STEng – BT

ST Engg wins US$500m US Army contract

It’ll supply laptops, test equipment and instruments

ST Engineering has won a US$500 million contract to supply rugged laptops, test equipment and instruments to the US Army.

The five-year ‘indefinite delivery indefinite quantity’ contract gives the US Army the flexibility to acquire the items, known as At Platform Automatic Test Systems (APATS) Maintenance Support Device – Version 3 (MSD-V3) system, within stated limits.

ST Engineering’s US subsidiary VT Miltope will supply 70 per cent of the programme, with a subcontractor supplying the remainder.

The MSD-V3 is based on the TSC V3-GM45 rugged convertible laptop computer, the next generation of its TSC-750 computer, the company said.

VS Miltope, which makes the rugged computers, has been supplying its products to the US military for years. Over 20,000 units were deployed with US troops in Iraq earlier this decade. The computers are also supplied to the US Air Force, but the new contract is likely to be the biggest yet.

The militarised laptop is designed and qualified to withstand the harshest tactical environment for computer systems and is being used in forward areas under extreme weather and handling conditions.

The contract 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.

ST Engineering has had recent successes in foreign military contracts.

Last year, it secured a breakthrough £pounds;150 million (S$339 million) deal with the British army to supply over 100 armoured vehicles for use in Afghanistan.

Its land systems arm in July won a US$11 million deal to supply asphalt paving equipment to the US Army, the first defence sale for VT LeeBoy, an ST Engineering unit which is a leading manufacturer of commercial-class asphalt pavers.

The company has also secured multiple contracts supplying ammunition to foreign military forces, most recently a £pounds;2.8 million contract to supply 40mm ammunition to the UK Ministry of Defence, which it has done since 2002.

Yesterday, the company’s aerospace arm was awarded a Defence Industry Award of Excellence by the Defence Industry Committee of New Zealand (DICNZ) for its development of a multi-role combination solution for two Boeing 757-200 aircraft for the Royal New Zealand Air Force (RNZAF).

The second of the two converted aircraft was successfully redelivered this year with enhanced capabilities to RNZAF, and both are now operational, the company said.

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