ST Engineering unit wins US$87.1 million UK defence contract

It will provide nine variants of 40 mm high and low velocity grenades to the military

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Shikhar Gupta

Published Tue, Jun 30, 2026 · 01:39 PM

ST Engineering Advanced Material Engineering beat two competing companies to win the contract. PHOTO: BT FILE

[SINGAPORE] ST Engineering’s Advanced Material Engineering unit has secured a £65.8 million (US$87.1 million) contract with the UK’s Defence Equipment and Support, a trading entity within the UK Ministry of Defence.

Under the agreement, the company will supply nine variants of 40 mm high and low velocity grenades, according to the UK government’s tender website.

The agreement also includes an option allowing the UK to purchase additional quantities of the munitions while the contract remains valid. Contract locations for the procurement will span across Singapore, the Netherlands and the UK.

The tender result was first published on Jun 11, with ST Engineering correctly named as the supplier only in an update on Jun 25. The initial version named GTDS Europe as the supplier when the Netherlands-based company was instead the authorised representative of the ST Engineering unit.

The contract is estimated to run for a duration of five years, starting on Jul 8 this year, and concluding on Jul 7 in 2031. Its value rises to £82.3 million when value-added tax is included.

In line with the UK’s Procurement Act, the release of the award notice triggered a mandatory standstill period of at least eight working days – lasting until Jul 7 in this case – before the contract can be officially signed.

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The Singapore-based company emerged victorious after three tenders were received and assessed in the final stage. The two unsuccessful suppliers were identified as UK-based NIOA Nominees and Ian Edgar (Liverpool).

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