Saturday, April 18, 2015

Defense Business

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LAAD 2015: IAI set to expand operations in Brazil, investing in a number of strategic partnerships

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India is doubling the number of Rafale jet fighters it intends to buy from France, increasing the quantity of aircraft built in France from 18 to 36. Indian prime minister Narendra Modi and French president Francois Hollande have reached the agreement during their summit meeting today in Paris. The procurement will be part of a government-to-government (G2G) deal worth $7.5 billion.

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The oldest military industry in Israel is up for sale – Israel Military Industries (IMI), the government owned company established in 1933 is undergoing privatization, which includes the sale of its business activity to a private investor

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The biggest saving reported in 2014 was in the F-35 Joint Strike Fighter (JSF) and F-135 engine program, together, these procurement programs decreased $7.4 billion in the cost of Research, Development, Test & Evaluation (RDT&E), procurement and infrastructure spending over the 32 production years (from $398.5 bn to $391.1 bn). The current average F-35A price is $108 million (with engine), $4 million lower than lot 7 prices.

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General Dynamics Land Systems and Thales Australia are teaming to bid to the Australian Defence Land 400 Phase 2 - Mounted Combat Reconnaissance Capability (MCRC) Request For Tender. The Combat Reconnaissance Vehicle (CRV) fleet will support seven mission roles identified within the LAND 400 Operational Concept Document (OCD). The Australian tender seek a military-off-the-shelf (MOTS) based capability, and maximise Australian industry content. Through-Life Support for the MCRC is being acquired under a collateral contract. First delivery of the CRV is expected in 2020 with first unit achieving initial operational capability (IOC) three years later.

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What seems to be the final stage of negotiation between India and France over the procurement of 126 Rafale fighter jets is turning into a circus, where New Delhi is walking on a tightrope, between approving the deal with dramatic cost increase (compared to the original budget) or ditching the plan, risking further delays in the IAF modernization.

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Airbus Defense & Space was awarded a contract worth several million euros to supply the german Army with 36 VPJ-R6 'smart' C-IED jammers for its armored vehicles. The new devices use ultra-fast 'SMART' Responsive Jamming Technology selectively jamming threats frequencies while maintaining the rest of the radio band open for friendly communications

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“The Indian move from buying military hardware abroad (BUY) to producing such systems in country (MAKE) is an important development for RAFAEL, as it enables us to exploit one of our major advantages as a developer – our ability to cooperate, transfer know how and support local production"

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The Indian defense industry in the government sector alone, employs nearly 200,000 workers and thousands of engineers and scientists. There are studies that show that even a 20 to 25% reduction in imports could directly create an additional 100,000 to 120,000 highly skilled jobs in India.

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Elbit Systems CEO: “We expect this market to open for more competition and are positioning here the Hermes 900 and Hermes 450, as well as mini and small UAS.” Under its HALBIT - JV company with HAL the company is also proposing to establish a training and simulation center in India, similar to the facility the company operates for the Israel Air Force.

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India is doubling the number of Rafale jet fighters it intends to buy from France, increasing the quantity of aircraft built in France from 18 to 36. Indian prime minister Narendra Modi and French president Francois Hollande have reached the agreement during their summit meeting today in Paris. The procurement will be part of a government-to-government (G2G) deal worth $7.5 billion.
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