BAE Systems Investor Brief - August 2004
02 Sep 04
In this month's brief:
- NIMROD FIRST FLIGHT
- TYPHOON UPDATE
- JSF PROGRAM SIGNS INTERNATIONAL ACCORDS
- SEA TRIALS FOR REGELE FERDINAND
- TYPE 45 DESTROYER SHIP 02 BEGINS PRODUCTION
- FUTURE NAVAL SYSTEMS
- LAST CANADIAN SUBMARINE LEAVES
- ASTUTE DESIGN MILESTONE TREBLE
BAE SYSTEMS CONTRACT AWARDS THIS MONTH
- ASRAAM LOGISTIC SUPPORT CONTRACT
- CIVIL FLIGHT TRAINING SIGNS CONTRACTS WITH ZHEJIAN AND CHINA AIRLINES
- AUS$9M ARTILLERY ORIENTING SYSTEMS CONTRACT
- TORNADO SUPPORT CONTRACT
- E-3D SENTRY DOWNSELECT
- CONTRACT SIGNED WITH DLO FOR SHIPS DISPOSAL
- CANADIAN VICTORIA CLASS CONTRACT EXTENSION
- HIDAS CONTRACT WITH STATE OF KUWAIT
- GROUND STANDOFF MINEFIELD DETECTION SYSTEM
- RADIO COMMUNICATIONS SYSTEM FOR LCS DESIGN TEAM
INTERNATIONAL PARTNERSHIPS - AMS
- UK ROYAL NAVY ASTUTE CLASS TRAINING SERVICE CONTRACT
- ABU DHABI SHIP BUILDING
- TYPE 45 TACTICAL DATA LINK
INTERNATIONAL PARTNERSHIPS - GRIPEN INTERNATIONAL
- GRIPEN AIR-TO-AIR RE-FUELLING PROGRAMME READY FOR AIRBORNE TRIALS
- CZECH AIR FORCE GRIPEN TRAINING UNDERWAY IN SWEDEN
INTERNATIONAL PARTNERSHIPS – MBDA
GENERAL NEWS
Alvis
Following the approval of BAE Systems’ acquisition of Alvis by regulatory authorities, all regulatory conditions have now been satisfied.
Ian King and Peter Lynas have joined the Alvis plc Board with immediate effect.
BAE Systems has decided that Alvis should continue to operate with its existing management organisation and reporting lines pending a further announcement in September.
50 Years Lightning celebrations
Outgoing chairman Dick Evans, hosted an event at Duxford airfield on 28 July to celebrate 50 years of the Lightning. The development jet first flew on 4 August 1954 and the Lightning went into service with the Royal Air Force in June 1960. The aircraft also achieved export success with both Saudi Arabia and Kuwait acquiring the aircraft. Customers, suppliers and both current and retired employees joined in the celebration.
In total over 280 production aircraft were designed, built and tested at the BAE Systems Warton, Samlesbury, Preston and Filton UK sites. Although no longer in Royal Air Force service a number of Lightnings are still flying today in South Africa.
Historic Name For New Facility
The new Command Deck Module outfit and integration facility being built at Barrow to save months on the construction of each Astute submarine has been given an historic name. The facility will be called WARSPITE after the second fully British nuclear attack submarine.
Built at Barrow, Warspite holds the record for the longest period continuously dived on an operational mission. The name draws on the shipyard's proud tradition and also represents WeAponeeRS Production Integration and Test Establishment.
MAJOR PROGRAMMES UPDATES.
Nimrod First Flight
The Nimrod MRA4 development aircraft PA01 took off from Woodford on its first flight at 1531hrs on Thursday 26 August.
Having conducted a series of tests en route, PA01 landed successfully at Warton at 1730hrs. The landing was witnessed by Lord Bach, Minister of State for Defence Procurement, who was visiting Warton, UK.
Lord Bach commented, “This is a historic day with the first flight of the new Nimrod MRA4. This would not have been possible without the tremendous efforts of BAE Systems and the Defence Procurement Agency.”
PA01 will now be based at Warton for an extensive programme of flight trials, and will be joined by PA02 and PA03 around the end of this year and mid-2005 respectively.
Typhoon Update
All aircraft and personnel involved in ‘Exercise Eastern Smile’ - the RAF deployment of Typhoon to Singapore - have now returned to the UK, with the success of the exercise and the performance of the aircraft heartily praised.
The RAF have also publicly declared their satisfaction with the aircraft at a Press Conference held at Warton on August 11, with Air Chief Marshal Sir Brian Burridge, RAF Commander in Chief, Strike Command, saying “I can state quite categorically that this will be THE aircraft the others will want to beat.”
Eight aircraft have now been delivered to the RAF, with the first ten pilots also having completed their conversion-to-type, and operational test and evaluation of the aircraft well underway.
JSF Program signs International Accords
Information & Electronic Warfare Systems (IEWS) has signed Memorandums of Agreement for work-share partnerships with Norway, The Netherlands, Italy and Australia for work on the F-35 Joint Strike Fighter program. The agreements established a work-share partnership with one supplier from each country. IEWS is responsible for the JSF Electronic Warfare system integration.
Sea trials for Regele Ferdinand
The Type 22 frigate sea trials were completed successfully and to schedule. The Regele Ferdinand will be handed over to the Romanian Navy on 9 September, followed by the second frigate, the Regina Maria, next year.
Type 45 Destroyer Ship 02 begins production
Production on Type 45 Ship 02 began on 26 August with a steel-cutting ceremony in the Govan Steelwork Centre of Excellence.
First Sea Lord, Admiral Sir Alan West, was guest of honour at the event, which marked the move to the next phase of the programme. Senior representatives of the Royal Navy and the UK MoD also witnessed the event.
Future Naval Systems
Naval Ships has been successful in securing one of four parallel Procurement Options Scoping Studies led by the UK MoD's Future Surface Combatant (FSC) IPT. The output of this study, which is due to report in November, will help to inform UK MoD as to the various options available to meet its FSC requirements and will provide information, which will enable it to proceed to Initial Gate.
Last Canadian Submarine leaves
The last of the four ex-Royal Navy submarines to be reactivated at Barrow for the Canadian Navy has left the shipyard. HMS Upholder headed for sea on 5 August to undertake a programme of trials leading to hand-over on 2 October. She will be renamed HMCS Chicoutimi after a town on the Saguenay River in Quebec.
Astute Design milestone treble
Three key milestones have been achieved that together confirm the maturity of the Astute submarine design. The first was the signing on 20 July - four days ahead of schedule - of the updated Initial Certificate of Design. This states that the submarine will deliver the performance required and will be safe for its Royal Navy crew to operate. The certificate has now been updated to include all of the change proposals agreed with the customer since last year.
This was followed two days later by achievement on schedule of the arrangements complete review for the final design area of the submarine, which includes a major customer change to improve operational capability. This means that each component will fit into that design area and will not clash with other components. The computer model for each component is reviewed and signed off by all relevant functions, including Operations who will build it.
The third milestone on 13 August was formal issue of all 172 diagrams and schematics from Stage One definition and spatial design. This confirms the maturity of the design, minimising the likelihood of change or re-work.
BAE SYSTEMS CONTRACT AWARDS THIS MONTH
ASRAAM Logistic Support Contract >
CS&S Australia has been awarded a $14.3m multi-year contract to provide Contractor Logistics Support for the Advanced Short Range Air to Air Missile (ASRAAM). Under the contract CS&S Australia will assist MBDA in the development of an ASRAAM software support facility. CS&S Australia will also be responsible for establishing a missile repair facility at Edinburgh Parks, South Australia.
Civil Flight Training signs contracts with Zhejian and China Airlines
Civil Flight Training in Adelaide, South Australia has secured a contract worth up to AUS$4.5 million to train an additional 50 students for Taiwan’s China Airlines. They also signed a contract to train a further ten students with Zhejiang Airlines.
AUS$9m Artillery Orienting Systems Contract
CS&S Australia has been selected to supply the Australian Army with 16 state-of-the-art Artillery Orienting Systems (AOS) and will team with BAE Systems Artillery Pointing Systems, Edinburgh, UK, to provide the Army with an upgraded capability. The AOS program will be centred at Holden Hill in South Australia. The first of the AOS will enter service in 2005 with the final system being delivered in 2006.
Tornado Support Contract
BAE SYSTEMS has been awarded a ten-year contract worth approximately £76m to support the Tornado Secondary Power System (SPS). The Secondary Power System allows the aircraft’s hydraulic and mechanical systems to be operated and tested without the need to run the engines.
Under the contract CS&S will take responsibility for the entire system, including managing the supply of assets, ensuring the availability of serviceable items to maintain the SPS at the Tornado operating bases.
E-3D Sentry downselect
The UK Ministry of Defence (UK MoD) has selected Northrop Grumman Corporation as the preferred bidder for a £650 million contract to support the RAF's E-3D Sentry aircraft.
CS&S will be a major sub-contractor to Northrop Grumman on the E-3D support programme. Its role will be to provide maintenance, maintenance training and on-line technical information under an agreement expected to be worth in the order of £100m over the life of the programme.
Contract signed with DLO for ships disposal
In August, an agreement was signed with the Defence Logistic Organisation (DLO) which appointed CS&S Naval as the prime contractor to support the DLO's Supply Chain Organisation in preparing ships for disposal or sale. The contract is for an initial period of five years.
Canadian Victoria Class contract extension
The Canadian Department of National Defence has awarded CS&S Naval a one-year contract extension worth £4.5 million to support the four ex-Royal Navy Victoria Class submarines by providing in-country engineering and supply management.
HIDAS contract with State of Kuwait
Six HIDAS units have now been ordered by the State of Kuwait, under contract with the US government, through an FMS (Foreign Military Sales) contract. This significant order makes Kuwait the first customer for HIDAS on a US platform, the Apache helicopter, and as such is a launch platform for future sales.
Ground Standoff Minefield Detection System
Integrated Defense Solutions (IDS-Austin) has received a $59 million U.S. Army contract for the system development and demonstration (SDD) of the Ground Standoff Minefield Detection System (GSTAMIDS) - Future Combat System.
IDS-Austin will develop the integrated system of mine detection, marking and neutralization to be fielded on the robotic Multi-function Utility/Logistic Equipment (MULE) Countermine variant of the Army’s Future Combat System.
Radio Communications System for LCS Design Team
General Dynamics has chosen BAE Systems to provide the radio communications system for the U.S. Navy's Littoral Combat Ship (LCS). BAE Systems Electronic Systems will design the entire communication suite to provide the Navy an open architecture-base, cost-effective communications system.
INTERNATIONAL PARTNERSHIPS - AMS
UK Royal Navy Astute Class Training Service contract
FAST Training Services Ltd, equally owned by AMS and CAE, has successfully completed a £190m amendment to its Astute Class Training Service Contract with the UK MoD increasing the total value to approximately £490m.
In 2001, FAST was awarded a 30-year contract to provide comprehensive training services to the Royal Navy for the first three Astute class nuclear submarines.
Abu Dhabi Ship Building
AMS recently signed an agreement with Abu Dhabi Ship Building of the UAE as part of the Baynunah Programme. The programme relates to the construction of four 70m off-shore patrol boats. AMS will supply the IPNS Command and Control System and NA-25XM Fire Control System as well as integrating a large number of systems and sensors supplied by Abu Dhabi Ship Building. The contract also incorporates installation and logistical support.
Type 45 Tactical Data Link
AMS have been awarded a €9.2m contract change to implement an alternative tactical data link solution (TDLS) for the Type 45 destroyer. The TDLS, based on the Aerosystems International CAYMAN product will be hosted on common Combat Management System (CMS) hardware. This demonstrates AMS's commitment to open systems, and the use of a core CMS architecture, which allows for the integration of third party applications.
INTERNATIONAL PARTNERSHIPS - GRIPEN INTERNATIONAL
Gripen Air-to-Air Re-fuelling Programme ready for Airborne Trials
In mid-June 2004 a Gripen C, export standard single-seat fighter, flew for the first time with its retractable air-to-air re-fuelling probe fully extended. The flight was part of the test and evaluation programme to verify Gripen’s air-to-air re-fuelling capability.
Czech Air Force Gripen training underway in Sweden
Following the Czech government’s decision in June 2004 to lease 14 NATO-compatible Gripen fighters for a period of 10 years, Czech Air Force pilots and technicians are already in Sweden undergoing their initial training.
INTERNATIONAL PARTNERSHIPS - MBDA
ASRAAM enters service with the Royal Australian Air Force
In a ceremony at RAAF Williamtown, north of Sydney, attended by the Australian Defence Minister, Senator Robert Hill, and the Chief of the Air Force, Air Marshal Angus Houston, ASRAAM (Advanced Short Range Air-to-Air Missile) formally entered service with the Royal Australian Air Force on the F/A-18 Hornet. The event marked a highly significant milestone for ASRAAM and a major breakthrough for MBDA, as it is the first of the company’s weapon systems to be integrated onto a US combat aircraft.
Working together on Meteor
A Joint Charter for Working Together between the Meteor International Joint Project Office (IJPO) and MBDA was signed in July. The charter records the principles upon which the working relationship between the Meteor IJPO and MBDA has been established and will continue to develop, during the execution of the complex six-nation contract for the Meteor Beyond Visual Range Air-to-Air Missile.
