Stratech lands contract from Miami airport

Singapore

TECHNOLOGY firm The Stratech Group has landed its first commercial US contract to deploy its iFerret airfield/runway surveillance and foreign object & debris (FOD) detection system at Miami International Airport (MIA).

The contract, which was secured together with Stratech's US-based partner Organizational Strategies Inc, is for an initial five-year term with options to renew for a further three periods of three years each. The group did not reveal the value of the contract.

The counter closed at 4.2 Singapore cents on Tuesday, unchanged, before the announcement was released to the Singapore Exchange after the market closed. The stock has gained ground since April 7 when it was trading at about 1.5 Singapore cents.

The firm, which was put on the Singapore Exchange watch-list in June 2013, announced on Monday that it had received in-principle approval from SGX to be removed from the watch-list.

Executive chairman David Chew said: "Increasing concern over aviation safety worldwide has driven commercial airports to look for more efficient and effective FOD detection and surveillance systems. Eventually, such systems will replace the traditional manual inspections of runways, taxiways and even areas where aircraft are parked."

The iFerret system, which was certified by the Federal Aviation Administration (FAA) in 2012, helps to identify the presence of foreign objects on airport runways in real time. Aside from compromising safety, foreign object damage can result in flight delays and costly aircraft repairs.

Dr Chew added: "We see vast opportunities for our iFerret system in the international markets, where we will continue to work with local partners to expand our presence."

MIA is a busy airport hub, which saw nearly 41 million passengers in 2014. The group is bullish on the US market in particular, given that major airports can tap government grants to install FOD systems.

Other airports which use the iFerret system include Changi Airport, Dubai International Airport and Hong Kong International Airport as well as a military airbase in the US.

The group said that it expects the contract to contribute positively to its earnings for the current financial year ending March 31, 2016.