ST Engineering wins US Navy $1 bil contract to build icebreaking cutter
SINGAPORE (Apr 24): ST Engineering has won a contract from the US Department to build a polar icebreaking cutter through its US-based shipbuilder VT Halter Marine.
Under the contract, VT Halter Marine will be the prime contractor for the US$746 million ($1 billion) fixed-price incentive-firm contract to design and construction of the US Coast Guard (USCG) Polar Security Cutter (PSC).
The PSC contract is a multi-year programme to acquire up to three multi-mission PSCs to recapitalise the USCG fleet of heavy icebreakers.
The United States has vital national interests in the polar regions. PSCs enable the US to access to the Arctic and Antarctic regions all year round; maintain defence readiness in the region.
This contract includes options which, if exercised, would bring the cumulative value of this contract to US$1.9 billion. The first ship delivery is scheduled to occur in 2024.
If the options are exercised, the second and third vessels are expected to be delivered in 2025 and 2027 respectively.
The vessels are 460 feet in length with a beam of 88 feet overall, a full load displacement of about 33,000 long tons at delivery.
VT Halter Marine was involved in the design analysis study of the PSC since February 2017 and is currently in the production engineering studies support work since February.
The above developments are 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.
