Boustead subsidiary awarded S$40mln contract from Cenco

Company will design-and-build an integrated test bed facility with jet engine testing section and control centre.

Boustead Singapore Limited (Boustead) is pleased to announce that its 91.7%-owned subsidiary, Boustead Projects Pte Ltd (Boustead Projects) – a leading specialist in industrial real estate solutions – has been awarded a S$40 million contract from Cenco Inc (Cenco) to design-and-build an integrated test bed facility (the Facility), which will cater exclusively to the requirements of one of the world’s leading power systems corporations (the “End-User”). This is the fifth contract secured by Boustead Projects within the last eight months.

Cenco will undertake the lead contractor role to the End-User for this Facility. Cenco is a leading supplier of jet engine test cells, data acquisition and control systems, and jet engine test equipment for both commercial and military applications, ranging from small turbine engines to large turbofan engines. Cenco is a wholly-owned subsidiary of Techspace Aero, which is an integral part of the aerospace business of the Safran Group, an international high-technology group with more than 54,900 employees worldwide.

With a gross floor area of approximately 7,900 square metres, the Facility comprises a single-floor jet engine testing section and a three-floor control centre. Due to be completed in the second quarter of 2011, the Facility is the second project undertaken by Boustead Projects at the Seletar Aerospace Park (SAP). Boustead Projects secured its first project at the SAP in December 2009 when it was awarded a S$107 million contract to design-and-build an integrated manufacturing and support facility for the End-User.

The SAP is a 300-hectare aerospace park which is being developed in Singapore to support Singapore’s rapidly growing aerospace industry. As a leading-edge, world-class integrated aerospace hub, the SAP is currently home to more than 20 global aerospace corporations involved in activities related to:

• Aerospace maintenance, repair and overhaul;
• Aviation systems and components design and manufacturing;
• General aviation businesses and activities; and
• Aerospace training institutes for pilots, professionals and technical personnel.

Mr Thomas Chu, Managing Director of Boustead Projects said, “We are honoured that Cenco selected us as its choice partner to deliver yet another advanced integrated facility for one of the world’s most respected names in power systems. This facility will contribute to the rapid expansion of the Seletar Aerospace Park and enhance Singapore’s position as the leading aerospace hub in the Asia Pacific.”

The above contract is not expected to have a material impact on the profitability, earnings per share or net asset value per share of Boustead in the current financial year ending 31 March 2010. However, the above contract is expected to have a positive material impact on the profitability and earnings per share in the next financial year ending 31 March 2011.