ST Engineering's Scandinavian aerospace arm enforces cost-cutting

Blame it on the depressing domestic travel demand in Europe.

In a release, Singapore Technologies Engineering Ltd’s (ST Engineering) aerospace arm Singapore Technologies Aerospace Ltd (ST Aerospace) today announced that it has embarked on a restructuring programme involving the Scandinavian operations of its wholly owned subsidiary, ST Aerospace Solutions (Europe) A/S.

This restructuring is necessary given the continued challenging aviation landscape in Europe marked by weak domestic travel and cargo demand in the region.

Given these market conditions, ST Aerospace needs to take steps to manage its cost structure and work processes in order to maintain its position in the European market.

ST Aerospace Solutions will streamline the utilisation and workflow of its three facilities in Copenhagen, Denmark; Oslo, Norway as well as Stockholm, Sweden. As part of this restructuring exercise, approximately 300 employees across functions could be affected. The exercise will commence immediately, and is expected to be completed by the third quarter of 2013.

As an organisation that values its employees, ST Aerospace Solutions is actively working to help its employees through this transition. Among these actions are dialogues with employees, counselling sessions, and job placement programmes to retrain and equip employees with new skills. It is working closely with trade unions and employee representatives to offer outplacement programmes to affected employees. It will also be fully compliant with relevant Scandinavian labour laws and practices.

ST Aerospace Solutions, a specialist in aircraft component repair, management and logistics services, remains committed to its presence in Europe.

The restructuring is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.