ST Engineering forms ZHR Marine in a JV

Paid up capital is $1.1 million.

Singapore Technologies' Marine arm forged a joint business venture with Saudi Arabia's Raytheon Company and Zamil group to form ZHR Marine, LLC.

Through its United States subsidiary VT Halter Marine Inc., ST Engineering will be holding a third of the shareholding with a paid up capital of $1.1 million.

"ZHR Marine’s three founding companies offer capabilities in shipbuilding and systems integration as well as extensive experience across sea and shore-based sensors and weapons," ST Engineering said in a statement.

The said partnership will leverage the experience of VT Halter Marine in the construction of naval vessels and the shipbuilding capacity of the Zamil Group.

"The JV is set up for the purpose of bidding for projects under the Royal Saudi Naval Force (RSNF) Eastern Fleet Modernisation Programme, which requires local content," ST Engineering noted.

According to the group, the setting up of the joint venture 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.