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ST Engineering's US unit enters into Saudi JV
A US subsidiary of Singapore Technologies Engineering (ST Engineering) has entered into a joint venture in Saudi Arabia.
The US subsidiary, VT Halter Marine Inc, has formed a new joint venture, ZHR Marine LCC, with Raytheon Company and Zamil Group, ST Engineering said in a Singapore stock exchange disclosure.
ZHR Marine has an issued and paid up capital of three million Saudi riyal (about S$1.1 million).
Each of the three named partners will hold one third of the shareholding in ZHR Marine.
The JV is set up for the purpose of bidding for projects under the Royal Saudi Naval Force (RSNF) Eastern Fleet Modernisation Programme, which requires local content.
The partnership will leverage the experience of VT Halter Marine in the construction of naval vessels, the shipbuilding capability of the Al Zamil Group, and Raytheon's broad portfolio of naval systems and weapons, and ship systems integration expertise.
The setting up of this joint venture 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.