Singapore Technologies Engineering Ltd (ST Engineering) announced today that its US subsidiary, VT Halter Marine, Inc. (VT Halter Marine), has formed ZHR Marine, LLC (ZHR Marine), a joint venture with Raytheon Company and Zamil Group, in the Kingdom of Saudi Arabia.
The issued and paid up capital of ZHR Marine is Saudi Riyal SR3m (approximately US$0.8m or S$1.1m), with each holding one-third of the shareholding.
ZHR Marine’s three founding companies offer capabilities in shipbuilding and systems integration as well as extensive experience across sea and shore-based sensors and weapons. The partnership will leverage the experience of VT Halter Marine in the construction of naval vessels, the in-Kingdom shipbuilding capability of the Al Zamil Group, and Raytheon’s broad portfolio of naval systems and weapons, and ship systems integration expertise. The JV is set up for the purpose of bidding for projects under the Royal Saudi Naval Force (RSNF) Eastern Fleet Modernisation Programme, which requires local content.
The setting up of this joint venture 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.