ST Engineering has announced organisational changes that it hopes will position the Group for its next phase of growth.
From 1 January 2021, ST Engineering will be reorganised as Commercial and Defence & Public Security clusters, replacing the sector-structure of Aerospace, Electronics, Land Systems and Marine.
The new organisation structure is designed to enable better execution of the Group’s global growth strategy of strengthening its core businesses, and pursuing growth in smart city and international defence businesses. It is also designed for customer-centricity, enabling the business clusters to build deeper and more strategic customer partnerships. This change provides greater effectiveness in resource allocation, and also helps accelerate the development of deeper domain expertise to further enhance the performance of its businesses.
The Commercial cluster will fuel the Group’s international growth through areas in Commercial Aerospace, Urban Solutions and Satellite Communications domains, to be known as Global Business Areas (or GBAs) to reflect the Group’s desire to build global champions. The Commercial Aerospace GBA will continue to drive long-term growth of the aerospace businesses in Aerostructures and Systems, MRO and Aviation Asset Management. Similarly, Urban Solutions and Satellite Communications teams will drive the Group’s smart city business growth. This cluster combines the Group’s smart city technologies and capabilities, which now reside in the four sectors, into one integral unit.
“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,” said Vincent Chong, President & 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.”
“The impetus for this reorganisation was our desire to achieve global success, but COVID-19 has reinforced the need for change with fresh urgency. Even as we keep the Group on an even keel amid challenges presented by COVID-19, we are proactively undertaking this organisation redesign to better position ST Engineering for global growth in the years ahead,” added Vincent.
As part of the change, ST Engineering has created a new leadership structure. The Group will be led by a Group Executive Committee comprising: Vincent Chong, Group President & CEO, Cedric Foo, Group Chief Financial Officer, Lim Serh Ghee, Group Chief Operating Officer, Operations Excellence and Chief Commercial Officer, and Ravinder Singh, Group Chief Operating Officer, Technology & Innovation and President/Head of Defence & Public Security.
The Group Executive Committee will be supported by a Group Senior Business Council and a Group Senior Management Team, composing of select business leaders and corporate function heads.
New Financial Reporting Framework From 2021, the Group’s financial reporting will be based on new operating segments, and will be reflected in its financial results for first half-year ending 30 June 2021. Information on the new segmental reporting framework will be shared in February 2021 when the Group releases its financial results for the year ending 31 December 2020.
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.
