ST Engineering scores big with 8-vessel Singapore Navy contract win

Delivery set for 2016 onwards.

Singapore Technologies Engineering Ltd (ST Engineering) announced in a release that the Group has been awarded a contract by the Ministry of Defence (MINDEF) for the design and build of eight new vessels.

The Group’s marine arm, Singapore Technologies Marine Ltd (ST Marine) will build the eight vessels at its Singapore Benoi Yard. Singapore Technologies Electronics Limited (ST Electronics), the Group’s electronics arm, will supply the core combat systems and combat system integration solutions.

ST Marine will carry out the platform system integration as the lead system integrator. Design of the vessels will commence immediately and the delivery of these vessels is expected to be from 2016 onwards. The new vessels will replace the Republic of Singapore Navy’s existing Fearless-class Patrol Vessels, indigenously designed and built by ST Marine in the 1990s.

ST Engineering said that because the company is under contractual obligation to observe confidentiality in respect of the contract, it is unable to disclose any further details.

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.