ST Engineering wins £9.5m 40mm ammunition contract from UK MoD

Singapore Technologies Engineering Ltd (ST Engineering) today announced that its land systems arm, Singapore Technologies Kinetics Ltd (ST Kinetics), has secured a contract of about £9.5m (S$20.7m) from the UK Ministry of Defence (UK MoD) for the supply of 40mm ammunition. The contract was signed with Advanced Material Engineering Pte. Ltd. (AME), a subsidiary of ST Kinetics. Delivery is to begin in the second half of 2009 and to be completed in first half of 2011. This contract from the UK MoD is for the supply of 40mm High Velocity Target Practice Tracer (HV TPT) rounds. ST Kinetics has been supplying 40mm ammunition to the UK MoD since 2002. Last year, it had announced two 40mm ammunition contracts from UK MoD worth a total of about S$120m. Recently, on 27 April 2009, ST Kinetics announced a EUR 8m (about S$15.6m) 40mm ammunition contract awarded by the Swedish Defence Materiel Administration, Försvarets Materielverk. ST Kinetics is today the world's leading provider of 40mm grenade solutions offering various 40mm grenade launcher weapon systems and an unparalleled range of 40mm ammunition including high and low velocity, high explosive, enhanced blast, self-destruct, air bursting, surveillance, insensitive and less-than-lethal rounds. "We are very pleased with the UK MoD's continued confidence in our 40mm ammunition. This latest order attests to the high standard and quality of our 40mm products. As one of the world's leading 40mm solutions providers, we will continue to innovate and deliver class-leading 40mm solutions to our global customers," said SEW Chee Jhuen, President, ST Kinetics. This contract 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.