ST Engineering unit wins US$500m contract from US Army

ST Engineering said on Thursday that its unit, VT Miltope, has won a US$500 million contract to supply a maintenance support device system to the US army.

VT Miltope specialises in the design, development and production of rugged computers, servers and related peripherals that can operate in the most demanding environmental conditions.

The company will provide the US army with an “At Platform Automatic Test” systems maintenance support device.

The contract is not expected to have any material impact on ST Engineering’s assets and earnings for the current financial year.

– CNA/sc

ST Engg buys 33% of S’pore Airshow organiser

Price of $17.57m to be paid in cash from internal resources

ST ENGINEERING has bought a one-third stake in events organiser Singapore Airshow & Events (SAe) for $17.6 million.

The vendor was the Defence Science and Technology Agency (DSTA), which retains a 17 per cent stake in the company. Other shareholders are the Civil Aviation Authority of Singapore (30 per cent) and Changi Airport Group (Singapore) (20 per cent).

With the acquisition, ST Engineering becomes the single largest shareholder of SAe. The purchase price of $17.57 million will be satisfied in cash from internal resources, ST Engineering said yesterday.

The company said that SAe’s unaudited net tangible assets as at Aug 31 was about $54 million.

Peter Seah, Desmond Kuek, Tan Kim Siew and Quek Tong Boon are directors of ST Engineering and members of the DSTA Board, the company disclosed.

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

SAe is principally engaged in organising and managing conferences, exhibitions and other related activities. It was set up in 2005 primarily to organise and manage the biennial Singapore Airshow, Asia’s biggest aviation and defence exhibition.

As well, SAe co-organises Singapore International Water Week, an event that brings together leaders in the water industry.

Based on SAe’s audited accounts for the financial year ended March 31, the company’s net tangible assets and loss after tax were $20.6 million and $6.1 million respectively.

ST Engineering said that due to the nature of the airshow business, losses are incurred in a financial year when there is no airshow.

The company said that the Singapore Airshow is an important avenue for it to display its products to an international audience.

Last year, ST Engineering was the single largest exhibitor at the show and announced close to $500 million of signed contracts during it.

ST Engineering’s shares closed yesterday at $2.82, up four cents.

ST Engg wins 59m yuan MRT systems contract in China

ST Electronics has won a 58.8 million yuan (S$12.2 million) contract to provide electronic systems to Changchun Rolling Stock Company.

The electronics arm of listed ST Engineering said the passenger information systems (PIS) and security monitoring systems are for Changchun Rolling Stock’s project in the Saudi Mashaaer Mass Rapid Transit Line in Saudi Arabia, and there is also a PIS for an MRT line in China.

The contract starts immediately and work will be completed by the second half of 2010, ST Engg said. It is not expected to have any material impact on net tangible assets per share and earnings per share for the current financial year.

ST Engg said the new contract brings the total value of PIS projects in China to over 100 million yuan. The company has been awarded more than 10 rail projects in China to date.

The PIS system will be installed in 17 trains with each train comprising 12 cars. To enhance subway service levels, the system provides information to passengers including real-time train location and schedules, announcements of important messages and other multimedia information. Under the contract, ST Electronics will provide system design, supply equipment and software, install, test and commission the systems.

‘This latest contract further strengthens our track record in China for MRT systems,’ said Lee Fook Sun, president of ST Electronics.

ST Engg closed at $2.72 yesterday, up 3 cents.

ST Engg on track to deliver on £150m arms deal

Armoured Warthog vehicles to be delivered to UK army from year-end

ST KINETICS yesterday unveiled a new armoured car ordered last year in a breakthrough £150 million (S$337 million) deal by the British army and said the vehicles would be delivered on schedule from the end of the year.

The land systems arm of listed ST Engineering said the ‘Warthog’, a heavily armoured all-terrain vehicle for deployment in Afghanistan, would be delivered to the UK Ministry of Defence in four variants from the end of the year, with most of the deliveries in 2010.

Twelve UK Armed Forces staff are undergoing maintenance and operations training in Singapore.

The deal is seen as significant because it is the company’s first major contract with one of the world’s premier armed forces. ST Engineering had previously failed in a bid to supply armoured vehicles to the US Army and the successful delivery of the Warthog – and its performance in combat – is seen as vital to the company winning further major international orders.

The British army bought over a hundred of the vehicles in December last year. The Warthog is a modified version of the Bronco all-terrain tracked carriers supplied to the Singapore Armed Forces.

It will be powered by a 7.2-litre engine producing 350 bhp and will be able to move through water – all while carrying up to 14 troops. When not in water, the highly agile, all-terrain vehicle will be able to climb steep gradients, cling to severe side slopes, tackle vertical obstacles and roll across trenches.

ST Kinetics said that it had procured production materials and components ahead of the Warthog contract award. To ascertain the vehicle’s performance in extreme heat and dust conditions, it put a 19-tonne Warthog test vehicle through desert trials in United Arab Emirates this summer.

‘We are proud to roll out the first Warthog ATV within UK MOD’s demanding delivery schedule and rigorous requirements. This is possible because of the close and productive relationship we have forged with the UK MOD from day one,’ said Sew Chee Jhuen, president of ST Kinetics.

Brigadier Ian Simpson of the UK MOD said: ‘The Warthog itself has proven itself to be a very capable vehicle in tests and trials. I am impressed by the high standards of engineering applied to this vehicle and the quality of the support package; providing our deployed forces with the higher levels of protection and mobility.’

ST Engg’s US unit gets repeat order for articulated tug barge

SINGAPORE Technologies (ST) Engineering’s US shipyard unit VT Halter Marine has clinched a repeat order to outfit and commission a second 350,000-barrel-capacity articulated tug barge (ATB) unit for OSG Ship Management.

Work will commence in November and is expected to be completed by mid-2010. VT Halter Marine was contracted in April by OSG to undertake similar work on another 350,000-barrel ATB, expected to be delivered by the end of this year. The two units were reportedly uncompleted jobs removed from Mobile-based Bender Shipbuilding by OSG in March due to delays in the delivery schedule.

ST Engineering declined to reveal contract values but they are not expected to have any material impact on its consolidated net tangible assets per share and earnings per share for the current financial year.

However as an indication, VT Halter received a contract to build four smaller units of a similar type of vessel for US$240 million in September 2006. This was a full construction job and included the cost of owner-furnished equipment. The 199.65m by 32m ATBs will be the largest ever built by VT Halter Marine. These state-of-the-art ATBs will be used to perform lightering services and equipped with specialised equipment to meet stringent vapour balancing regulations in the Delaware Bay, where the vessels will trade.

‘Delivering these vessels to an important customer is a top priority for OSG. We selected VT Halter Marine due to their experience in constructing similar types of ships and the company’s high quality of operations, which extends to the quality of vessels they have built, the skills and experience of the shipyard workers and management’s commitment to working with us on this high-profile project,’ said Robert Johnston senior vice-president, OSG Ship Management.