Singapore Technologies Engineering Ltd (ST Engineering) today announced that its electronics arm, Singapore Technologies Electronics Limited (ST Electronics), has set up a subsidiary, ST Electronics do Brasil Serviços e Soluções em Sistemas Eletronicôs Ltda, in Brazil.
ST Electronics holds 99% stake in the new subsidiary, with the remaining 1% stake held by its wholly owned subsidiary, ST Electronics (SatCom & Sensor Systems) Pte. Ltd. ST Electronics do Brasil Serviços e Soluções em Sistemas Eletronicôs Ltda, based in Sao Paulo, will have a paid up capital of US$2m (about S$2.55m).
Brazil is an important emerging economy and the setting up of the Brazilian subsidiary marks an important step forward in ST Electronics’ marketing strategy for entry into that market. ST Electronics has identified opportunities for potential growth in Brazil.
With a local presence there, ST Electronics will be able to work more closely with in-country partners, pursue potential projects and respond quickly to opportunities that will arise, such as those urban solutions relating to large scale electronics systems like intelligent transport and metro rail.
The setting up of the new subsidiary 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.