Online copy here:
GUNNING FOR THE BIG MONEY
DIFFERENT GUNS FOR EVERY NEED
By Ho
Lian-yi
February 18, 2008
FORGET gold.
Cold, hard steel may be the safest bet amid the global economic
turmoil - especially if it is in the form of guns.
While corporate profits of the world's top companies were shot
up badly in recent months, defence firms continued to hit bigger
earning targets, The Washington Post reported.
Despite Singapore's size, our defence industry is a major global
player in the arms arena, and it is gunning for an even bigger
slice of the pie, with Singapore Technologies Kinetics leading the
charge.
The SAR 21 assault rifle and the Ultimax 100 Squad Automatic
Weapon, both designed and made by ST Kinetics and used by the
Singapore Armed Forces, have made a splash overseas.
Mr Gaius Ho, ST Kinetics' corporate communications head, said
more than 50,000 of both guns have been exported in their
variant forms.
The company mainly sells arms to countries in South-east Asia,
Africa and Latin America.
To expand its reach, it has sales teams all over the world - a
good move, considering how lucrative the defence business is.
Just how lucrative? The proposed US defence budget for 2009 is
US$515.4 billion ($727.7b), or 7.5 per cent higher than 2008's
budget. That's more than double Singapore's GDP in 2006.
It is also the biggest budget since the end of World War II,
after adjusting for inflation, according to media reports.
Last month, The New Paper on Sunday reported that the US Army is
mulling over replacing its Colt M4 Carbine with the Heckler &
Koch HK416 as its main assault rifle.
Good thing then that ST Kinetics, the land systems and specialty
vehicles arm of STEngineering, is well-positioned to ride this
surge in defence spending.
The company has developed the Bionix armoured fighting vehicle,
Bronco All Terrain Tracked Carrier and the CIS 40mm Automatic
Grenade Launcher (CIS 40 AGL), among others.
Singapore is the second-biggest seller of AGLs in the
world.
It may also be the world's biggest producer of 40mm
ammunition for AGLs, having exported more than three million in the
last few years.
In 2006, it registered sales of over $1b.
Last Thursday, ST Kinetics invited The New Paper on Sunday to
its Boon Lay plant where we met Mr Lai Hon Nam, vice-president of
Kinetics Marketing Group.
Fittingly, the interview took place in the factory where an
estimated 80 per cent of all rifles used in Singapore are made.
Designing weapons for overseas markets can be a dirty business -
literally.
It involves going to field tests, squatting in jungle, desert
and snow, listening to all sorts of customer demands.
ST Kinetics has a team of 10 designers. Business is so good that
the company is looking for more to join the team.
Mr Lai said that to penetrate overseas markets, one has to
develop weapons according to clients' needs.
'Most of the requirements they throw at us, we have a solution,'
said Mr Lai, who led the research team that developed the SAR 21
and the Ultimax 100.
Using the two standard weapons as basic templates, they designed
several variants, 'like a family tree', for their customers.
Each tells a story. (See report above.)
NEW FIGHTING
SCENARIOS
He said: 'Last time, there was only one scenario: Cold War
fighting. Now, there are many scenarios.'
Though different armed forces have different needs, Mr Lai
noticed a common demand: lighter, smarter and more accurate
weapons.
This is the direction of the company's rifle designs.
'Last time, 5kg was acceptable (for an assault rife), then it
was 3kg. Now, it's 3kg with sights,' he said, adding that user
safety is also a high priority.
Another selling point is that ST Kinetics provides a complete
solution, Mr Lai said. This means providing the third-party sights
and the ammunition.
But how does ST Kinetics compare to the big guns of the arms
world, such as Heckler & Koch, Beretta, Colt, Glock and Izhmash
(makers of the AK-47)?
Mr Lai said: 'We compete overseas and we see the companies that
you mentioned.
'The fact that we win says something.'
ST Kinetics' will be showcasing its homegrown weaponry at the
upcoming Singapore Airshow (19 to 24 Feb).
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DIFFERENT GUNS
FOR EVERY NEED
SAR 21, ULTIMAX 100 VARIANTS
SAR 21 Modular Mounting System Carbine
Usually used by special forces and some frontline units. Most
flexible of the variants, with unique sighting systems.
SAR 21 Light Weight Carbine
Used by troopers, paramilitary groups, and logistics
personnel.
Shortest and lightest variant.
SAR 21 M203
Used by infantry in support firing. M203 grenade launcher
attached.
Ultimax 100 Mark V
More flexible than standard Ultimax 100. Comes with sight;
magazine-fed instead of belt-fed. Used for urban warfare, where
controlled fire is vital so as not to hit civilians.
*SAR 21 costs US$2,000 to US$3,000 ($2,800 to $4,300). Ultimax
100, US$4,000 to US$5,000.
http://newpaper.asia1.com.sg/news/story/0,4136,156604,00.html
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A new Ultimax 100 Mark V?!?