OPERATING REVIEW AND OUTLOOK Our ship repair business also saw strong performance, driven by increased demand for ship repair, conversion and MRO services for commercial and naval vessels. We remained the preferred partner for sophisticated, high-quality conversions and maintenance, including ongoing support for United States Naval Ships. Completed projects included the re-activation of trailing suction hopper dredgers, conversion of a roll-on roll-off vessel to a training vessel, as well as outfitting a vessel to enable future battery installation and the hybridisation of the propulsion system. To date, we have completed over 100 installations of Ballast Water Treatment Systems on vessels in accordance with the International Convention for the Control and Management of Ships’ Ballast Water and Sediments (BWM Convention). DEFENCE AEROSPACE We continued to support Singapore’s Ministry of Defence in various programmes, including participating in Singapore’s international Humanitarian Assistance and Disaster Relief mission deployment to the Middle East. Through close operations and logistics integration with the Singapore Armed Forces team, our team of technicians ensured that the deployed aircraft was operationally ready for airdrop missions. Our strong track record as a C-130 Centre of Excellence helped us to secure new orders for C-130 MRO and upgrades internationally, with customers from Asia, the Middle East and the U.S., keeping our hangars at full capacity for most part of the year. During the year, we completed a C-130/L-100 Centre Wing Box replacement for Lynden Air Cargo, a U.S.-based operator. This is our 186th successful aircraft redelivery over 25 years of close partnership with Lynden Air Cargo. We also forged new collaborations with industry partners such as Airbus Defence and Space to provide MRO services for C295 users, and Embraer to jointly explore engineering, maintenance and support services for the C-390 in the Asia Pacific region. OUTLOOK Ongoing geopolitical conflicts have underscored the continued relevance of traditional warfare, while highlighting emerging defence trends such as AI, unmanned systems and cyber capabilities that are reshaping military strategies. Global defence spending is expected to remain robust as countries prioritise military modernisation to safeguard national interests. This urgency extends to upgrading legacy equipment and enhancing operational readiness. To address these needs, we are actively pursuing opportunities across our portfolio of defence solutions, driven by the long-term defence needs of our customers. This is reflected in the strong interest in our defence electronics and HED solutions, which are key to modernising legacy platforms and extending operational lifespans. Additionally, we are scaling up the production of 155mm and 40mm ammunition to meet the heightened demand from Europe and the Middle East. We will continue to expand our global footprint through localisation, in-country operations support, as well as licensing agreements. Production of the new 8x8 amphibious multi-purpose armoured vehicle at KPE’s production facility in Kazakhstan is on track to begin by end 2025. In partnership with Babcock International Group, we introduced the 120mm Ground Deployed Advanced Mortar Systems to be built at Babcock’s UK facility, supporting the modernisation of the British Army. The rise of cloud technologies, hybrid work models and advanced cyber threats has heightened the need for secure infrastructure and data storage. Expanding 5G networks, while enhancing connectivity, also creates new vulnerabilities. Our priority is to deliver robust solutions that address emerging threats and evolving challenges, including red teaming and advanced penetration testing to combat sophisticated attacks. 36 ST ENGINEERING | ANNUAL REPORT 2024
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