STEng – BT

ST Engg JV to develop observation satellites

ST Engineering has set up a joint-venture company with Nanyang Technological University (NTU) and DSO National Laboratories to develop advanced earth observation satellites.

The new company, ST Electronics (Satellite Systems), will be a new and complementary addition to its existing satellite communications and sensor systems business, according to ST Engineering.

ST Engineering’s stake in the joint venture company is 51 per cent and will be held through ST Electronics’ wholly owned subsidiary, ST Electronics (Satcom & Sensor Systems). DSO and NTU will own 33 and 16 per cent stakes in the joint venture respectively.

When contacted by BT yesterday, representatives from ST Engineering responded that plans are in place for the funding of the research and engineering activities. However, the company declined to elaborate on the value of the investment.

‘As a leading global provider of satellite communication and sensor solutions, we see this new capability build-up in the earth observation satellite segment as a logical extension of our existing business,’ said ST Electronics president Lee Fook Sun.

The JV aims to couple the research and engineering competencies of both DSO and NTU with ST Electronics’ marketing expertise to design and develop local satellite technologies that can be sold in the global market.

The new company is not expected to have any material impact on the consolidated NTA per share and EPS of ST Engineering for the current financial year.

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