President and CEO of Singapore Technologies Engineering, Tan Pheng Hock

Courtesy ST Engineering

Singapore Technologies Engineering (ST Engineering) prides itself on its ability to behave like a compact and versatile start-up, even though it’s a global company.

A highly-integrated company with core competencies in aerospace, land systems, electronics, and marine engineering, ST Engineering has drawn upon its agility, compactness and versatility to deliver another strong performance, despite tenuous global market conditions over the past year.

President and CEO, Tan Pheng Hock regards the U.S.-Singapore Free Trade Agreement as a positive step for his company and its American customers. Lower tariffs will mean more trade. In his business, where speed of overseas delivery is of the essence, anything that facilitates quick movement of products and components is very beneficial.

One of its subsidiary companies, ST Aero, is one of largest independent aircraft maintenance and engineering facilities in the U.S., servicing numerous companies such as Boeing Aircraft, Federal Express and Japan Airlines. ST Aero is the largest single employer in Mobile, Alabama with 2,000 employees.

One of the leading facilities in the U.S., the Mobile aerospace facility is capable of accommodating seven wide-body and eight narrow-body aircraft simultaneously.

After developing the A-4 Super Skyhawk and various successful F-5 Tiger upgrade programs, ST Engineering is now focusing on the F-16 Falcon One suite, in partnership with Lockheed Martin and BAE Systems.

In April 2002, ST Engineering acquired Dee Howard Aircraft Maintenance, a leading aircraft maintenance, repair and overhaul facility in San Antonio, Texas.

Consolidation in the worldwide defense industry, resulting in fewer and more prominent global players, has made it increasingly difficult for small companies to compete. This trend, however, has helped feed the expansion of another subsidiary, ST Kinetics.

ST Kinetics produces a variety of military vehicles such as the Bronco All Terrain Tracked Carrier recently delivered to the Singapore Armed Forces; the Flyer, a fast and deadly light-strike vehicle easily transported internally by helicopters; the Bionix Infantry Fighting and Infantry Carrier Vehicles; the SAR 21 Assault Rifle; and 40 mm and 155 mm families of ammunition products among others.

The Bronco All Terrain Tracked Carrier (ATTC)

Photo Paul Douglass

SAR Assault Rifle with built-in laser aiming device

Courtesy ST Engineering

The Bionix Infantry Fighting Vehicle, short-listed but not selected for use by the U.S. Army earlier this year, is a highly-versatile all-terrain fighting machine that contains over 60 percent U.S.-made components. The highly maneuverable carrier has capacity for nine and can fit inside a C-130 transport aircraft. "The Pentagon wanted wheels and the Bionix Vehicle has tracks," explains Brig. General Patrick Choy, Chief Marketing Director.

Another leading-edge product, the SAR Assault Rifle, is the first in its class to incorporate a built-in laser aiming device.

"Greater mobility and lethality, longer ranges, autonomous operations and new technologies will be the key requirements of tomorrow’s battlefield. Our new generation developments, leveraging cutting-edge engineering solutions, will bring tremendous value-added to the technology partnerships and global strategic alliances that we have established the world over. Today, we are better ready than ever before to create and take on new markets around the world," says Tan Pheng Hock, President & CEO.

Under a Memorandum of Understanding signed in June 2002, ST Engineering’s subsidiary, ST Electronics, and Honeywell International will work jointly on developing aviation safety and security solutions, and thereafter market them globally after successful testing. ST Electronics, one of the largest electronics engineering firms in Asia, serves defense, commercial and industrial customers.

Finally, ST Marine is a shipbuilding and ship repair service provider that operates in America, Europe, Asia and the Middle East. Following the company mantra of "compact yet versatile,” ST Marine produces the 141m Landing Ship Tank (LST), one of the most sophisticated support vessels available to the world’s navies. In addition to incorporating day and night take off and landing facilities for two 10-ton helicopters, the LST provides a variety of sophisticated navigation and communications systems, anti-surface, and anti-air self-defense systems.

By teaming up with local partners for joint bidding on defense projects, ST Engineering hopes to strategically penetrate the U.S. market and to jointly develop new technologies, alongside U.S. companies. The strategy is "Think international, go local." Mr. Tan says. Right now, he says, the company is looking for U.S. companies that make component subsystems.

Already the company employs a total of 2,300 people in the U.S. of which only ten are Singaporeans. "We see our investment in the U.S. [already at over $100 million] as long term," he says.

As U.S. defense spending increases, ST Engineering sees itself poised to fulfill evolving needs with a wide range of light and mobile equipment designed to support the rapid deployment and special forces operations maintained by the U.S. and European militaries.

Heading up the group’s U.S.-based operations from Alexandria, VA, is retired four-star general, John Coburn, with the goal of growing ST Engineering’s U.S. arm, Vision Technologies (VT) Systems, Inc. into a major industry player in America.

VT Systems is a "one-stop provider" of integrated engineering solutions for the aerospace, electronics, land systems and marine industries and oversees ST Engineering’s U.S. operations.

ST Engineering’s greatest overall strength is in developing "compact, light-weight, low-mending, products," says CEO Tan. Thus, the company is "in a slightly different league than others who are very good at the very sophisticated, very heavy, very complex sort of requirements."

"Because we are small, less bureaucratic, and occupy an area that not many people do, we can work very well with American companies who would like to look at certain products for future combat systems. We can be their subcontractor, their licensor, their partner." Versatility is just one aspect of the company’s can-do spirit. "We will get it done, and get it done well," says Tan.

Tan sees many opportunities for continued growth. "In the long haul," he says, "the U.S. will be increasingly more important to us as we grow our operations."

Tan also believes in the link between creativity in engineering and in the arts. "The arts can play a large role in encouraging creativity," he says. That is why ST Engineering has become a sponsor of the Esplanade, the new performing arts complex in Singapore.

Based in Singapore, the company has 11,000 employees worldwide and revenues of about $1.45 billion in FY 2001.

For further information about Singapore Technologies Engineering, see www.stengg.com.