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| RSS Archer |
Singapore, 3 April 2012 – Singapore Technologies Engineering Ltd (ST Engineering) today announced that its marine arm, Singapore Technologies Marine Ltd (ST Marine), has partnered with Swedish Kockums AB (Kockums) to form a joint venture company (JVC) called Fortis Marine Solutions Pte. Ltd. (Fortis Marine Solutions).
ST Marine will hold 51% stake in Fortis Marine Solutions and Kockums the remaining 49% stake. ST Marine and Kockums will inject $510,000 and $490,000 respectively as equity into the new JVC. Consequent to its incorporation, Fortis Marine Solutions is now a subsidiary of ST Marine.
ST Marine and Kockums have a long standing partnership managing several contracts for the Republic of Singapore Navy’s (RSN) submarines. The RSN’s Challenger and Archer classes of submarines were designed, constructed, tropicalised and delivered by Kockums; while ST Marine has been providing up to Depot level maintenance of the submarines. The JVC is formed with the primary objective of providing a higher level in-country capability in the refitting and life cycle support services for the submarine fleet of RSN.
“Kockums is proud to have been supplying the RSN with advanced naval solutions, since 1995. Fortis Marine Solutions is an important widening of our activities in Singapore and a strong sign of our long-term commitment to provide the RSN with the best support throughout the life time of our products. We look forward to establish this in-country capability together with our qualified partner ST Marine.” ~ Ola ALFREDSSON, Chief Executive Officer, Kockums AB
“We are confident that the design and systems engineering capability of Kockums, combined with ST Marine’s skilled workforce capability will result in maintenance regimes that ensure high availability, safety and readiness for RSN.” ~ NG Sing Chan, President, ST Marine
The set up of Fortis Marine Solutions 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.