ST Engineering to reorganise into Commercial and Defence & Public Security clusters - Business Times

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ST Engineering to reorganise into Commercial and Defence & Public Security clusters - Business Times

Tue, Nov 17, 2020 - 9:13 PM

MAINBOARD-LISTED ST Engineering will be reorganised into two main clusters from the new year - Commercial, and Defence & Public Security, which replace the sector-structure of aerospace, electronics, land systems and marine.

The change in structure was announced in a regulatory filing on Tuesday, which ST Engineering said will position the group for its next phase of growth, and propel it towards becoming a global technology, defence and engineering powerhouse.

The Commercial cluster will drive the group's international growth in commercial aerospace, urban solutions and satellite communications. This cluster combines into one integral unit the group's smart-city technologies and capabilities, which now reside in the four sectors.

The commercial aerospace team will continue to drive long-term growth of the aerospace businesses in aero structures and systems, maintenance, repair and overhaul (MRO), and aviation-asset management. Urban solutions and satellite communications teams will drive the group's smart-city business growth, said ST Engineering.

The Defence & Public cluster will integrate capabilities in digital systems and cyber, land systems, marine and defence aerospace. This cluster will focus on serving the evolving needs of its customers in defence and public security, and in critical infrastructure segments. It will also continue to pursue growth in international defence, and public safety and security businesses.

Vincent Chong, chief executive of ST Engineering said: "The environment today is one where technological advancements and shifting customer demands are catalysing disruptive business models and rapidly transforming the competitive landscape. The time is now right for us to create a sharper and more agile organisation that will be highly attuned and responsive to our customers' needs in the new world."

The change in organisation will be reflected in its financial results for the first half-year to June 2021, with financial reporting to be based on the new operating segments.

However, it 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, the company said.

The counter rose two cents to S$3.80 on Tuesday, before this announcement.

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