ST Engineering obtains US Navy contract for as much as S$2.6 billion

Singapore five-dollar note Photo by Leslie Shaffer

ST Engineering obtained a U.S. Navy contract for the Polar Security Cutter ice breaker in a deal which could be worth as much as US$1.94 billion, or around S$2.6 billion, the defense company said in a filing to SGX Wednesday.

The contract was awarded to VT Halter Marine, ST Engineering’s shipbuilding business in Pascagoula, Mississippi, as the prime contractor, the filing said.

The deal includes an initial US$745.94 million fixed-price contract for the detail design and construction of a U.S. Coast Guard Polar Security Cutter (PSC), which was previously called a Heavy Polar Ice Breaker, ST Engineering said.

The PSC contract is a multi-year program which may include the acquisition of up to three multi-mission PSCs, the filing said.

Options on the contract, if exercised, could bring the value to US$1.94 billion, it said.

The first ship delivery is expected in 2024, and if the options are exercised, the second and third vessels are expected to be delivered in 2025 and 2027 respectively, ST Engineering said.

 

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