ST Engineering, SINGAPORE: Singapore Technologies Engineering Ltd today announced that its US shipyard VT Halter Marine Inc., has won a contract modification worth US$41.5m (about S$64m) from the US Navy for the Egyptian Navy's Fast Missile Craft (FMC) project under the Foreign Military Sales (FMS) programme.
The modification enables VT Halter Marine, as the prime contractor, to carry out additional work, which is to procure long lead time materials for the command and control (C2) system in support of the Phase II detail design and construction. Phase II includes: all hardware, software, licensing, design engineering, production engineering, manufacturing, test engineering, technical documentation, and programme management through Factory Acceptance Testing and shipyard delivery of each respective system. Phase II is expected to be awarded in FY 2008.
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.
VT Halter Marine secured the Phase I functional design contract for US$28.8m (approximately S$49m) on 1 December 2005. On 22 November 2006, the first letter contract modification was awarded for long lead time materials, valued at US$165m (about S$263m). This is the second letter contract modification, which brings the total amount awarded on this programme to approximately US$235m (about S$376m). The programme value could grow to more than US$450m after Phase II is added to the contract.
The Fast Missile Craft is designed to perform coastal patrol, surveillance, interdiction, surface strike, and naval battle group support for the 21st century. These vessels will allow the Republic of Egypt to maintain the security of its coastal regions for both itself and friendly countries, while denying access to the areas by any future adversaries. The vessels will be approximately 62m in length and will incorporate ship signature control technology. High speed and manoeuvrability are two of the ship's primary assets to fulfil these roles. The vessels will also incorporate numerous combat system assets and electronic sensors that give them capabilities in anti-aircraft, anti-surface, and electronic warfare.
“This contract modification is a significant advancement in the Fast Missile Craft programme, and attests to the Navy's regard for VT Halter Marine's sophisticated engineering forte,” says See Leong Teck, President, ST Marine.
VT Halter Marine is the marine operations of VT Systems. Based in Pascagoula, Miss., it is a leader in the design and construction of medium-sized ships in the United States. VT Halter Marine designs, builds and repairs a wide variety of ocean-going vessels such as patrol vessels, oil recovery vessels, oil cargo vessels, ferries, logistic support vessels and survey vessels.
ST Engineering is an integrated engineering group providing solutions and services in the aerospace, electronics, land systems and marine sectors. Headquartered in Singapore, the Group reported revenues of $4.49b in FY2006.
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