ST Engineering powers ahead on synergies across divisions

SINGAPORE (Nov 15): ST Engineering has often claimed that its business units are synergistic across the board.

The Temasek-owned conglomerate, which has interests in the aerospace, electronics, land systems and marine sectors, has maintained that the various divisions are able to tap on each other’s expertise.

A common example often cited is how its aerospace and marine arms could tap on its electronics division’s data analytics and Internet of Things (IoT) solutions for their repair and building work.

However, it is often not as obvious how the other divisions can tap on the specialised expertise of the aerospace and marine divisions.

Jeffrey Lam, deputy president of ST Engineering Aerospace, explains that there are still synergies to be tapped, even in these niche areas.

“The opportunities continue to reside in the avionics and electronics areas, possibly in future in-cabin networking,” says Lam.

Another synergy across the ST Engineering group, Lam says, is from the aerospace division’s Elbe Flugzeugwerke (EFW) business, which manufactures composite floorboards for all Airbus aircraft.

“These floorboards are high-end and very strong, and certified for aerospace use. But you can use them not just on aircraft, but [also] on other systems,” says Lam.

According to Lam, the floorboards can also be used on other transport systems, such as trains, buses and other vehicles – a possible synergy with ST Engineering’s land systems division.

“We are certainly exploring opportunities that include things like this, especially for middle materials such as floorboards, where you can find applications on multiple platforms” says Lam.

He adds that work is also in progress to build synergies for new acquisitions such as Middle River Aerostructure Systems.

How else is ST Engineering Aerospace powering ST Engineering’s performance? Find out more in this week’s edition of The Edge Singapore (Issue 908, week of Nov 18), available at newsstands now.

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