ST Engineering

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Singapore Technologies Engineering Ltd
Public
Traded as SGX: S63
Industry Engineering, Defense
Founded 1967 (as Chartered Industries of Singapore)
Headquarters Singapore
Key people
Vincent Chong
(President & CEO)[1]
Products Commercial and Military Aerospace
Electronics and Infocomm Technologies
Naval and Commercial Shipbuilding
Defence
Land Systems
Revenue Increase$6.34 billion SGD (2015)
Increase$529 million SGD (2015)
Owner Temasek Holdings (50.14%)
Number of employees
23,000 (2016)
Divisions VT Systems
Subsidiaries ST Kinetics
ST Aerospace
ST Marine
ST Electronics
ST Dynamics
Website www.stengg.com

ST Engineering (Singapore Technologies Engineering Ltd) is an integrated engineering group providing solutions and services in the aerospace, electronics, land systems and marine sectors. Headquartered in Singapore, the Group reported revenue of $6.34b in FY2015, ranks among the largest companies listed on the Singapore Exchange, and is one of Asia’s largest defence and engineering groups. It is a component stock of the FTSE Straits Times Index, MSCI Singapore and the SGX Sustainability Leaders Index. ST Engineering has about 23,000 employees worldwide, and over 100 subsidiaries and associated companies in 46 cities across 24 countries.[2]

History[edit]

ST Engineering's history began with its precursor, the Chartered Industries of Singapore, which was established in 1967 by the newly-independent Singaporean government as an ammunition manufacturer. Businesses related to aerospace and shipbuilding were later created and put under the ST umbrella. The ST group of companies went commercial in 1990, setting up its first commercial airframe manufacturing, repair and overhaul facilities in Singapore and the United States. ST Engineering was created in December 1997 as a merger of four listed companies: ST Aerospace, ST Electronics, ST Kinetics and ST Marine. Its shares debuted on the Singapore Exchange in 8 December 1997.[3][4]

Since then, ST Engineering has grown to become one of Asia's largest defence and engineering groups offering integrated and advanced solutions for commercial and defence organisations across multiple industries.[5] In Mar 2007, ST Engineering was ranked 19th in the aerospace & defence industry and 1,661th of 2,000 of the world's largest public companies by Forbes.[6]

Areas of business[edit]

ST Engineering is a major player in the defence and military industry. It was ranked number 53 in the Stockholm International Peace Research Institute's list of the world's top 100 defence manufacturers in 2015.[7] Outside of Singapore, it has sold defence products to over 100 countries,[8] including United States, United Kingdom, Indonesia, Philippines, United Arab Emirates, Brazil, Sweden, India, Thailand and Finland.[9] ST Engineering has a global network of over 100 subsidiaries and associated companies in 46 cities across 24 countries in the Americas, Asia, Europe and the Middle East.[2]

Its United States headquarters is VT Systems, formerly known as Vision Technologies Systems (VTS), set up in 2001 in Virginia, near Washington, D.C. VTS oversees subsidiaries and affiliates throughout the continental US and in Canada.

China is also an important market for the Singapore Technologies Engineering group, where it has presence in the aerospace, electronics and land systems sectors and plans to further expand its businesses there, including the marine sector. The group's key operations in China comprise an aircraft MRO facility in Shanghai; an IT software development in Shenzhen and R&D centre in Shanghai; automotive maintenance centres in Guangzhou and Hangzhou; and factories in Beijing and Guiyang to produce specialty vehicles for the construction and mining industries. The group also has representative offices in Beijing, Hong Kong, Guangzhou, Shanghai, Shenzhen and Chengdu. The group also has representative offices in India and Kazakhstan.

As of March 3, 2014, Capital Group Companies has a 5.5166% shares in ST Engineering.[10]

Core capabilities[edit]

ST Engineering offers numerous services and products through its four strategic business areas in aerospace, electronics, land systems and marine transport.[11]

ST Aerospace[edit]

Main Article: ST Aerospace

ST Aerospace provides "total aviation support" to commercial airlines, airfreight operators and military operators.[11] It is the world’s largest airframe maintenance, repair, and operations (MRO) company, and one of the few with in-house engineering design and development capabilities.[12]

According to ST Engineering, the core capabilities of ST Aerospace in the aerospace sector include aircraft maintenance and modification, component total support, engine total support, aviation and training services, and aerospace engineering and manufacturing.[11]

ST Electronics[edit]

ST Electronics, the electronics arm of ST Engineering, provides electronics and information communications technologies solutions in the Asia-Pacific region. It provides end-to-end systems, solutions and services in the three business areas of transportation systems and solutions, satellite and broadband communications and advanced electronics and information communications technologies solutions.[11]

According to ST Engineering, the core capabilities of ST Electronics in the electronics sector include communications and sensor systems, large-scale systems and software systems.[11]

ST Kinetics[edit]

Main Article: ST Kinetics

ST Kinetics handles land systems and specialty vehicles. According to ST Engineering, the core capabilities of ST Kinetics in the land systems sector include smart defence solutions, productive specialty vehicles, complete power solutions and total support services.[11]

ST Marine[edit]

ST Marines provides turnkey shipbuilding, ship conversion and ship-repair services. According to ST Engineering, the core capabilities of ST Marine in the marine sector include project management, in-house ship design expertise, shipbuilding expertise, ship maintenance and repair, and environmental solutions.[11]

Manufacture of anti-personnel mines[edit]

Originally set up as a weapons supplier for the Singapore Armed Forces, ST Engineering was one of the few companies in the world that continued to manufacture anti-personnel land mines[13] and has been excluded from the Norway State Pension Fund, the New Zealand Superannuation Fund, and the Netherlands' ABP for the "production of weapons that through their normal use may violate fundamental humanitarian principles".[14]

As of 2015, ST Engineering is no longer in the business of designing, producing and selling of anti-personnel mines and cluster munitions or any related key components.[citation needed]

Corruption scandal[edit]

In 2014, ST Engineering and its subsidiaries ST Maine and ST Aerospace were hit by one of the largest corruption scandals in Singapore history following investigations by the Corrupt Practices Investigation Bureau.[15][16][17]

In December 2014, former ST Marine and ST Aerospace president, Chang Cheow Teck, was charged with conspiring with two subordinates to offer bribes in return for ship-repair contracts between 2004 and 2010.[18] The corruption charges were eventually withdrawn and in January 2017, Chang pled guilty to "failing to use reasonable diligence in performing his duties" and was given a short detention order of 14 days.[15] Former ST Marine CEO and president See Leong Teck was also charged with seven counts of corruption.[18] In December 2016, See was sentenced to 10 months' jail and a $100,000 fine.[16]

Since then, six other former ST Marine senior executives were implicated in the corruption scandal, including ex-senior vice-president Teh Yew Shyan who is deceased,[18] former financial controller and senior vice-president of finance Ong Tek Liam who pled guilty to ten out of 118 charges in relating to the falsification of accounts,[19], former senior vice-president Mok Kim Whang who pled guilty to 49 out of 826 corruption charges,[17] ex-chief operating officer Han Yew Kwang who pled guilty to 50 out of 407 charges and was sentenced to six months' jail and fined $80,000,[20] former president of commercial business Tan Mong Seng who faced 445 corruption charges[21] and was sentenced to 16 weeks' jail,[17][22] and ex-financial controller Patrick Lee Swee Ching who pled guilty to seven of 38 charges of conspiring with others between 2004 and 2007 to make false entries in petty cash vouchers, and was given the maximum fine of $210,000.[23]

Several former employees and two board members have also implicated in the corruption scandal.[18][16]

See also[edit]

References[edit]

  1. ^ "ST ENGINEERING CEO TAN PHENG HOCK STEPS DOWN". Retrieved 15 September 2016. 
  2. ^ a b "ST Engineering Ltd". Singapore Technologies Engineering Ltd. Retrieved 2016-11-10. 
  3. ^ Boey, Dylan. From bullet maker to defence tech giant. AsiaOne. 30 December 2007.
  4. ^ Lee Xin En. Tanks for the memories: ST Engineering turns 50. The Straits Times. 27 January 2017.
  5. ^ Nikkei Asian Review: Singapore Technologies Engineering Ltd.. The Nikkei.
  6. ^ "The World's 2,000 Largest Public Companies". Forbes. 2007. Retrieved 2008-01-10. 
  7. ^ THE SIPRI TOP 100 ARMS-PRODUCING AND MILITARY SERVICES COMPANIES, 2015. Stockholm International Peace Research Institute. December 2016.
  8. ^ ST Engineering: Global Presence.
  9. ^ Jaipragas, Bhavan. Singapore gains toehold in world arms industry. Yahoo! News. 19 March 2012.
  10. ^ http://www.stengg.com/investor-relations/shareholding-statistics
  11. ^ a b c d e f g Corporate profile (ST Engineering). Singapore Press Holdings.
  12. ^ Tegtmeier, Lee Ann. "Aviation Week Ranks Biggest MRO", 26 June 2013
  13. ^ [1]
  14. ^ http://www.the-monitor.org/index.php/publications/display?url=lm/2007/singapore.html
  15. ^ a b Ng Huiwen. Former ST Marine president given short detention order, corruption charges withdrawn. The Straits Times. 5 January 2017.
  16. ^ a b c Hussain, Amir. Graft scandal: Ex-ST Marine CEO jailed 10 months, fined. The Straits Times. 3 December 2016.
  17. ^ a b c Leong, Grace. Two ex-ST Marine execs plead guilty to bribery, making false expense claims. The Straits Times. 27 August 2016.
  18. ^ a b c d Huang, Claire. Former president of ST Marine charged, along with two ex-employees. The Business Times. 12 December 2014.
  19. ^ Chelvan, Venessa Paige. Former ST Marine financial controller pleads guilty in corruption case. Channel NewsAsia. 19 February 2016.
  20. ^ Hussain, Amir. Former ST Marine exec in graft scandal gets 6 months' jail, $80k fine. The Straits Times. 31 August 2016.
  21. ^ Malinda, Kyle. Two more former ST Marine senior executives charged for corruption. Channel NewsAsia. 1 July 2015.
  22. ^ Chong, Elena. ST Marine graft case: Ex-exec sentenced to 16 weeks' jail. The Straits Times. 7 April 2017.
  23. ^ Chong, Elena. Ex-ST Marine exec fined $210k in graft case. The Straits Times. 2 July 2015.

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