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Singapore Technologies Engineering Ltd Aims for High Growth in Robotics

Singapore Technologies Engineering Ltd (SGX: S63) is an engineering conglomerate with a wide variety of business interests.

As a quick background, ST Engineering organises its business into four main divisions: aerospace, electronics, land systems, and marine. Some sectors may have more potential than others.

In ST Engineering’s 2016 annual report, it said:

“Our core businesses in the air, land, sea and electronics segments are fundamentally sound. To further strengthen these core businesses, we will continue to invest in them and at the same time, devote additional resources to other new high growth areas such as robotics and cyber security.”

Today, we will look into ST Engineering’s initiatives in robotics.

The robots are taking over

In April 2015, ST Engineering partnered with Nanyang Technological University to set up a joint research lab to develop advanced robotics and autonomous systems. The joint venture, named ST Engineering-NTU Corporate Laboratory, seeks to improve in areas such as airport operations and disaster rescue.

As part of the announcement, ST Engineering’s electronics division chief Tan Pheng Hock said:

“The vision for the ST Engineering-NTU Corporate Lab is to develop the next generation of robotics and autonomous systems that can be applied to various areas such as healthcare, urban development, transportation, environmental conservation as well as defence and homeland security.”

“These will be solutions that will improve and impact our everyday lives.”

One example would be the development of systems to ferry luggage from the airport’s check-in counter to the baggage claim area. ST Engineering said that airport operations tend to be labour intensive, making up 70% of operation cost. The robotic system may help to improve productivity and safety in baggage handling.

ST Engineering also presented a range of robotic applications in inaugural Singapore International Robo Expo. The company said this in its latest annual report:

“These applications, aimed at helping businesses raise productivity and improve the efficiency of their operations, range from autonomous mobile robots for transportation of materials and supplies to smart logistics solutions that integrate the operations of an automated vertical storage system with Automated Guided Vehicles.”

Like the baggage handling and transport systems, ST Engineering will be looking to improve operational efficiency and productivity. 

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.