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ST Engineering ties up with Israel defence powerhouse to sell naval missile systems
SINGAPORE Technologies Engineering (ST Engineering) on Wednesday evening announced that its land systems arm has signed an agreement with state-owned Israel Aerospace Industries (IAI) to set up a joint-venture (JV) company in Singapore.
ST Engineering and IAI, one of Israel's three major aerospace and defence companies, will each have a half stake in the JV.
Named Proteus Advanced Systems, the JV will leverage the strengths and track record of its parent companies to market and sell advanced naval missile systems, including a next-generation anti-ship missile system.
ST Engineering said it does not expect a material impact on its consolidated net tangible assets per share and earnings per share from the setup of this JV.
Separately, The Business Times reported this week that aerospace companies in Singapore are repositioning themselves for the long, hard road to recovery as business nosedives amid the coronavirus pandemic.
ST Engineering said its aerospace sector has seen demand fall for both the maintenance, repair and overhaul as well as its original equipment manufacturing businesses, although the impact is mitigated by a diverse customer base and broad service offerings, which include passenger-to-freighter conversions.
Shares of ST Engineering were trading at S$3.26 as at 10.55am on Thursday, down S$0.03 or 0.9 per cent.