SINGAPORE (March 22): ST Engineering's land systems arm, ST Kinetics, has been awarded a contract by the Singapore Ministry of Defence (MINDEF) for the production and supply of the Next Generation Armoured Fighting Vehicle (AFV).

The new AFV will replace the ageing ULTRA M113 AFV, which has been in service since the early 70s, MINDEF said in a press release on Wednesday.

The 29-tonne tank, which can reach a top speed of 70km/h, will operate alongside the Singapore Armed Forces’ Bionix Infantry Fighting Vehicle.

MINDEF adds that the Next Generation AFV, which was developed together with the Defence Science and Technology Agency (DSTA), “will provide our armoured forces with enhanced firepower, protection, mobility and situational awareness.”

“It is also a demonstration of our continuous drive to meet the current and future operational requirements of the Singapore Army,” says ST Kinetics president Ravinder Singh.

Under the contract, ST Kinetics will also provide integrated logistics support which includes spares, training and documentation.

ST Engineering is expected to commence delivery of the new AFV in 2019.

The total value of the contract was not revealed. ST Engineering says it is required to observe confidentiality under the MIDEF contract and unable to disclose any further details.

The contract is not expected to have any material impact on its consolidated net tangible assets per share and earnings per share for the current financial year.

Shares of ST Engineering closed 4 Singapore cents lower at S$3.63 on Wednesday.