The prime contract, awarded by the US Marine Corps to SAIC is worth US$121.5 million. This decision to award came after SAIC received the 100-day "stop work" order from the US Marine Corps as the GAO looked into the protest made by one of the competitors, as allowed for in the US tender process.
“The selection of the TERREX 2 is a testament to the proven strengths of the TERREX family as a lethal and highly survivable 8x8 wheeled armoured vehicle platform,” said Ravinder Singh, President of ST Kinetics. “What we have now achieved in TERREX 2 is a testimony to the maturity of our defence engineering expertise, allowing us to compete against established global defence companies.”
TERREX 2 is an 8x8 wheeled armoured ACV with improved mobility that can transport a combat load of up to 11 embarked Marines, and three crew members, through hostile territory. On land, TERREX 2’s independent suspension system improves ground mobility and ride quality for the US Marines. In water, TERREX 2’s hydraulically driven propulsion systems with full independent thrust control authority allows safe operation at Sea-State 3 and through six-foot plunging surf.
ST Kinetics is the land systems arm of ST Engineering. This development 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.