Group Overview

Singapore Technologies Engineering (ST Engg) was formed in December 1997 through the amalgamation of four publicly listed companies within the Singapore Technologies Group –namely Singapore Technologies Aerospace (ST Aero), Singapore Technologies Automotive (ST Auto), Singapore Technologies Electronics (ST Elect) and Singapore Technologies Marine (ST Marine) – with core businesses in defence and engineering related activities.

The merger created an integrated defence and engineering group with a comprehensive suite of capabilities and products that enable it to compete globally and meet the changing needs of the customers.

In early 2000, the Group further acquired the Chartered Industries group of companies, which was then largely in the production of munitions and defence ordnance. Together with ST Auto (now known as ST Kinetics), this has resulted in a larger and more comprehensive Land Systems group.

Headquartered in Singapore, ST Engg today has a staff strength of about 12,000, most of whom are located in Singapore and the US. ST Engg has established a strong presence in various parts of the world, offering a comprehensive breadth of services and products through its four sectors.

Group’s Vision, Mission and Strategies

ST Engg’s vision is to be a global defence and engineering group. Its mission is to bring value to the customers and partners through the delivery of total integrated quality solutions and support.

To achieve the above, the Group focuses on developing its strategic capabilities, building global networks, strengthening business partnerships and attaining business excellence. This in turn will drive its customer centric business processes, strong design capabilities, quality workmanship, competitive pricing, innovation and continual improvements to sustain its competitive advantage.

To measure the Group’s progress and achievements in realising its vision and mission, it has set both short and long term performance targets for its four above mentioned focus areas. Such performance targets include, among others, number of new products/services, number of new investments, research and development expenditure, sales and profits growth, return on equity and economic value added (EVA) spread.

Sector Overview

Aerospace sector - Headquartered in Singapore, ST Aero is an aircraft engineering and aviation services company with operations in Asia Pacific, Europe and the US. ST Aero was ranked as the world’s largest third party commercial airframe maintenance, repair and overhaul (MRO) provider in the latest biennial survey published by the Overhaul and Maintenance magazine in March. It supports a global customer base through its broad spectrum of capabilities and facilities, and has a strong blue chip customer base unrivalled within the industry.

Quality and safety are essential to the aviation industry, and all ST Aero’s operations worldwide are maintained to exacting standards under ST Aero’s quality system. The ST Aero quality system is audited and approved by airworthiness authorities which include the Civil Aviation Authority of Singapore, US Federal Aviation Administration, European Joint Aviation Authority, Japan Civil Aviation Bureau, UK Civil Aviation Authority and many others, including all its customers.

A service oriented company, ST Aero offers customers a total aviation solution to all their maintenance requirements through its three business groups namely, Aircraft Maintenance & Modification (AMM), Component/Engine Repair & Overhaul (CERO) and Engineering & Materials Services (EMS).

ST Aero’s major facilities are located in Paya Lebar and Changi Airports, Singapore; Mobile and San Antonio, USA, and Bournemouth and Stansted, UK.

The AMM business group continued to extend its capabilities. In 2003, it strengthened its comprehensive suite of capabilities for Boeing, McDonnell Douglas, and Airbus narrow and wide-body aircraft with the addition of repair capabilities for new aircraft types such as the A330, A340 and the B777. In addition, it has a strong and broad-based capability for both helicopters and military aircraft, which it continued to extend to include the F-16 fighter and the Chinook helicopter.

On engines and components support, ST Aero further enhanced its range of capabilities for the B737CG, B737NG, B757, A320 and the MD-11 commercial aviation components. It has also developed a wide range of new capabilities for the F-16, KC-135 and CH-47 military components, in addition to adding repair and overhaul capabilities for Bell 430 transmission components. New test facilities including a Test Cell for T55/T700 and CFM56-3 engine types, and a Universal Fuel Component Test Stand for engine accessories for the F100, F404, JT5 and CFM56 were completed this year.

On the EMS front, ST Aero continued to build upon its strengths in engineering knowledge. In the Engineering and Development arena, the sector’s engineering capabilities added value to customers through reliability and maintainability studies to improve the performance of their fleet cost efficiency. ST Aero’s engineering resources were also successfully applied to the design and development of the B757 passenger-to-freighter (PTF) programme with Boeing, and which saw the successful completion of the conversion of 17 aircraft for DHL in 2003. In addition, for the support of the low cost carriers, ST Aero further extended its total aviation support capabilities to customers such as AirAsia. ST Aero also undertook an Aircraft, Crew, Maintenance and Insurance (ACMI) contract for Biman Bangladesh Airlines, realising the concept of the “virtual airline".

Electronics sector - ST Elect prides itself in delivering innovative and purpose built electronic system solutions to defence and commercial customers worldwide. The Company’s operations are headquartered in Singapore, and mainly based in its Ang Mo Kio complex with additional facilities located at Jurong East. Besides office space, the facilities include production floor, service workshops, a state-of-the-art Electromagnetic Capability Centre and an Instrument Calibration Centre certified by international bodies such as National Physical Laboratory (UK), National Institute of Standards & Technology (USA), National Measurement Laboratory (Australia) and SPRING Singapore.

Its business comprises three core business groups: Communication & Sensor Systems Group (CSG), Large-Scale Systems Group (LSG) and Software Systems Group (SSG). ST Elect specialises in the design, development, integration and production of advanced electronics systems, such as broadband radio frequency and microwave communication systems, rail and traffic management systems, mobile real time command and control systems, training and simulation systems, intelligent building management systems and information security and m-commerce solutions. ST Elect applies leading edge technologies and design methodologies to meet stringent and customised requirements. It undertakes continuing research and development to help create cost effective proprietary products at system and component levels, delivering innovative and quality solutions to customers.

ST Elect provides systems and solutions to two main groups of customers: defence and commercial. Its major customer in defence is the Singapore Ministry of Defence (MINDEF). Commercial customers include rail operators such as Singapore Mass Rapid Transit (SMRT), Taiwan Department of Rapid Transit System (DORTS) and Manila Light Rail Transit Authority (LRTA); transportation authorities such as Land Transport Authority (LTA) and Suzhou City (China) Public Security Bureau; public safety agencies and network operators/system integrators worldwide.

Land Systems sector - ST Kinetics is the land systems arm of ST Engg, headquartered in Singapore with major facilities located in Jalan Boon Lay, Portsdown Road and Bukit Timah. It provides design and engineering services for both commercial and military vehicles and related ordnance products, including manufacturing, system integration, upgrading, MRO and other lifecycle management services. ST Kinetics also provides automotive subsystems and laboratory and industrial test services.

In the last few years, ST Kinetics has re-positioned itself on two fronts: (1) Defence Business – aligning its capabilities to prepare for a new phase in the industry’s development brought about by fundamental shifts in customers’ needs and the global defence industry in general, and (2) Commercial Business – investing in overseas ventures to build up its automotive businesses. 2003 saw the continuation of ST Kinetics’ journey of transformation in these two pillars of our business.

The Defence Business Division is accelerating capability development in the areas of strategic importance to ST Kinetics’ key customer, MINDEF. This means reduced focus on traditional warfare but greater emphasis on a “systems" approach towards smarter, network-centric solutions such as multi role land systems, and guided weapons.

In exports, the Defence Business Division continues to secure recurring sales in traditional markets as well as establishing strategic alliances in new markets. Collaboration programmes with Otokar of Turkey for the 8x8 Terrex and the Bronco were initiated in 2003. It will continue to establish its presence in the global market through the major international defence exhibitions and participation in demonstrations and trial programmes for potential customers around the world.

The Commercial Business Division has been expanding its local automotive services and venturing into the commercial vehicles market. STAR successfully launched its franchise in Singapore and in April, ST Kinetics announced its intention to form a 50:50 joint venture in China, subject to regulatory approval, to produce heavy vehicles for the construction industry. The latter lays the groundwork for the Commercial Business Division to expand into the overseas market and to eventually contribute significantly to the Company’s total revenue in the longer term.

Marine sector – ST Marine specialises in the design, construction, maintenance and repair of naval and commercial vessels. The Company serves a global clientele that spans Asia, Europe, Middle East and the US.

Headquartered in Singapore, ST Marine provides turnkey shipbuilding solutions for a wide range of naval and commercial vessels from concept definition to detailed design, construction, on board system installation and integration, through to testing and commissioning. The most recent major projects completed include the design and building of four units of 141m Landing Ship Tanks customised to the specific requirements of the Republic of Singapore Navy (RSN) and the construction of three sophisticated Platform Supply Vessels (PSV) for NYSE listed Tidewater.

In shiprepair, ST Marine’s capabilities include ship conversion to upgrading and retrofitting of commercial vessels, ranging from bulk carriers and tankers to Ro-Ro vessels, dredgers, seismic vessels, offshore supply vessels to cruise liners. Supported by two major facilities covering a total area of 18.8ha, in the west of Singapore, ST Marine is able to service vessels up to 70,000 deadweight tonne.

Since ST Engg’s acquisition of Friede Goldman Halter’s shipbuilding facilities in October 2002, the Marine sector is now physically present in the US, with the operation of VT Halter Marine based at Gulfport, Mississippi. VT Halter Marine is a leader in the design and construction of small to medium sized vessels such as patrol vessels, oil recovery vessels, oil cargo vessels, ferries, logistic support vessels and research ships.

With its strong design capabilities and high level of engineering expertise, the Marine sector is well placed to meet the specialised need of its customers which require technically sophisticated and customised solutions.