ST Electronics Sets Up JV for Earth Observation Satellite Business



31 May 2011

 

ST Engineering has set up ST  Electronics (Satellite Systems) Pte. Ltd., a joint venture (JV) company with  Nanyang  Technological University (NTU) and DSO National Laboratories (DSO).   The  JV  company  will  design, develop and produce advanced  earth observation  satellites. 

 

ST Engineering’s stake in the JV company is 51%, held  through  ST  Electronics’  wholly  owned  subsidiary,  ST Electronics (Satcom  &  Sensor  Systems)  Pte.  Ltd  while  DSO and NTU own 33% and 16% respectively.  ST Electronics is the electronics arm of  ST Engineering.

The  set-up  of  the  new  subsidiary  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.

ST  Electronics  views the earth observation satellite segment as a new and
complementary  addition to its existing satellite communications and sensor
systems  business.  This new JV company will enable ST Electronics to offer
a more comprehensive suite of satellite and earth observation solutions and
services to its customers.

The set up of ST Electronics (Satellite Systems) marks a major milestone in
the development of an indigenous high-tech satellite industry.  The company
will leverage the research and engineering competencies of both DSO and NTU to  undertake  research,  development  and  manufacturing  of  products
and services  for  advanced  earth  observation  satellites.  Together with the
system  development expertise and global marketing reach of ST Electronics,
the JV will develop satellite technologies in Singapore and take these into
the global market.

ST   Electronics,   with   its   proven  track  record  and  experience in international   business,   sales   and   marketing   management,  will be
spearheading the marketing, business development and operations for the new business.