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STE marine unit poised to land contract valued up to S$400m

The Business Times by TAN HWEE HWEE


THE marine arm of defence and engineering group, Singapore Technologies Engineering (STE), is poised to clinch a contract valued at under S$400 million with Singapore's Police Coast Guard (PCG).

ST Marine was named winner in a public tender for a shipbuilding and maintenance contract for the firm order of a dozen patrol boats.

The contract comes with three options, including the supply and delivery of five further patrol boats, a GeBiz record showed.

It also calls for maintenance of the patrol boats for a firm period of 15 years plus an option to extend for three further years.

All in, ST Marine's winning bid that was quoted in multiple currencies, worked out to between S$200 million and S$400 million.

The marine business unit was bidding against at least five other shipbuilders - Damen Shipyards, Lung Teh Shipbuilding, Naval Group Far East, Odyssey Marine and Strategic Marine.

The Business Times understands that this is the most significant shipbuilding contract win for ST Marine's shipyard in Singapore in months.

In December 2016, ST Marine announced it was awarded, through a joint bid with Penguin International, a shipbuilding contract with Singapore Civil Defence Force for three rescue vessels, two smaller aluminium boats and one heavy marine fire vessel.

Penguin is said to be building the two smaller aluminium boats while ST Marine is undertaking construction work on the third steel vessel.

But with the latest PCG shipbuilding contract, ST Marine would take up construction of aluminium boats for the first time in years, sources said.

ST Marine declined comment on the contract value or details, but its president, Ng Sing Chan said: "We are delighted to be designing and building these vessels for the Singapore Police Coast Guard (SPCG) and doing our part to support the nation."

For the third quarter ended Sep 30, ST Marine posted a 35 per cent drop in net profit to S$12.8 million on a 16 per cent decline in revenue.

Shares of mainboard-listed parent STE finished four cents lower at S$3.46 on Thursday.