SINGAPORE -- Singapore Technologies Engineering Ltd (ST Engineering) today announced that its land systems arm, Singapore Technologies Kinetics Ltd (ST Kinetics), has been awarded a contract worth about EUR 8 million (about S$15.6m) by the Swedish Defence Materiel Administration, Forsvarets Materielverk (FMV), for the supply of 40mm ammunition. The contract was signed with Advanced Material Engineering Pte. Ltd. (AME), a subsidiary of ST Kinetics. Delivery is planned to take place in 2H2009.
ST Kinetics has been supplying 40mm munitions to FMV since 1999. The latest order includes 40mm Low Velocity High Explosive Dual Purpose Self-Destruct (LV HEDP-SD) and Target Practice ammunition, as well as High Velocity High Explosive Dual Purpose Self-Destruct (HV HEDP-SD) and Target Practice rounds.
ST Kinetics is today the world's leading provider of 40mm grenade solutions offering various 40mm grenade launcher weapon systems and an unparalleled range of 40mm ammunition including high and low velocity, high explosive, enhanced blast, self-destruct, air bursting, surveillance, insensitive and less-than-lethal rounds. Last year, ST Kinetics announced two 40mm ammunition contracts from UK MoD worth a total of about S$120m.
"We are delighted that the Swedish Armed Forces has once again shown their confidence in our 40mm solutions through the award of this ammunition contract amidst strong competition. As a leading Total 40mm Solutions provider, we will continue to innovate and deliver quality solutions for esteemed customers like FMV," said SEW Chee Jhuen, President, ST Kinetics.
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.
AME is a wholly-owned subsidiary of ST Kinetics, the leading supplier of 40mm grenade munitions in the world. ST Kinetics is the land systems and specialty vehicles arm of ST Engineering.
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 revenue of $5.34b in FY2008 and ranks among the largest companies listed on the Singapore Exchange. ST Engineering has more than 19,000 employees worldwide, and over 100 subsidiaries and associated companies in 24 countries and 42 cities.