SINGAPORE (Aug 13): ST Engineering’s new growth will come from smart city products and services. As at June 30, the arms maker had built up an order book of $13.4 billion, with about $2.7 billion worth of contracts to be delivered by year-end. In a sign that the company is decreasing its reliance on military contracts and has garnered more commercial orders, the revenue split, which used to be almost equal, is now 72% for commercial in 2Q, and 28% for defence.

The company’s spear tip into this new market of smart city products and services will be ST Engineering Electronics, the new name of ST Electronics, following a recent rebranding to help grow a more consistent and visible branding for the group.

In the past year, the company has launched a series of smart city-related projects and ventures, not just within Singapore but also in other growth markets. In April, a subsidiary was set up in Chongqing, China to focus on smart city-related projects.

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