ST Kinetics wins $42 million contract for demilitarisation of ammunition for an African country

ST Engineering today announced that its land systems arm, ST Kinetics, has been awarded a EUR 30.13m (about S$58.8m) contract for the demilitarisation of ammunition for a country in Africa. The contract involves the supply of specialised equipment and related services, such as training and operations assistance. The first delivery is scheduled to be completed in the second half of 2010, with the final delivery expected within the first half of 2012. Ammunition demilitarisation involves destroying the inherent capabilities of the ammunition through a series of processes such as disassembly, size reduction, melt-out of explosives and incineration of non-recyclable explosives. Recyclable materials such as projectiles and brass cases are then recycled or sold in the secondary market as scraps. "This is an important endorsement of our demilitarisation services. We are pleased that the customer has shown confidence in our solution. We will continue to explore opportunities in demilitarisation and work closely with our customers to value add to their operations," said SEW Chee Jhuen, President, ST Kinetics. This contract 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.