The year 2002 saw ST Engg a step closer to realising its vision to
become a global defence and engineering group. It laid its global
footprints by making headway in its target growth markets in the US,
Europe and the Asia-Pacific region.
In the US, ST Engg is growing both its defence and commercial businesses
by replicating its business model comprising four core capabilities
of Aerospace, Electronics, Land Systems and Marine through
VT Systems. The Group completed a number of asset acquisitions in
the US during the year, thereby giving it the physical presence and
access to its target markets.
In Europe and the Asia-Pacific region, the Group made a series of
strategic investments and alliances with global and local partners
to expand its technological capabilities as well as broaden the scope
for selling its products and services in new markets.
Going forward, it will continue to evaluate possible acquisitions
in the US, grow its European presence selectively in thecommercial
aerospace and defence businesses, expand its commercial business in
the Asia-Pacific region particularly in the Greater China market
and invest in disruptive and nascent technologies in the areas
of robotics, unmanned aerial vehicles, miniaturisation and other related
1. Texas, US
San Antonio Aerospace
aerospace arm, ST Aero, acquired the assets of Dee Howard Aircraft
Maintenance L.P. an MRO company based in the city of San Antonio,
Texas for US$14.2 million.
Renamed San Antonio Aerospace, the new facility complements ST Aero's
two existing US MRO facilities in Mobile, Alabama and Dallas, Texas.
It also enables ST Aero to grow its global network of MRO facilities
at a steady pace, giving it the additional capacity necessary to ride
the next wave of growth in the aviation industry.
2. Mississippi, US
VT Halter Marine
ST Engg strengthened
its position in the US market with the acquisition of Halter Marine
Inc.'s shipbuilding assets in Mississippi Gulf Coast and Louisiana.
This US$66 million acquisition marks the first milestone in its strategic
thrust to enter the US defence and commercial shipbuilding markets.
The shipbuilding facilities now operate under
VT Halter Marine.
3. United Kingdom
Bournemouth Aviation Services Company
ST Aero took its
first step to establish a European airframe MRO facility by forming
a 60/40 joint-venture company with FR Aviation Ltd (FRA) called Bournemouth
Aviation Services Company (BASCO).
BASCO inherits an initial baseload of maintenance work for commercial
narrow-bodied aircraft from FRA's customers and is working to grow
its customer base by targetting European airlines and ST Aero's global
ST Engg's land
systems arm, ST Kinetics, took a 25 percent stake in Timoney Holdings
Limited in Ireland, a global leader in suspension systems for heavy
vehicles.Timoney brings to
ST Kinetics added wheeled vehicle design capabilities while complementing
its current technology portfolio in vehicle sub-systems.
5. Turkey and Belgium
ST Kinetics signed
MOUs with key defence players in Turkey and Belgium to promote products
such as the Terrex AV81 and the Bronco All Terrain Tracked Carrier.
Sino Stride Technology
ST Engg's electronics
arm, ST Elect, invested HK$36 million (S$8.25 million) in Sino Stride
Technology (Holdings) Limited, whose main operating unit Zhejiang
Sinostride Technology is a leading intelligent building systems
integration house in China.
This investment complements ST Elect's intelligent building systems
business and further strengthens its presence in China.
Kinetics Systems (Shanghai)
ST Kinetics incorporated
a new subsidiary, Kinetics Systems (Shanghai), to manufacture and
market electric and hybrid drive systems in China. This is in line
with its strategy to invest in dual-use technologies and become a
leading provider of technical solutions in the areas of electric and
hybrid electric drive systems and distributed power generation.
ST Kinetics took
a 9.6 percent equity stake in Nesscap Co., Ltd one of six companies
in the world that manufacture commercial ultra-capacitors for applications
in electric and hybrid vehicles, standby power systems and the utilities
Complementing its alternate energy business portfolio, this investment
gives ST Kinetics the exclusive distribution rights for large ultra-capacitors
in the Asia-Pacific region (outside of Japan and Korea).
ST Elect acquired
a 22 percent equity stake in RF Korea Inc. a company that specialises
in radio frequency module design and manufacturing to strengthen
its wireless communications capability and broaden its reach in the
infocomms markets in Asia and Latin America.
ST Elect bought
a 70 percent stake in transportation systems solutions provider, Ripple
Systems, to gain access into new markets as well as grow its business
in this area.
ST Elect partnered
with Melodeon Inc. and Trek 2000 International Ltd to form a joint-venture
company called InfoWave Pte Ltd to develop and supply wireless and
mobile computing products to global vertical markets such as transportation,
maintenance, engineering, healthcare and properties. It is also tapping
into its partners' distribution channels and global business networks
to penetrate the global OEM (Original Equipment Manufacturer) and
ODM (Original Design Manufacturer) markets.
Mobile Solutions and Payment Services
ST Elect acquired
a 30 percent stake in Mobile Solutions and Payment Services Pte Ltd.
The company will draw on ST Elect's portfolio of wireless and data
communication capabilities as well as collaborate with financial institutions,
telecommunications and content providers to develop innovative new
mobile applications for the mobile commerce market.
ST Elect took a
10 percent equity stake in Valens CGV Pte Ltd to pursue new businesses
in computer graphics and visualisation technologies in the healthcare,
education, and exhibition and convention industries in Singapore and
ST Engg incorporated
FusionTech as its investment vehicle for emergent technologies which
complement and support the medium to long term development of the
FusionTech's first investment was in NanoScience Innovation Pte Ltd
(NSI), a research and development company in nanostructure science
and technology. NSI aims to develop processes in nanopowder production
and eventually become a major player in the production and trading
5. Turkey And Belgium