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MARINE CUSTOMER TALKCruise vessel repairs demand ahigh level of project managementskills to deliver services of thehighest quality standards as wellas meeting particularly stringenttime requirements.Our ability to secure a contractfrom one of the major cruiseoperators in the world is a finetestimony to the yard’s impeccablereputation for quality workmanshipand a clear indication of howfar we have come in establishingourselves as a preferred yard forcruise vessel repairs in the region.CREATING HISTORY:SECURING FIRST DREDGERJUMBOISATION PROJECTIN SINGAPOREWe have continued to pursue highvalue-added repairs.This hasyielded very positive resultsduring the year, with severalWe were pleased toadd to our clienteleseveral worldrenownedcompanies.Theseinclude RickmersReederei fromGermany, OdfjellASA from Norwayand Star Cruises.Ham310 by 29.2m from 138.2mto 167.4m.The capacity of thedredger was increased by 52%.Western Tug & Barge, PNG,a subsidiary of P&O MaritimeServices, also contracted us tolengthen their general purposeore and fuel oil carrier,WesternStar, and their general purposeore carrier,Western Flyer.ment, MTM Ship Management,Odfjell ASA, among others.MAKING POSITIVE FIRSTIMPRESSIONS WHICH COUNTOur marketing efforts continuedto yield very positive results.We were pleased to add toour clientele several worldrenownedcompanies. Theseinclude Rickmers Reederei fromGermany as well as one of theworld’s largest chemical tankeroperators, Odfjell ASA fromNorway.We are also proud tomention that Star Cruises – thefourth largest cruise operator inthe world was added to our listof esteemed clients during theyear.The Marine sector has beenmaking very positive first impressionson these new customers,bringing them back to our yardafter we completed our firstStolt-Nielsen Transportation Group’s association with ST Marine startedin 1998 with the first tank coating and repair service which ST Marineprovided for our tanker, M/T Stolt Sunrise. Since then, ST Marine hasbeen regularly repairing and maintaining our fleet of chemical tankers. Iam pleased to say that Stolt-Nielsen Transportation Group’s workingrelationship with ST Marine over the last two years has been excellent. Imust commend ST Marine for proving to be such a reliable provider ofship-repair services. The technical competency of your yard has alwaysgiven us trust and confidence in ST Marine’s ship-repair services. Thedifference which sets ST Marine apart from some other yards must be thevery attentive, personal and highly responsive services which STMarine consistently provides. The professionalism and enthusiasm ofyour team in handling our projects, make it attractive working with STMarine. As a leading provider of transportation services to customersworldwide; operating one of the largest fleet of chemical tankers in theworld, Stolt-Nielsen Transportation Group is committed to deliveringbetter and more cost-effective solutions to the increasing challengesfacing our customers globally. It is very gratifying that we are able towork with a partner who is also similarly committed to be a world classservice provider. Stolt-Nielsen Transportation Group’s partnership withST Marine is one, which we will look forward to in the years ahead.OTTO FRITZNERMANAGINGDIRECTOROur pursuit of high value-added repairs have yielded very positive results. During the year, the yard secured a landmarkcontract to carry out the first dredger jumboisation project in Singapore.major conversion projects beingsecured.The Marine sector madehistory when we secured a landmarkcontract from HollandscheAanneming Maatschappij B.V.(H.A.M. B.V.) to carry out thefirst dredger jumboisation projectin Singapore.The yard’s highly regardedtrack record and expertise in thedesign and construction of sophisticatednaval and commercialvessels clearly provided us withan edge in securing this majorproject to lengthen their dredger,Other conversion contractswhich the yard secured includedthat for a side stone dumpingvessel, Jan Steen, for Van OordACZ B.V.BUILDING ON ASTRONG TRACK RECORD:TANK COATINGTank coating continues to be akey focus area for the yard.Weare pleased to report that theyard completed six tank coatingrepair projects for several worldrenownedcustomers includingStolt-Nielsen,Thome Ship Manage-projects for them. RickmersReederei was so impressed withus for the management of its firstrepair project that it soon awardedus a Fleet Contract for therepair of eight vessels betweenApril and August.Another first-time customerthis year was H.A.M. B.V. Thefirst project involved steel renewalof its hopper dredger, P.C.S.VanHattem, which also included partialrenewal of the centre girder ofthe vessel – a job which demandeda high level of technical finesse.THE DIFFERENCE WHICH SETS ST MARINEAPART FROM SOME OTHER YARDS IS THE VERYATTENTIVE, PERSONALAND HIGHLYRESPONSIVE SERVICESSTOLT-NIELSEN TRANSPORTATION GROUPIT CONSISTENTLY PROVIDES94 • vision
The yard’s ability to go on tosecure the conversion contractfrom H.A.M. B.V. to lengthen itsdredger Ham310 speaks volumesfor the very positive first impressionswhich we have made.Odjfell ASA, one of the world’slargest tanker operator, also awardedus a second contract, followingclose on the heels of the first.MOVING UP THE SCALEOF REPAIR SPECIALITYThe Marine sector moved up thescale of repair speciality this yearwith the commencement of maintenancework for the first of theRSN’s submarines, RSS Conqueror.The submarine came into ouryard for repairs in May, officiallyrolling out our maintenance programmefor the RSN’s submarinefleet.To gear ourselves for thisundertaking, we have been postingengineers and technical personnelfor attachments in Sweden.E-ENHANCEDCUSTOMER SERVICEIn 2000, we launched a portal,e-stmarine.com, specially tailoredfor our newbuilding and shiprepaircustomers.Our objective in establishingthis portal is to provide them withquick and easy access to up-todateinformation related to theirprojects at our yard.We believethat our worldwide customerswill appreciate this initiativewhich enhances the value of theservices that we bring to them.LAND BASEDENGINEERINGThe feasibility study, design anddevelopment of a 5000 ton/daypilot plant was in progress duringthe year.Blast door sales were flatas the Housing and DevelopmentBoard (HDB) hasscaled down their buildingprogramme.We will focusour marketing efforts onprivate residential projects.LOOKING AHEADOur way forward in the nearfuture is through building uponour existing strengths.We willcontinue to leverage on ourproven capabilities in ship designand shipbuilding to pursue highvalue-added repairs such as shipconversions.We are confident thatthe ship conversion projects wehave successfully completed overthe years will also provide us witha competitive edge in this marketsegment.We will continue to pursueniche markets such as cruise vesselrepairs, promoting ourselvesas another yard of choice for thegrowing number of cruise shipoperators in the region. Ourimpeccable reputation for consistentlydelivering high qualityproducts and services, as well asour steadily growing track recordin the cruise vessel repair market,will stand us in good stead.Another niche market isdredger repairs.With the scaleof the projects that the Marinesector has undertaken to date, wehave established a very crediblereputation as a specialist yard fordredger repairs.We will aim toensure that our strong presence inthe dredger repair market continuesto grow.Tank coating projects will alsobe pursued to build on the successfultrack record that we haveestablished in this market segment.The Marine sector commenced maintenancework for the first of the RSN’s submarines,RSS Conqueror.OUTLOOKOverall, the company is cautiouslyoptimistic about the shiprepairand shipbuilding industry.WhileChina presents a potential challengein the newbuilding andshiprepair market, Singaporeyards are still dominant in the bigshiprepair market and in moresophisticated conversion worksuch as FPSOs and dredgerjumboisation.It is anticipated that the numberof VLCCs to be scrapped thisyear will exceed 40.This is likelyto have an impact on ourshiprepair business since biggeryards, with a comparatively lowervolume of VLCC repair projects,are expected to encroach into thenon-VLCC segment of theshiprepair market.On a brighter note, the high oilprices are keeping the tanker marketbuoyant, making the tankerrepair market look promising.Theoffshore sector is also showingsigns of picking up, with demandfor offshore supply vesselsstrengthening.This could presentnewbuilding opportunities for us.Our size and capabilities arewell-suited for the niche marketsand, coupled with the marketingsuccesses and track record we havebuilt up, we are confident that theMarine sector will perform wellin the coming year.for those who need something to count onDetails matter.The preceding pagespresented a picture ofST Engg’s activities during2000 and the key statisticsfor the year. In the followingpages, we offer a thoroughbreakdown of the Group’sperformance in figures.Group FinancialPerformancePAGE 98Directors’ ReportPAGE 101Statement by DirectorsPAGE 116Auditors’ ReportPAGE 117Balance SheetsPAGE 118Statements ofProfit & LossPAGE 120Statements ofChanges in EquityPAGE 121Consolidated Statementof Cash FlowsPAGE 123Notes to the FinancialStatementsPAGE 126Additional InformationPAGE 176Board Composition& CommitteesPAGE 180I N S I D EShareholding StatisticsPAGE 181Share Prices andTurnoverPAGE 182Review of FinancialPerformance:Aerospace,Electronics,Land Systems,MarinePAGE 183Subsidiaries andAssociated CompaniesPAGE 203Corporate InformationPAGE 208Directors’ InformationPAGE 209Corporate DirectoryPAGE 211Notice of Fourth AGMPAGE 221Letter to ShareholdersPAGE 223Proxy FormPAGE 22596 • visionby the numbers • 97
Page 1 and 2: S I N G A P O R E T E C H N O L O G
Page 4 and 5: editor’s noteC O N T R I B U T O
Page 6 and 7: “Opportunities Abound forNiche Pl
Page 8 and 9: Helping OthersLADY WHO MAKESA DIFFE
Page 10 and 11: NOV29 DECS$2.79JANJUNJULAUGOCTYEAR
Page 12 and 13: Turnover (S$ million)Profit before
Page 14 and 15: ECONOMIC VALUE ADDED STATEMENTS (S$
Page 16 and 17: T H E E - L I S TT H E E - L I S Ts
Page 18 and 19: It was a good year for ST Engg, wit
Page 20 and 21: GROUP TURNOVER INCREASED FROM S$1.7
Page 22 and 23: THE NEXTSTEPSvision chats with ST E
Page 24 and 25: We must take globalisation seriousl
Page 26 and 27: B O A R D • O F •D I R E C T O
Page 28 and 29: D I R E C T O R S• AEROSPACE• E
Page 30 and 31: T H E • S E N I O RM A N A G E M
Page 32 and 33: M A N A G E M E N Thuman resource b
Page 34 and 35: O U R U S T H R U S TALL SYSTEMS GO
Page 36 and 37: WE HAVE GOOD REASONSto be pleased w
Page 38 and 39: AEROSPACE CUSTOMER TALKAIR VICE MAR
Page 40 and 41: R E : V I E WElectronicsBy Seah Moo
Page 42 and 43: P A R T N E R SFORMING PARTNERSHIPS
Page 44 and 45: The ATTC created a splash when it w
Page 46 and 47: LAND SYSTEMS CUSTOMER TALKMARINE CU
Page 50 and 51: GROUP FINANCIAL PERFORMANCE1. ACQUI
Page 52 and 53: TRANSFERS TO OR FROM RESERVES AND P
Page 54 and 55: RELATED CORPORATIONSHOLDINGS IN THE
Page 56 and 57: The SGX’s Listing Manual requires
Page 58 and 59: BALANCE ASAT 1.1.2000 BALANCE NO. O
Page 60 and 61: BALANCE SHEETSAS AT 31 DECEMBER 200
Page 62 and 63: STATEMENTS OF CHANGES IN EQUITY (co
Page 64 and 65: NOTES TO THE FINANCIAL STATEMENTS31
Page 66 and 67: Included in the share capital is a
Page 68 and 69: 8. FIXED ASSETS (cont’d)THE GROUP
Page 70 and 71: EFFECTIVE EQUITYINTEREST HELDBY THE
Page 72 and 73: COUNTRY OF INCORPORATION/NAME OF SU
Page 74 and 75: PROVISION FOR DIMINUTION IN VALUE O
Page 76 and 77: (b) Details of joint ventures are a
Page 78 and 79: 13. STOCKS AND WORK-IN-PROGRESS14.
Page 80 and 81: 20. DUE FROM RELATED CORPORATIONS21
Page 82 and 83: Lease terms do not contain restrict
Page 84 and 85: GROUPCOMPANY2000 1999 2000 1999NOTE
Page 86 and 87: GROUP2000 1999NUMBER OF SHARES (’
Page 88 and 89: 45. SEGMENT INFORMATION (cont’d)L
Page 90 and 91: their audit to the independent dire
Page 92 and 93: SINGAPORE TECHNOLOGIES ENGINEERING
Page 94 and 95: AEROSPACE SECTOR VALUE ADDED STATEM
Page 96 and 97: ELECTRONICS SECTOR BALANCE SHEETSEL
Page 98 and 99:
international recognition as a majo
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REVIEW OF FINANCIAL PERFORMANCE - M
Page 102 and 103:
MARINE SECTOR FINANCIAL HIGHLIGHTS1
Page 104 and 105:
SINGAPORE TECHNOLOGIES KINETICS LTD
Page 106 and 107:
Professor Lui Pao Chuen is the Chai
Page 108 and 109:
Contacte-mailContacte-mailASSOCIATE
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MARINE SECTORASSOCIATED COMPANIESNO
Page 113 and 114:
PROXY FORMSINGAPORE TECHNOLOGIES EN
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end page• AEROSPACE• ELECTRONIC
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