SINGAPORE --- ST Engineering today announced that its land systems arm, ST Kinetics, has won a contract worth US$20.9m (about S$29.4m) from the Brazilian Navy for the supply of 5 units of 40mm L70 naval gun and an associated Integrated Logistics Support (ILS) package.
The contract was signed between the Brazilian Navy and Allied Ordnance of Singapore (Pte) Ltd (AOS), a wholly owned subsidiary of ST Kinetics. Delivery will begin in the last quarter of 2011 and is expected to be completed by end 2013.
This contract is the second that AOS has received from the Brazilian Navy. Two units of 40mm L70 naval gun with ILS package were ordered in 2007. Delivery of the first gun is currently in progress and will be installed on a Brazilian Navy patrol vessel.
Both contracts were won amidst strong competition from established global players. ST Kinetics' 40mm L70 NADM330 naval gun features a full electric drive aiming system with brushless motors that enable quick and accurate target tracking; battery powered operation that allows immediate and ever-ready activation; and 101 ready-to-fire rounds in a dual compartment magazine that provides immediate selection between two types of ammunition and ample ammunition for engagements without reloading. These class leading features of the gun give it the capability to instantly engage aerial and surface targets simultaneously.
"The Brazilian Navy's second order of ST Kinetics' 40mm L70 naval guns amidst keen competition reflects their confidence in the quality and performance of our solution. We are delighted with this latest order and will ensure that we exceed all expectations of the esteemed Brazilian Navy,” says SEW Chee Jhuen, President, ST Kinetics.
This contract is not expected to ha ve any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.
AOS (Allied Ordnance of Singapore (Pte) Ltd) is a wholly owned subsidiary of ST Kinetics. It provides air defence weapon systems and ammunition for land and naval applications. Its capabilities include production, systems integration and maintenance of naval ordnance systems.
ST Kinetics (Singapore Technologies Kinetics Ltd) is the land systems and specialty vehicles arm of ST Engineering. It delivers integrated land systems, specialty vehicles and their related through life support for defence, homeland security and commercial applications.
ST Engineering's Land Systems Arm Secures Naval Gun Contract from Brazilian Navy