STI's contracting unit sold to BAE Systems

By Sean Hao
Advertiser Staff Writer

Honolulu-based STI Industries Inc. has agreed to sell its government contracting business to European defense giant BAE Systems for $27 million in cash.

BAE Systems North America yesterday said there were no plans to move or cut jobs at STI Government Systems, which employs 125 people, mainly on O'ahu.

"One of the assets are the people in the company," said BAE's Joan Ferguson.

STI Government Systems also has a small number of employees in Kihei, Maui, and Hilo, Hawai'i. The division develops electro-optical products for the U.S. Navy's mine and submarine countermeasure efforts and for use in pollution mapping and search and rescue.

BAE Systems North America's total employment in the state will increase to about 480 people.

STI Industries will continue to employ 13 people in Honolulu at its remaining medical diagnostic imaging and advanced technology research and development businesses.

Proceeds from the sale will be used to grow those operations, a company official said.

Reach Sean Hao at shao@honoluluadvertiser.com or 525-8093.