ST Engineering will be reorganising itself into two main units, as it ditches the land, sea, air and electronics sector-based structure that has defined the company for decades.
With effect from the new year, ST Engineering will be reorganised as commercial and defence and public security clusters.
According to the company, the new organisation structure is designed to enable better execution of its global growth strategy of strengthening its core businesses, and pursuing growth in smart city and international defence businesses.
“In the last three years, we were focused on delivering results by executing our strategy of strengthening our core businesses, and pursuing growth in smart city and international defence businesses,” says Vincent Chong, president and CEO of ST Engineering.
“The environment today is one where technological advancements and shifting customer demands are catalysing disruptive business models and rapidly transforming the competitive landscape. The time is now right for us to create a sharper and more agile organisation that will be highly attuned and responsive to our customers’ needs in the new world,” he adds.
Under the new structure, the commercial cluster take care of potentially fast-growing business in commercial aerospace, urban solutions and satellite communications.
See: ST Engineering partners Polyverse to provide secure operating systems for mission-critical platforms
It will also include the existing aerospace businesses in aerostructures and systems, maintenance, repair and overhaul, and aviation asset management.
This cluster will be led by Lim Serh Ghee, who will be named group chief operating officer, operations excellence and chief commercial officer.
The defence and public security cluster, on the other hand, will combine the capabilities of digital systems and cyber, land systems, marine and defence aerospace.
This cluster will be led by Ravinder Singh, who will be group chief operating officer, technology and innovation and president/head of defence and public security.
Chong the CEO, will take on new job title: group president and CEO. Together with Lim and Ravinder, and group CFO Cedric Foo, the four men will form the company’s group executive committee.
With this reorganisation, ST Engineering’s financial reporting will be based on new operating segments and be reflected for the first time in its half-year ending June 30 2021.
This reorganisation 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.
Shares of ST Engineering closed on Nov 17 at $3.80, up 2 cents.
