BAE Systems Investor Brief - June 2004
01 Jul 04
In this month's brief:
- OPENING OF JAVELIN SEEKER FACILITY AT BASILDON
- PORT OF HOUSTON EMERGENCY COMMAND CENTER RENOVATION COMPLETED
- NIMROD MRA4 STARTS TAXI RUNS
- TYPHOON INSTRUMENTED PRODUCTION AIRCRAFT (IPA5)
- TYPHOON ENTRY INTO SERVICE UPDATE
- SINGAPORE
- WEDGETAIL’S FIRST FLIGHT
- TYPE 45 PROGRAMME
- BULWARK HEADS FOR HAND-OVER
- MILESTONE HAT-TRICK
- UPHOLDER BEGINS HAND-OVER
BAE SYSTEMS CONTRACTS AWARDED THIS MONTH
- THAI ARMY TO BUY 105MM LIGHT GUN
- WARRIOR TECHNICAL DEMONSTRATOR CONTRACT
- TURKISH F-16 CONTRACT
- NASA CONTRACT
- HAARP CONTRACT
INTERNATIONAL PARTNERSHIPS - AMS
- CZECH REPUBLIC SIGNS CONTRACT FOR LEASE OF 14 GRIPEN FIGHTERS
- FIFTH HUNGARIAN AIRCRAFT ENTERS PRODUCTION
GENERAL NEWS
Opening of Javelin Seeker facility at Basildon
On 23 June 2004, Lord Bach, the UK Government’s Minister for Defence Procurement, officially opened Avionics Group’s new state of the art facility for producing the IR seeker for the Javelin anti-armour weapon system.
Port of Houston Emergency Command Center Renovation completed
Integrated Defense Solutions (IDS), Austin, Texas, completed extensive building renovation for the Port of Houston Emergency Command Center on 1 June 2004.
The new facility provides the backbone onto which the Port of Houston will continue to build and strengthen its security system and associated disaster response capabilities. The Port of Houston is the largest container shipping port in America.
MAJOR PROGRAMMES UPDATES.
Nimrod MRA4 starts Taxi Runs
The lead design and development aircraft, PA01, achieved a further major milestone on 12 June when it moved under its own power for the first time in a series of low-speed taxi trials on the main runway at Woodford. High-speed taxi trials will follow, leading ultimately to first flight later this summer.
Typhoon Instrumented Production Aircraft (IPA5)
The first UK single seat Instrumented Production Aircraft (IPA5) successfully carried out its maiden flight in June. The flight of IPA5 (also known as PS002) is a major milestone in the Typhoon programme.
This provides a set of principles for the future management of the programme and the behaviours required to achieve success.
The aircraft features the most advanced technology and will join the Typhoon development fleet to prove the design and functionality of the single seat aircraft.
Typhoon entry into Service Update
The RAF is currently flying six Typhoon aircraft with the delivery of BT009 expected in June.
Eight RAF Pilots have completed Service Instructor Pilot Training (SIPT) and are currently exceeding the contractual agreement having flown over 250 sorties.
Singapore
The evaluation of Typhoon by Singapore is underway. The UK phase is now complete with two aircraft already having departed for Singapore to complete the evaluation.
Wedgetail’s First Flight
The first flight of the Wedgetail Airborne Early Warning and Control (AEW&C) aircraft was conducted by the Royal Australian Air Force (RAAF) in May.
This aircraft will be used for the certification of the airframe and the equipment mounted outside of the pressure hull of the aircraft.
CS&S Australia provides the Electronic Support Measures (ESM), Electronic Warfare Self Protection (EWSP), Operational Mission Simulator, Mission Support System and AEW&C Support Facility for project Wedgetail.
Type 45 Programme
Type 45 01 has currently 35 of the 40 build units in production on the Clyde and at Vosper Thornycroft (VT) in Portsmouth.
Type 45 02 will commence construction in August when the First Sea Lord, Sir Alan West, will perform the initial steel cutting.
Bulwark heads for Hand-Over
The second Landing Platform Dock assault ship Bulwark left Barrow on 31 May, well ahead of programme, for trials in the Irish Sea. The ship will complete her delivery voyage to Plymouth to meet an anticipated hand-over date of 12 July - six weeks ahead of her programmed acceptance date of 22 August.
Milestone Hat-trick
Submarines has achieved its third successive Astute target milestone early. The Engineering team reached the milestone of issuing to Production 3,300 drawings - more than half the drawings required to build Astute - 10 days ahead of the 21 May target.
The target milestones have been chosen in agreement with the Ministry of Defence to demonstrate that the Astute programme is on track to meet its revised schedule. The first two targets for 2004 were achieved one day and seven days early respectively.
Upholder begins Hand-Over
Upholder, the last of the four submarines being reactivated at the Barrow shipyard for the Canadian Navy, began a formal hand-over process on 16 June, ready for hand-over to the UK Ministry of Defence in early October, following sea trials in early August.
Upholder will be re-named HMCS Chicoutimi.
BAE SYSTEMS CONTRACTS AWARDED THIS MONTH
Thai Army to buy 105mm Light Gun
CS&S RO Defence is to supply a number of 105mm Light Guns to the Royal Thai Army, following the signing of a contract in June.
More than 1,100 Light Guns produced by BAE Systems are currently in service, operated by 20 countries, including the USA.
Warrior Technical Demonstrator contract
CTA International (CTAI), the CS&S RO Defence and Giat Industries 50/50 Joint Venture Company based in Bourges France, has been awarded a contract from the UK MoD for a Manned Turret Integration Programme (MTIP).
The contract is valued at £6million, and the work is to be complete in 2006.
Turkish F-16 contract
Information & Electronic Warfare Systems (IEWS) has been selected by the Turkish Ministry of Defense and the Turkish Air Force as the key subcontractor for an integrated electronic self-protection system to be installed on their F-16 fighters.
Under the contract, which is valued at $100 million, development and delivery of hardware and related software for the AN/ALQ-178(V)5+ EW System will be provided for Turkey’s version of the F-16 Fighting Falcon.
NASA contract
Information & Electronic Warfare Systems (IEWS) has also received a $20 million NASA contract to design a new atmospheric sounding/coastal water imaging instrument.
IEWS is one of three companies that will formulate designs. NASA will later select the winning design to be built and fly on the Geostationary Operational Environmental Satellites (GOES). The Hyperspectral Environmental Suite (HES) will sense from orbit the temperature and water vapor profiles in the earth’s atmosphere.
HAARP contract
The Office of Naval Research has awarded Information & Electronic Warfare Systems, a $35.4 million contract to manufacture 132 high frequency (HF) transmitters for installation in the High Frequency Active Auroral Research Program's (HAARP) phased array antenna system.
The HAARP program collects and assesses data to advance knowledge of the physical and electrical properties of the Earth's ionosphere.
INTERNATIONAL PARTNERSHIPS - AMS
ADAWS contract for UK Royal Navy
AMS has won a 3-year contract to upgrade the Action Data Automated Weapon System (ADAWS) on three Royal Navy aircraft carriers and eight Type 42 destroyers. The upgrade will provide secure voice communication using fibre-optical technology.
SMCS NG contract from DPA
The UK Defence Procurement Agency has awarded AMS a £3m next generation submarine command system (SMCS NG) Interim Contract. The upgrade is anticipated to take 8 months.
This is the first tranche of the main contract and includes completion of activities for the initial SMCS NG production kit for HMS Torbay; equipment for HMS Talent; the next software release; and support activities over the period.
UK Royal Navy DCB and DCG contracts
AMS has won a contract worth €703k to extend the in-service support of DCG for a further year. DCG is the tactical support system installed on some Royal Navy (RN) Swiftsure and Trafalgar class submarines.
As a result of this contract, AMS has also won a €2.4m contract to extend, for one year, the life of DCB, the tactical data handling and fire control system for RN Nuclear Submarines.
ATLAS ELEKTRONIK
EDO and ATLAS announce Strategic Alliance
EDO Corporation (NYSE: EDO) and ATLAS ELEKTRONIK GmbH have reached an agreement to co-operate in the field of maritime Mine Counter Measures (MCM).
Both companies are world-class specialists in undersea warfare, with extensive experience in their respective MCM capabilities. Their complementary products and market strengths present a base to provide comprehensive MCM system solutions. Both companies have an extensive, global customer base in the naval and maritime world.
Further KDX contract
Another three HMS (Hull Mounted Sonar) Systems will be delivered for the last three of 12 KDX Destroyers of the Republic of Korea Navy (ROKN). ATLAS and its predecessors already equipped the three KDX I Destroyers.
The HMS systems for the six KDX II Destroyers are in production or already delivered respectively. The new contract for the three KDX III ships now completes the full order.
GRIPEN INTERNATIONAL
Czech Republic signs contract for lease of 14 Gripen Fighters
At a ceremony on 14 June in Prague, Gripen International, the BAE Systems/Saab joint venture company, signed an offset agreement in support of the contract signed between the Swedish and Czech Republic governments, for the lease of 14 Gripen fighter aircraft (12 single seat and 2 two seat) for a period of ten years.
The Czech Republic will receive the latest C/D versions of the Gripen aircraft, which are fully NATO-interoperable and equipped with full colour cockpit displays and air-to-air refuelling capability, and will be delivered to the Czech Republic between April and August 2005.
The agreement also covers the provision of extensive operational and tactical training of both Czech pilots and technicians, training devices, simulator training, a fully integrated logistics support package including spares, ground support equipment, repairs and technical and tactical support systems, and full technical support for the complete leasing period.
Fifth Hungarian aircraft enters production
The Hungarian Gripen programme took another important step forward when the first Hungarian aircraft entered the detail manufacturing phase at Saab’s factory in Linköping, Sweden.
There are now five Hungarian aircraft in the first stages of the production process, with final assembly of the first Hungarian Gripen due to start in October 2004 and deliveries being made during 2006 and 2007.
Hungary will take delivery of 14 NATO-interoperable Gripen aircraft in total (12 single seat and 2 dual seat), as a part of the lease and purchase agreement with Sweden.
MBDA
First PAAMS Vertical Launch Module installed
The first main launch structure (the Vertical Launch Module) has been delivered to the Franco/Italian PAAMS(E) (Principal Anti-Air Missile System) programme and installed on the trials ship “Carabinieri” (Ship Trials Platform 1).
Installation of the Vertical Launch Sub-system will be completed with the delivery of the NGGM (launch electronics) in September.
