ST Engineering's Marine Arm Awarded Submarine Rescue Contract By Singapore Navy Worth About $400m
By: Singapore Technologies Engineering Ltd.
Singapore, 14 March 2007 - Singapore Technologies Engineering Ltd (ST Engineering) today announced that its marine arm, Singapore Technologies Marine Ltd (ST Marine), has been awarded a contract of about $400m to provide a ship and submarine rescue system and maintenance services to the Republic of Singapore Navy (RSN). The contract will be shared 60:40 between ST Marine and its partner, James Fisher Defence Limited (JFD).
The contract comprises two parts. The first is to design and build a fully integrated ship and submarine rescue system and the second is to operate and maintain the system over 20 years. ST Marine and JFD will set up a 50:50 joint venture company for the sole purpose of this contract.
This 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.
The ship and submarine rescue system comprises a Submarine Support and Rescue Vessel (SSRV) which can transport a Submarine Rescue Vehicle (SRV) and its handling systems out to sea. The SSRV then lowers the SRV into the water to reach a submarine in distress.
Design of the SSRV will begin immediately, with construction expected to start in 3Q2007. The 20-year services contract will begin from 2Q2009, when the SSRV and SRV have been completed and integrated into a submarine rescue system.
"This is the first Private Public Partnership (PPP) project from the RSN. We are grateful to the RSN for entrusting ST Marine and James Fisher Defence with this very important programme. James Fisher Defence is world renowned for its submarine rescue operations and we are delighted to have them as our partner in this programme." ~ SEE Leong Teck, President, ST Marine