STEng – BT
ST Engg wins US$165m US Navy contract
ST ENGINEERING’S US shipyard unit, VT Halter Marine, has won a contract from the US Navy to build a fourth fast missile craft for the Egyptian Navy.
The contract is worth at least US$165 million, taking the total value of the fast missile craft project to US$807 million, ST Engg said.
‘We are working towards the delivery of all four vessels to exceed the US Navy’s expectations,’ said Chang Cheow Teck, president of ST Marine, the marine arm of ST Engineering.
Work on the latest craft should begin by mid-2011, with delivery scheduled for end-2013. Work on the first craft is expected to be completed by mid-2012.
ST Engg said the contract will not have a material impact on its net tangible assets or earnings per share this financial year.
The company won a design contract for the vessels in December 2005. Subsequent modifications and a three-vessel order took the contract value to US$642 million by September 2008. The latest contract reflects non-recurring cost reductions from the first three vessels, as well as government-furnished equipment previously provided, ST Engineering said.
The 62-metre-long warships will be deployed off the Egyptian coast. They will be equipped with ship signature control technology, numerous combat systems and electronic sensors to provide them with anti- aircraft, anti-surface and electronic warfare capabilities, according to ST Engineering.
Last month, the company won a S$363 million maintenance contract from the Republic of Singapore Air Force.