Rolls-Royce and Pratt & Whitney postpone opening of new facilities
Karamjit Kaur, The Straits Times 9 Feb 09;
THE downturn in the aviation industry has put the brakes on the development of Seletar Aerospace Park.
Engine-makers Rolls-Royce and Pratt & Whitney have postponed plans to open new facilities at the site this year.
The projects are now expected to be completed next year, at the earliest.
When The Straits Times visited Seletar last week, the two plots of land were lying idle.
Confirming the delay, Mr Sia Kheng Yok, the director of transport engineering at the Economic Development Board (EDB), stressed that both companies are 'long-term investors in Singapore' and remain committed to their plans.
On why work has not started, Pratt & Whitney's communications manager for commercial engines and global services, Mr Greg Brostowicz, said: 'The aerospace environment has been very challenging, and we want to make sure we are taking actions that best support our airline customers.'
A Rolls-Royce spokesman said: 'The development of the facility will proceed in line with our engine delivery programme requirements.'
The Singapore plant will be Rolls- Royce's only major engine-making facility for large commercial aircraft outside Britain. It will make engines for Boeing 787 and Airbus 350 aircraft.
The Boeing jet was due to enter commercial service in May last year, but the launch has now been delayed till the first quarter of next year.
In May last year, JTC Corp, which is overseeing the development of the 140ha park surrounding the existing Seletar Airport, announced that Phase I of the project was off to a good start.
All the available land had been taken up by four companies: Rolls-Royce, Pratt & Whitney, and existing Seletar tenants Singapore Technologies Aerospace (ST Aero) and Jet Aviation.
ST Aero has completed its expansion works, but Jet Aviation's plans to build a second hangar - which would be twice the size of its existing 3,000 sq m unit - have been delayed.
This is not because of the business slowdown, but because the authorities have yet to release the plot of land required for the expansion. A fuel station that now sits on the site has to be relocated before Jet Aviation can go ahead and start work on its new hangar.
The company, which already faces capacity constraints on busy days, is hoping that things will get moving as soon as possible, said senior vice-president and general manager Sebastian Groeger.
In the meantime, road widening as well as other infrastructure works, such as the construction of a new power station, are proceeding as planned.
The Civil Aviation Authority of Singapore (CAAS) has also started work to extend the existing runway, so bigger
aircraft such as the Boeing 737 and Airbus 320 can land and take off at the airport.
From now until the middle of next year, when the project is due to be completed, the runway will be closed daily from 6.30pm until 8.30am the following day, said a CAAS spokesman.
EDB's Mr Sia said: 'In unveiling its Budget recently, the Government highlighted that Singapore should use the opportunity in this downturn to build up its capabilities and infrastructure, to position Singapore for its next phase of growth.
'In this spirit, we are maintaining the momentum of development at Seletar Aerospace Park.'
Due to be fully completed by 2018, the new aviation hub will create 10,000 jobs and boost output in the aerospace sector, which hit a record $6.9 billion in 2007.
