Defence Industry Bulletin - January 2015 (#4) by Defence IQ

Insider knowledge for the discerning defence and security professional

Issue #4, January 2015

IS REAPER A KEEPER? BRITISH AND DUTCH CONSIDER UAV ‘AFTERLIFE’

INTERVIEW

FMV AND FXM CHIEFS DISCUSS FUTURE PLANS

PROCUREMENT UPDATES

TURKEY, CHILE, SERBIA ANDIndustry MORE Bulletin :: Defence

$3 BILLION

FRANCE-SAUDI PACT FOR LEBANON 1

CYBER THREAT

SONY CRISIS GAME CHANGER

Welcome Global Budgets & Requirements Land Naval Air

1 3 7 11 15

Cyber 17 The Briefing Room 19 More Information 30

Welcome to Defence Industry Bulletin!

e start the year amid

a turbulent time. The Paris attacks have fanned the flames of the freedom of speech debate in Europe. Aside from the increased focus on counter-terror capabilities, governments in the West are also considering new data and privacy laws to weed out would-be terrorists. In the UK, the Spying Charter proposed by David Cameron was shot down by the Liberal Democrats in 2010 but events in France have led the PM to revive the legislation, which is being met with robust opposition from privacy advocates. President Obama is calling for stricter cyber security laws to protect companies and individuals from cyber attacks after the North Korean government allegedly hacked Sony in retaliation for producing screwball comedy, The Interview. In this month’s issue, Angus Batey explores the issue of privacy vs. security in

cyberspace further. In The Briefing Room, George Mader interviews Ulf Hammarström, Director of the controversial Swedish Defence and Security Export Agency (‘FXM’). The agency was axed by the Swedish government last year before being recently granted a new lifeline following increased national security concerns and an increasing defence budget. Lena Erixon, Director of FMV, is also interviewed to help readers understand more about Sweden’s future defence priorities and requirements. Also in this month’s Defence Industry Bulletin, Iñigo Guevara explores opportunities in Chile’s defence sector in 2015 and provides an update on the Uruguayan Army’s new ground surveillance system; Victor M. S. Barreira flags up a new 6x6 Guarani deal in Brazil and France’s new armoured vehicle development programme;

while there are also important updates from our team of global correspondents on a range of issues from Turkey’s new programme announcements to Peru’s investment in its future naval capabilities. As ever, if you have any comments you would like to share, don’t hesitate to get in touch.

Andrew Elwell and Richard de Silva

Front cover images courtesy of Lance Cheung (USAF), U.S. Army, Stuart Miles/FreeDigitalPhotos.net.

1 :: Defence Industry Bulletin

Global Budgets & Requirements Chile’s delayed 2015 defence procurement decisions Iñigo Guevara procurement of Siroco ( L 9012), the second French Foudre-class LPD, will not proceed. Retirement of the Almirante Merino BMS-42 submarine support ship and the last two Type 148 (Tigre) fast attack craft (missile) will go without replacements. Chilean Marines will take delivery of the 1,800 SCAR 5.56 mm assault rifles.

Chile is investing in defence despite delays

he 2015 defence budget

totals CLP 1.633 trillion ($2.65 billion), which includes funding for new vessels and the acquisition of assault rifles, however several procurement decisions expected for 2015 have been delayed. After more than a decade of significant defence spending, which has led the Chilean armed forces to be one of the best equipped in the region, defence procurement will slow down in 2015 and move away from big ticket conventional equipment. This is due mainly as a result of the incorporation of significant new defence equipment over the last decade. This included over 500 armoured vehicles including the Leopard 2 main battle tank, Marder infantry fighting vehicle and YPR-765 armoured personnel carriers, M109A3/A5 self propelled howitzers, 46 LockheedMartin F-16 Fighting Falcons, 12 EMBRAER Super Tucanos, and three

Kongsberg NASAM medium-range air defence systems. The Navy procured a new surface fleet in the form of Type 23, L and M frigates as well as the new OPV-80 ocean patrol vessel and second hand armour for the marines. In 2015 the Chilean Army will adopt the Galil ACE 5.56 mm as its standard assault rifle with some 22,000 to be built locally by FAMAE. However, procurement of a new attack helicopter to replace the MD530 and up to four new fixedwing medium transports from either the Airbus Military C295M or Alenia C-27J Spartan, is expected to be delayed. The Chilean Navy expects to fund construction of a new ice breaker that will replace the Viel, which is nearing the end of its service life, and procure a fourth Fassmer-designed OPV80 ocean patrol vessel at the local ASMAR shipyards. It is now apparent that

The Chilean Navy expects to fund construction of a new ice breaker that will replace the Viel The Air Force (FACh) expects to procure a new satellite that will replace the existing EADS Astrium FASAT Charlie earth observation satellite, which has been in service since 2011 and will be retired in 2016-2017. However, a political decision to go ahead with procurement of FASAT Delta is reportedly delayed. FACh procurement of new medium multi-role helicopters and medium transport aircraft –again from either the C295M or C-27J- is also delayed. Selection of a new fighter to replace its ageing fleet of Northrop F-5E/F Tigre III fighters is also unlikely to take place in 2015.

Defence Industry Bulletin :: 2

Global Budgets & Requirements India’s procurement muddle Atul Chandra

ndia’s defence procurement

efforts have slowed over the last few years on the back of poor decision making, sluggish economic growth and what can only be described as the lack of decisive will to ensure that India’s armed forces are equipped to fight 21st century battles. A number of projects are no closer to fruition despite having being underway for years. Dassault’s triumph in emerging as L1 (lowest bidder) with its Rafale for the IAF’s Medium Multi-Role Combat Aircraft (MMRCA) tender has yet to land an actual contract for the privately owned French firm. While Dassault continues to maintain a stoic silence on the matter, Indian newspapers are rife with details of the difficulties facing the programme. India’s new Defence Minister Manohar Parikkar in a January television interview stated that, “the choice of inducting more Su-30 MKI’s remains,” adding that, “the terms of the Request for Proposal (RFP) cannot be diluted.”

The shift towards ‘Buy & Make (Indian)’ is likely to further delay projects The Su-30 MKI fleet however, has suffered from serviceability issues and was grounded late last year for fleet wide checks ordered by the IAF after another instance of uncommanded seat ejection on the type. At present the IAF has 34 fighter squadrons as against 42 squadrons sanctioned by the Indian Government. These consist

3 :: Defence Industry Bulletin

of thrust vectored Su-30 MKI’s, upgraded MiG-29 UPG interceptors and Mirage 2000 fighters (also receiving an upgrade) at the high end. Jaguar’s and ageing MiG-27 ML’s used for interdiction and strike roles and the MiG-21 make up the lower end of the IAF’s combat capability. The result of the procurement delays is that the IAF is unlikely to go beyond 34 combat squadrons for an extended period of time and will have to make do with legacy platforms (albeit upgraded) for a significant portion of its combat fleet. There appears to be a greater push towards ‘Make in India’, a slogan of the current government which has resulted in a number of defence procurements being steered in this direction. The shift towards ‘Buy & Make (Indian)’ as per the Defence Procurement Procedure (DPP), where the foreign OEM has to form a Joint Venture (JV) with an Indian partner, is likely to further delay projects. India’s nascent aerospace ecosystem simply isn’t mature enough at this stage and steep learning curve involved is likely to make programme slippages endemic. Certification is also likely to be a major issue for the foreign OEM, as ultimately they will be responsible for the products delivered to the Indian armed forces. A programme strongly supported by the IAF that has seen its chances dim is the AVRO replacement programme. India’s Defence Acquisition Council (DAC) had mandated last year that the programme would be handled by the private sector, keeping out HAL. Unfortunately, Airbus Defence and Space with its Indian partner, Tata Advanced Systems Limited (TASL), emerged as the sole bidder for the tender for 56 aircraft, with their C-295W. As a result of a single vendor situation, the Defence Acquisition Council (DAC), which is

led by India’s Defence Minister, has yet to take a decision either for or against the programme. Two major helicopter acquisition programmes will now proceed under the ‘Buy & Make (Indian)’ category as stipulated by the DPP. For both the Indian Army (IA) and IAF, the decision to restart the long running tender for a Reconnaissance &Surveillance Helicopter (RSH) means that replacement of their obsolete Hindustan Aeronautics’ built Cheetah and Chetak light helicopters is at least a few years away. The previous tender for 197 helicopters was split between the IA (133) and IAF (64). The final contenders for the contract were the AS550 C3 Fennec from Airbus Helicopters and Kamov Ka-226T from Russian Helicopters. Also looking for a replacement for its long serving Chetaks is the Indian Navy, which has released a Request for Information (RFI) for more than 100 Naval Utility Helicopters (NUH). The NUH must have capability for roles such as full SAR & Utility, HADR and limited Maritime Surveillance & Targeting capability. As per the RFI, the helicopters offered must be twin-engine, have wheeled landing gear and blade fold capability. The required weapons to meet its maritime surveillance and targeting role must be integrated as well.

Global Budgets & Requirements Australia ups defence spending as national threats rise Oliver Austin

ustralia is to spend almost

$2.14 billion on defence this year as concerns over Chinese activity and domestic terrorism continue to trouble Tony Abbot’s government. As reported in 2014, the nation’s 2014-15 financial year was confirmed to rise to AUD2.3 billion to AUD29.3 billion, representing a real increase of 6.1 percent and a 0.1 percent increase in defence spending as a percentage of GDP. Public opinion over security has swayed to a conservative temperature in the aftermath of the recent hostage crisis in Sydney that led to the deaths of three people, including the lone gunman. Meanwhile, broader fears over the growth of the Chinese military and its territorial ambitions in the Asia-

Pacific region have seen dedicated investment into the development of brand new submarines (SEA 1000) and warships (SEA 5000). December saw the successful conclusion of a free trade agreement between Australia and China, with the FTA likely to be enacted at around the end of 2015 after further deliberation on the wording of the terms. In spite of this, Canberra has not curtailed its heavy investment into defence – applying, in fact, revenue garnered through the sale of iron ore and other resources to China. There remains a sense that in its isolated geography, Australia cannot afford to rely as heavily on its allies as other nations that benefit from a geographically close-knit situation. This level of unease has prompted

louder calls for Australia to join NATO; a controversial proposal given the strategic demands this would place on both Australia and European members. Balancing the apparent need to counter Chinese militarisation and the need to keep the door open to economic deals is at the forefront of the government’s bilateral policy. However, recent cyber infiltrations attributed to Chinese sources on both Australian and US government networks have threatened to upset this balance. This reality therefore makes it likely that opportunities will arise for the industry in 2015 to assist Canberra in building a new cyber strategy. The existing strategy has not been updated since 2008.

Serbia struggling to pay for defence modernisation Oliver Austin

he Serbian Army will look to spend $554m in 2015,

representing a $17m drop in its annual budget. Under the proposed figures, over $10m is intended for brand new equipment but the sum of this is expected to be limited to small purchases.

Over $10 million is intended for brand new equipment The nation’s armed forces have been blighted by a significant decrease in military expenditure since 2006. Efforts to procure new MiG fighters last summer were

abandoned and limited reserves are being stretched to upgrade the nation’s 23 Soko G-4 Super Galebs. Ranko Zivak, commander of the air force, admitted that Serbia needs the “help of an appropriate foreign partner for the project of the modernisation of the Supergaleb G4. The procurement of modern combat systems, such as multi-purpose combat aircraft or radar, is conditioned by the budget. [Our] current situation and money problems hamper modernisation but I hope this will not prevent the purchase of new combat equipment in the next few years.” According to the Global Firepower’s (GFP) 2014 World Military Strength Rankings, Serbia had most recently been ranked 60th of 106 countries, with scores determined by factors such as defence budgets, manpower and

in-service equipment. Its military is comprised of 52,000 active frontline members, 212 tanks, 720 armored fighting vehicles, 168 total aircraft, a total naval strength of 19 vessels and auxiliaries, and a [then] total defence budget of $830m. Current levels of military cooperation between Serbia and Western nations are said to be strong but economic and political concerns still present a series of hurdles for the country’s leaders. In one recent instance, Croatian foreign minister Vesna Pusic told the press in December that Croatia will consider blocking Serbia’s accession process with the European Union if Belgrade would not prosecute those accused of war crimes during the breakup of Yugoslavia.

Defence Industry Bulletin :: 4

Global Budgets & Requirements Turkey agrees to refresh approach on Egypt as major programmes announced Joseph Carpenter

n December 19, Qatar

and Turkey signed a bilateral military cooperation agreement during a meeting between Emir of Qatar Sheikh Tamim Bin Hamad Al Thani and Turkish President Recep Tayyip Erdoğan in Ankara. Qatar had called on Turkey to “normalise” its relationship with Egypt and expected improvements to be made in time through talks with Egyptian President Abdel Fattah el-Sisi. The Turkish Foreign Ministry’s attempts to reestablish productive dialogue with Sisi had said to have been thwarted by Erdoğan’s outspoken criticisms but, given the level to which Qatari security relies on a peaceful Egyptian border, a new agreement for cooperative talks were seen to be in both nations’ interests. Palestinian President Mahmoud Abbas warned Erdoğan in 2014 that Turkey cannot contribute to peace in the Middle East without mending its relations with Egypt. Following this recent agreement, it has been reported that Hamas political leader Khaled Meshal, who has been in exile from Syria since the

beginning of the civil war, has been “expelled” from Qatar and moved to Turkey. Other members of the Muslim Brotherhood had already been deported following a recent Saudi initiative to strengthen ties between Qatar and Egypt. Israel has welcomed the decision and hopes that Turkey will take the same course of diplomatic action. During the rise of the Islamic State, Qatar was accused by some of funding terrorism, an accusation which its leaders denied amid pledges to support the fight against IS. In January, Turkish Prime Minister Ahmet Davutoglu announced the initiation of five major defence projects, including an order for four more F-35As for its Air Force to add to the two already on order and to comprise part of the 100 planned purchases Turkey hopes to make by 2030. The other focal programmes are the continuation of the longrange missile system project (T-LORAMIDS), the preliminary design stage for Turkey’s fifth generation air-to-air combat fighter

(TFX), and the mass production of the MPT 76 modern infantry rifle for the Turkish Land Forces. In addition, Turkey is to buy five additional Boeing CH-47F Chinook twin-engine, tandem rotor heavylift helicopters, and will continue to work on its $3.4bn programme to adopt Chinese FD-2000 missile defence systems from CPMIEC – a move that has ignited controversy among NATO partners. “The defense industry is one of the most important sectors for the protection of the independence, freedom and the survival of a country,” Turkish Prime Minister Ahmet Davutoğlu told the press.

Turkey is continuing with the T-LORAMIDS project

Turkish defence ministry aims to raise $5bn for with novel conscription strategy Oliver Austin

he Turkish government

plans to raise up to $5.7bn of public money to fund near-term defence procurement by offering a conscription exemption fee. National legislation requires every male citizen over the age of 20 to serve a compulsory five to 12 months in the military, with delays and shorter durations reserved for those undertaking higher or vocational education. Under the new government edict, Turkish Men over the age of 28 (as of January 1st, 2015) – and primarily those living

5 :: Defence Industry Bulletin

on a middle-income – will have the option of paying around $8,150 instead of having to serve at all. Around 700,000 Turkish men enter national service each year. With an estimated 600,000 people qualified to take up the choice, ministers believe that the $5bn sum could potentially be injected into the Defense Industry Support Fund (DISF) to pay for future acquisition and modernization programmes. Prime Minister Ahmet Davutoglu envisioned the scheme to trigger an upswing in spending as his

government puts efforts towards a “technology-intensive army”. This is the fifth time that Turkey has offered a pay-for-exemption deal with the last being in 2012 when 70,000 people opted to pay $13,300 each. The following year, the Undersecretariat for Defense Industries (SSM) disclosed that the DISF collected $1.479bn, while Turkey’s defence expenditure came to $18bn, amounting to around $200 per citizen.

BOOK & PAY BY 16 JAnUARY And SAVE UP TO £450

Understanding the impact of Interoperable Open Architecture for procurement, technology development and programme management MAIn COnFErEnCE 29th April - 30th April 2015

POST-COnFErEnCE WOrkShOP 1st May 2015

KEy bEnEFitS OF AttEndinG: y Share expertise, explore the major programmes and consider the future with the leading experts from the military and industry communities that are currently defeating the challenges of open architecture y Understand the impact that integrated open architectures can have on budgets, technology delivery and crucially, interoperability at the national and international level y Gain insight from experts working on the development of open architectures for ground vehicles, aerospace technology, unmanned ground systems, weapons systems, and the civilian automobile industry y Benefit from cutting-edge insights into the development and implementation of Integrated Open Architectures into defence procurement processes y Engage in a secure and collaborative environment to transform your knowledge and your skill-set whilst establishing valuable contacts from this domain

tOPiCS tO bE COnSidEREd: y The technical detail behind the development of standards and common requirements to enable ‘plug and play’ y Implementing open architecture for new platforms and programmes: Lessons learned from the flagship efforts in the US and UK y The potential for transformation of defence procurement and the benefits and disadvantages of open architecture for both the military and industry communities y Ease of use and operator effectiveness on the front line y Cross-over practices and lessons learned from the civilian sphere as open architectures are rolled out across land, air and naval systems

FACE WORKSHOP: 1St MAy 2015 - 08:30 What do you know about the Future Airborne Capability Environment? Learn from the leading example of military-industry cooperation defining an open avionics environment for all military airborne platform types. A panel of senior FACE consortium members from industry and government will be on hand to answer all your questions and lead insightful discussion of the technical details and the commercial and user implications of FACE. Moderated by: Judy Cerenzia, Director FACE, The Open Group

LOCATIOn London, UK

PREStiGiOuS intERnAtiOnAL SPEAKER PAnEL inCLudES Brendan Sims Land division, defence Science and technology division Australian DoD Per Hallin Chief Engineer C2i FMV Dr Daniel Charlebois Communications interoperability Portfolio Manager Defence Research and Development Canada Professor David Miskimens Professor Project Management and Mission Assistance Defence Acquisitions University Major Ola Petter Odden Combat Lab norwegian Army, norwegian Army Land Warfare Centre Norwegian Defence Forces Christopher Nicholas Principal Engineer, Avionics DSTL Marek Kalbarczyk Project Officer Land Systems technologies, Captech Ground Systems EDA

Land Brazil buys additional VBTP-MR Guarani 6x6s Victor M.S. Barreira

he Brazilian Army’s Science

and Technology Department (Departamento de Ciência e Tecnologia or DCT) awarded Iveco Latin America a contract for another tranche of VBTP-MR Guarani amphibious wheeled armoured vehicles. The contract placed on 4 December 2014 calls for the delivery of 60 vehicles configured for mechanised infantry doctrine experimentation. The company completed the delivery of 128 vehicles according to contracts placed in 2007, 2012 and 2013.

BAE Systems Hägglunds is to supply the Royal Norwegian Army with at total of 16 CV90 STING armoured combat engineering vehicles. Photo: BAE Systems Hägglunds

In December 2009 the Brazilian Army signed a Letter of Intent with Iveco Latin America to purchase 2044 vehicles until 2031. The fleet is scheduled to include several variants including troop transport, ambulance, command post, air defence, school, CBRN detection, bridge layer, mine clearing, fire control unit, communications, repair, engineering and mortar carrier vehicles. They are intended to replace current ENGESA’s EE-9 Cascavel and EE-11 Urutu 6x6s and as well to increase the service’s armoured capability. The VBTP-MR Guarani is part of the army’s Strategic Project-Guarani (Projeto Estratégico do ExércitoGuarani) intended to mechanise the infantry and modernise the cavalry. It also covers the procurement of 4x4 VBMT-LR (Viatura Blindada Multitarefa-Leve de Rodas) lightweight armoured vehicles in seven versions (multirole, battlefield radar carrier, antitank, command post, electronic warfare, mortar carrier and

forward observation) and VBR-MR (Blindada de ReconhecimentoMédia de Rodas) 8x8 armoured reconnaissance vehicles in two configurations (fire support with 105mm turreted gun and recovery versions). To arm the 6x6 vehicles, the army has purchased the Platt Mounts MR550 shielded ring mount, Elbit Systems’ ARES Aeroespacial e Defesa REMAX (REparo de Metralhadora Automatizada X) and AEL Sistemas UT30BR remote controlled weapon station. The REMAX system armed with 7.62 mm or 12.7mm machine gun was developed together with the army’s Technological Center (CTEx). The CTEx and ARES Aeroespacial e Defesa currently carry out the development of TORC 30 (Torre Operada Remotamente e Estabilizada para Canhão 30mm) remote weapon station armed with 30mm Rheinmetall Defence MK 30-2 ABM 30x173mm automatic cannon.

Dutch forces seek variety in new UAVs Joseph Carpenter

n RFP is being prepared by

the Royal Netherlands Army for a replacement system to its 25-strong AeroVironment RQ-11 Raven UAV fleet with an expected issue date of early 2015. The Raven support contract is coming to an end and the senior UAS adviser to the commander of the army has identified three user groups that would benefit from a small UAV capability, as revealed in December at Defence IQ’s UAS Training and Simulation conference in London. These groups are the country’s Special Forces (including the marines) with up to a onehour endurance; reconnaissance units with a mid-range operating

7 :: Defence Industry Bulletin

requirement; and national security forces with up to a three-hour endurance need. The military police are also anticipating an unmanned rotary-wing capability. It is therefore believed that any new system, which is likely to enter service at the end of 2015, would need to offer modular options to support a variety of payloads. Among the requirements for the new fleet is the need for new flight simulators (both fixed and mobile), alongside maintenance, lifecycle support and potentially instructorship. The Army is also currently undertaking concept work on a flapping-wing microUAV for infantry to deploy on short

reconnaissance missions. Meanwhile, the Dutch Air Force currently operates the larger medium-altitude, long-endurance (MALE) MQ-9 Reaper by General Atomics Aeronautical Systems. The Navy is also likely to seek a shipbased surveillance UAV capability within the next two years. Meanwhile, the Dutch Air Force currently operates the larger medium-altitude, long-endurance (MALE) MQ-9 Reaper by General Atomics Aeronautical Systems. The Navy is also likely to seek a shipbased surveillance UAV capability within the next two years. to Lebanon.

Land Saudi Arabia signs equipment deal with France to aid Lebanese Army Richard de Silva

rance and Saudi Arabia

signed a deal at the end of 2014 to provide $3bn of French military weapons to Lebanese forces. The agreement is funded by a Saudi grant and includes equipment such as missiles, armoured vehicles and helicopters, as well as training. Admiral Edouard Guillard put ink to paper on behalf of French defence sales company ODAS and the nation of France during a visit to Riyadh, while Saudi

finance minister Ibrahim al-Assaf is understood to have supplied the signature to confirm the release of funds. Lebanon is currently facing a “deteriorating security situation” according to the French Foreign Ministry. The Army is suffering heavy losses at the hands of terrorist actions, including suicide bombings and kidnappings at the hands of the Nusra Front and militants of the Islamic State. Both

Saudi Arabia and France have also lost people in terror attacks in recent weeks, from shootings of Saudi soldiers on the Iranian border to the civilian shootings in Paris. Lebanese Prime Minister Tammam Salam believes that the action has come late for his country and has been vocal about the deliveries beginning as quickly as possible. Iran, the UK and the US have also offered aid and assistance to Lebanon.

Venezuelan marines take delivery of new armour Iñigo Guevara

he Venezuelan Marine

Corps began to take delivery on December 29 of a much anticipated $500 million weapons package ordered from China back in 2012. The initial delivery has comprised 11 8x8 VN-1 armoured personnel carriers including a command post version. The VN-1 is the export version of the ZBL-09. It is armed with a 30-mm cannon and includes the capability to launch anti-tank missiles. The next delivery, which is scheduled for early 2015 will include further VN-1’s as well as the VN-18 tracked infantry fighting vehicles. The VN18 is the export designation for the ZBD-2000. Minister of Defence

Vladimir Padrino Lopez announced that the 2015 deliveries will also include four VN-16 light tanks, which is based on the VN-18 but armed with a 105 mm stabilised gun also capable of firing antitank missiles. As part of the 2012 contract, the Venezuelan Marines are expected to receive the SR5 122mm multiple rocket launcher and 81-mm and 120-mm selfpropelled mortars. Exact quantities have not been disclosed. The Venezuelan Marines currently deploy 37 ENGESA EE-11 6x6 APC’s and a few remaining LVTP-7A1 tracked amphibious vehicles of 11 delivered in the 1970s. The Navy had originally selected

the Russian BTR-80 8x8 APC, BMP3F IFV, BM-21 Grad 122-mm MRL, 2S23 Nona 120-mm self-propelled mortar and 2S19M-1 MSTA-S selfpropelled howitzer for the Marine Corps, but changes in Venezuela’s procurement policy in 2012 led to re-selection of Chinese options. This is the second procurement of Chinese armour by Venezuela, with deliveries of 141 NORINCO VN-4 4x4 armoured personnel carriers taking place from 2013. That order comprised 10 examples a piece of the WTC-1 water cannon version and the ABV-1 anti-riot version.

Uruguayan army deploys Turkish ground surveillance system Iñigo Guevara

he Uruguayan Army

announced on December 23 that it has fielded a new land surveillance system composed of five mobile units based on a Land Rover platform. The system is composed of the Aselsan ACAR tactical radar that allows the detection of objects, including individuals, land vehicles and low flying helicopters at ranges up to 40 km. The vehicles are also equipped with a telescopic mast mounted thermal sight, laser range finer and CCTV.

An initial 67 personnel are being trained on the system and these will work in 8-hour shifts. The system will be deployed to begin surveillance of Uruguay’s land border with Brazil. The Uruguayan Army plans to eventually upgrade the system providing it with satellite communications and a new command and control software. The Aselsan radars were ordered in 2013 and are the first known Uruguayan procurement of a Turkish defense system. They add

to the delivery of a new Elta 2106NG tactical air surveillance radar to the Uruguayan Army in February 2014.

Aselsan ACAR tactical radar

Defence Industry Bulletin :: 8

Land WIN-T Deployed to Assist Ebola Fight Thomas Withington

he United States’ Army’s

new WIN-T (Warfighter Information Network-Tactical) communications network took an important step forward during the final months of 2014 when it was deployed to West Africa to assist the US response to the ongoing Ebola epidemic there. WIN-T is designed to provide mobile, digital communications for deployed US Army forces. Principally, WIN-T handles voice, data and imagery traffic using Satellite Communications (SATCOM) at-the-halt and on-themove. WIN-T is being procured in four distinct increments: Increment-1 provides SATCOM at-the-halt down to battalion level, enabling voice, data and imagery communications. This is achieved using Ka-band (26.5-40GHz for uplink/18-20GHz for downlink) SATCOM via the US Department of Defence Wideband Global Satellite constellation. The US Army began fielding WIN-T Increment-1 in 2004 and since then it has supported combat operations in Iraq and Afghanistan. WIN-T Increment-1 is now in service across the US Army. While WIN-T Increment-1 focused on the provision of voice, data

and imagery SATCOM at-the-halt, WIN-T Increment-2 takes this further by introducing on-themove SATCOM. Deployment of WIN-T Increment-2 commenced in July 2013 with the US Army’s 10th Mountain Division in Afghanistan. The architecture for WIN-T Increment-2 sees selected vehicles at battalion and above levels outfitted with mobile SATCOM systems. This translates into formation sizes of around 800 troops spread across four companies with around ten of there vehicles being equipped to handle WIN-T Increment-2 SATCOM onthe-move. WIN-T Increment-2 facilitates mobile SATCOM at the brigade, division, battalion and company level. In a nutshell, users will have the ability to use mobile, self-forming SATCOM networks without having to stop and establish them. WIN-T Increment-2 is currently being rolled out across the US Army. WIN-T Increment-3 is still in the research and development stage. This initiative focuses on ensuring high standards of communications security and encryption for the WIN-T network. It will also work to ensure that WIN-T networks can function across ever-lengthening

ranges to ensure that the network can provide mobile SATCOM to a dispersed force operating in isolated areas anywhere on earth. General Dynamics is the prime contractor for the WIN-T initiative. During Operation United Assistance, the US military deployment to help the fight against the Ebola epidemic in West Africa, the US Army deployed parts of its WIN-T Increment-1 and Increment-2 (see above) infrastructure. In terms of Increment-1, this has included at-the-halt communications and the mobile network backbone that forms part of the WIN-T Increment-2 architecture. Given the wide and isolated areas in West Africa where US forces have deployed to assist in the construction of hospitals; the primary mission of Operation United Assistance, the need to have SATCOM where often no local electronic communications facilities are available has been paramount. Moreover, the deployment of the WIN-T SATCOM network has allowed the timely sharing of mission-relevant information and communications, helping to improve overall situational awareness.

U.S. Army readying RFP for global media business Oliver Austin

he U.S. Army is understood

to be readying an RFP for its global media business in a contract valued at around $500m. An army rep told U.S. media magazine Adweek that “overall marketing spending on the business is $184 million to $200 million annually” and that the government pact is “a one-year contract, which is renewable for four years, effectively making it a possible five-year working relationship.” An RFI to find prospective agencies originally went out in

9 :: Defence Industry Bulletin

June 2014, while it is expected that Army programme managers will make their final selection by March 2016 after an intensive assessment period. The proposed business will include marketing, advertising and public affairs support for the service. The outgoing incumbent agency, McCann Worldgroup, has held the account for several years since 2005 (last renewing its contract in 2011) and is again participating in this latest competition. However, controversy emerged in 2013 when

Mike Hughes, President of The Martin Agency – a subsidiary of Interpublic Group of Cos. (IPG) and the parent to McCann – was quoted openly criticising the Army’s culture, while insiders indicated that the relationship between agency and client was less than easy. Hughes passed away later that same year. Other finalists among the last review included DraftFCB and WPP agencies Grey and Y&R.

Land France awards the development of next 6x6 AFVs for French Army Victor M.S. Barreira

he French armament

procurement arm DGA (Direction Générale de l´Armement) awarded the temporary consortium of companies (Groupement Momentané d’Entreprises or GME) formed by Nexter Systems, Renault Trucks Defense (RTD) and Thales Communications & Security a contract worth €752 million to work on the French Army’s future 6x6 modular armoured combat vehicles. The contract covers development, qualification, production and logistical support. To fulfill the contract, the three companies set up the consortium in January 2014. The long awaited contract was officially announced on 5 December at the Army’s 27th Mountain Infantry Brigade during a ceremony presided by the French Defence Minister Jean-Yves Le Drian, the head of DGA Laurent Collet-Billon, and the Chief of Army Staff General Jean-Pierre Bosser. The project known as EBMR (Engin Blindé Multi Rôles) MultiRole Armoured Vehicle calls for the acquisition of a total of 1722 VBMR multirole armoured vehicle and 248 armoured reconnaissance and fighting vehicle as part of the country’s SCORPION modernisation programme with the aim to arm joint tactical groups GTIA of the Armée de Terre. The VBMR is now known as Griffon, with the EBRC called Jaguar. Nexter Systems is responsible for providing the vehicle’s chassis and body shell, ballistic protection solutions, CBRN protection system, interior design, weapon system control electronics and the protected turret for the Jaguar, as well as carrying out final assembly of the systems. RTD is in charge of powerpack, drivetrain, suspension, steering, brakes and wheel assemblies, electrical power generation, test equipment,

auxiliary power units and the remotely controlled weapon stations, and is also responsible for managing all replacement parts for the three companies and delivering them to military units. Thales Communications & Security will deliver the vehicle’s electronic architecture network, CONTACT (COmmunications Numériques TACtiques et de ThéâtrE) software-defined tactical radio, digital intercom system, BARAGE (Brouilleur Actif et Réactif Avec GoniométriE) jammer, situational awareness system, self-protection suite and navigation system and to supply several mission payloads including mast-mounted day/night sight and laser target designator coupled to Ground Observer 12 (GO 12) battlefield surveillance radar for the Griffon VOA (Véhicule d’Observation de l’Artillerie) artillery observation vehicle.

Griffon and Jaguar 6x6s will replace several of the armoured vehicles now in service with the French Army (Nexter Systems/RTD/Thales Communications & Security)

Other companies such as MBDA France, Optrolead, Texelis and Sagem will also be involved as main suppliers for the project. Nexter Systems and RTD already work together on the VBCI 8x8 infantry fighting vehicles delivered to French Army, and CAESAR (CAmion Equipé d’un Système d’ARtillerie) truck-mounted 155mm selfpropelled artillery systems supplied to the armies of France, Indonesia and Thailand. Both VBCI and CAESAR weapon systems of French Army also feature the PR4G tactical radio of Thales Communications & Security.

The Griffon will be delivered in different variants including CBRN (Griffon NRBC), cargo (Griffon RAV), engineering (Griffon Génie), mortar carrier (Griffon MEPAC), artillery observation (Griffon VOA), command post (Griffon PC), medical evacuation (Griffon EVASAN), as well as troop transport (Griffon VTT) in several sub-variants with the aim to replace the current VAB family of 4x4 vehicles, with the first Griffon VTT to enter service in November 2018. The vehicle will feature MDE8 diesel engine of Volvo with 400hp and automatic transmission of ZF Friedrichshafen. The vehicle will be fitted out with two rear-mounted light machine guns, and a remote weapon station armed with 7.62mm or 12.7mm machine gun, or 40mm automatic grenade launcher. Six prototypes will be built with first ready in 2016. The Jaguar will progressively replace the AMX 10RCR and ERC 90D Sagaie 6x6 armoured reconnaissance vehicles from 2020, as well as the 4x4 VAB HOT antitank vehicles, which are equipped with MÉPHISTO (Module Élévateur Pour HOT Installé sur Tourelle Orientable) remote turret armed with four ready-to-fire HOT 3 missiles. It will be outfitted out with two-man operated T40M protected modular turret featuring 40mm CTAS (Cased Telescoped Armament System) automatic cannon from CTA International (joint venture of Nexter Systems and BAE Systems), Lacroix/Nexter Munitions Galix 80mm smoke dischargers, two modified Sagem Paseo stabilised panoramic sights, one erectable missile launcher armed with two ready-to-fire MBDA MMP (Missile Moyenne Portée) medium-range anti-tank missiles, and remote weapon station armed with FN Herstal MAG 58 7.62mm light machine gun.

Defence Industry Bulletin :: 10

Land

The French defense authorities delivering the EBMR contract to the consortium formed by French companies Nexter Systems, RTD and Thales Communications & Security (Victor M.S. Barreira)

Three prototypes will be built with first ready in 2017. The design incorporating active suspension offers a weight of 22.5t, length of 7.1m, width of 2.9m, 90km/h top speed and maximum range of 800km. Its powerpack consists of MD11 diesel engine of Volvo with 490hp coupled to automatic transmission of ZF Friedrichshafen. Both Griffon and Jaguar also will include mine and ballistic protection superior to NATO standard, acoustic gunshot detection and localization system, SICS (Système d’Information du Combat SCORPION) information system, and provisions for onboard simulation training. Both can be

outfitted out with slat-armour. The SCORPION programme will be implemented in two phases. The first - worth €5 billion and taking place until 2025 - will comprise the receipt of 780 Griffon and 110 Jaguar vehicles, 200 VBMR Léger 10-ton-class lightweight tactical armoured vehicles from 2021, the modernisation of 200 Leclerc main battle tanks to Standard 1 configuration, implementation of first version of SICS information system (replacing SIR, SITEL, MAESTRO, SIT V1, SITALAT and SITCOMDE). Training services, infrastructure, evaluation and qualification, and initial support will be also delivered.

France orders new GM-403 Radars Thomas Withington

he Armée de l’Air (AdlA/

French Air Force) is due to receive twelve new Thales GM403 ground-based air surveillance radars, the firm announced in a press release published on 11th December 2014. The order also includes the provision of four of the company’s GM-200 air surveillance radars, associated installation and engineering work and through-life support of the radars. The GM-403 is a mobile radar which forms part of the company’s GM-400 air surveillance radar family, which also includes the static GM-403 system. Both radars operate in the S-band (2.3-2.5/2.73.7GHz) radar and have a range of circa 211 nautical miles (390 kilometres) and a surveillance ceiling of 100,000 feet (30,480 metres). The GM-406 is thought to have a slightly longer range compared to the GM-403. GM-400 radars use Active Electronically Scanned Array (AESA) antennae and can detect tactical ballistic missile targets, in addition to conventional air-breathing threats. To date, the AdlA has received three static GM-406 radars. They are located at its Mont Verdun airbase in Lyon in eastern France, which is home to the South Sector Air Defence and Air Operations Command component

11 :: Defence Industry Bulletin

of the SCCOA SCCOA (Système de Commandements et de Conduite des Opérations Aériennes/Air Operations Command and Control System) command and control (C2) system. SCCOA protects the air sovereignty of metropolitan France and her overseas territories, and can also be used for air campaign planning and C2. A second GM406 radar is based at the AdlA’s Capitaine Auder airbase outside the city of Nice on the French southern Mediterranean coast. This base is also part of the SCCOA C2 network and houses an air detection and control centre to protect the skies of south-eastern France. The third radar is located in the French Guiana overseas territory in Latin America where it is used to protect the skies surrounding the Guiana Space Centre, from where the European Space Agency launches rockets. The GM-406 radar for French Guiana was ordered in February 2013, and was declared operational in November of last year. According to a written statement supplied by Thales, the deliveries of these GM-403 radars ordered in December 2014 will commence in 2017 and are expected to conclude in late 2021. Given the mobile characteristics of the GM-403 it is expected that they will be

used to protect deployments of French and allied troops abroad during unilateral and multilateral operations. In addition, they could be used to help protect high profile events at home such as sporting occasions or summit meetings.

The Thales-made GM-403 Radar

Additional supplies of static GM406 radars could occur in the near future, in particular to replace the existing radars equipping the Tours/Cinq-Mars-la-Pile airbase in central France, the airbase at Mont-de-Marsan southwest France and Drachenbronn airbase in north-eastern France; all of which house C2 facilities supporting SCCOA. These installations are thought to be presently equipped with Thompson-CSF (now Thales) Palmier/Ares two-dimensional L-band (1.215-1.4 gigahertz) air surveillance radars which have an instrumented range of circa 216nm (400km).

‘It is important to attend Future Artillery 2015 to understand the current/future status of international weapons, platforms, ammunition, precision ammunition, fire control, and target acquisition systems’.

First 50 servin officers to reg g is and 1* Genera ter ls and above may att end conference fre the e of charge

- Peter J. Burke, Deputy Project Manager Combat Ammunition Systems, US Army

The World’s Leading Joint Fires Conference Main Conference: 23rd - 24th March 2015

www.future-artillery.com

Post-Conference Workshops: 25th March 2015 Location: London, UK

SPEAKERS INCLUDE:

Taking Firepower Forward

Major General Cunha Mattos Divisional Artillery Commander of 6th Division Brazilian Army

Brigadier Simon Humphrey Director Combat Support British Army

Brigadier General William A. Turner Field Artillery Commandant US Army

Brigadier Genral Alfredo Sanz y Calabria Director, Spanish Artillery School Spanish Army

Major General Menelaos Meimaris Director of Artillery Directorate/ HAGS Hellenic Army

Brigadier Andrew Harrison DSO MBE Chief, Joint Fires and Influence Branch HQ ARRC NATO

Colonel Jaroslaw Kraszewski Chief of Field Artillery Polish Army

Colonel Manfried Dietmar Felber Head of Section of Joint Fire Support/Indirect Fire Army Concepts and Capabilities Development Center German Army

A unique opportunity to meet with the pillars of the international artillery community at this world renowned artillery conference. Our distinguished experts will: B

Highlight the increasing significance of interoperability and the role of joint fires in order to ‘win in a complex world’, with presentations from NATO AARC, US Army, British Army and the German Army

Discuss developments in precision, range and communication technology to counteract the increasingly resilient and versatile enemy. Keep up-to-date with the latest offerings to maximise potential and minimise cost to enable you to keep up to date with the latest offerings in ammunition and technology to maximise potential and minimise cost

Overhaul current and future training initiatives to defeat ‘the unknown and the unknowable’ including multi-national cooperation to increase your operational readiness, with detailed insight from the Spanish Artillery School and dedicated workshop sessions

“The Future Artillery conference is a unique opportunity to achieve an international common understanding for all stakeholders, should they be operational or industrial representatives. A great occasion to meet this year to discuss the very challenging joint fires issue.” - Major Charles Tardy-Joubert; French artillery capability branch/Joint Fires integration.

Explore key case studies in international artillery and look at the nature of subsequent conflicts to discover best practice and prepare your force for the future

www.future-artillery.com | enquire@defenceiq.com | +44 (0)20 7368 9737

Sponsors Defence Industry Bulletin :: 12

Naval Finmeccanica-OTO Melara presents new HITROLE 20 20 mm naval turret Eugenio Po

Photo: BDSL/Algerian Navy

nder a newly signed

agreement with the Siham Alkhaleej, Finmeccanica-OTO Melara is developing a new naval remote controlled turret, designed on the HITROLE 20 and armed with a 20 mm Gatling cannon. This new

system, presented for the very first time during the Euronaval exhibition in Paris, fills the gap between the .50 light HITROLE turrets and the heavier 30 mm MARLIN turrets. The basic configuration of the HIROLE 20 is equipped with a 20 mm (20x102) 3 barrels M-197B Gatling gun and has an overall weight of 600 kg. With a maximum rate of fire of 750 rounds for minute and a reserve of 750 munitions the system can be used for 15/20 successive engages. The ideal use of this new turret is for anti piracy missions. The 12.7 mm Heavy Machine Guns (HMG) are spreading all over the world, even the poorest pirate groups can afford a 3rd world copy of the Russian HMGs, so the ships must be equipped at least with a 20 mm gun weapon

to have a longer range than the .50/12.7 mm HMGs. The idea seems to be attractive: apart from Italy and the UAE, which will be the first customers of the HITROLE 20, several other countries have also showed interest in the turret.

Italy and the UAE will be the first customers Finmeccanica-OTO Melara is already working on a couple of other developments, a version with 20 mm (20x102) 6 barrels M-61A1 gating gun and another one armed with 30 mm (30x113) ATK chain gun M-230LF.

“New Training Academy” from Fincantieri Eugenio Po

incantieri and the

Italian Navy have signed an agreement for the Fincantieri Training Academy (FTA), a new training solution suited for medium and small navies that combines the expertise of an international company and a first class navy. For this new academy, the headquarters of which is in a former barracks in La Spezia, Fincantieri was inspired by similar aeronautical solutions such as

AgustaWestland’s helicopter Training Academy in Sesto Calende (Varese). The main headquarters occupy an area of over 400 m2 and is designed to train sea navigation and to fight with all kinds of weapon systems. Up to now the training courses are limited to surface ships training, but in future it will be extended to submarines. The Italian Navy will complement Fincantieri ‘s more “industrial” courses with much

more operational types of courses. Some of the Italian Navy activities will be held in the Taranto area where most of the Italian training infrastructures are concentrated. The new FTA has already started its activities with a training course for the Algerian Navy’s crew of the new LHD (Landing Helicopter Dock) KALAAT BENI ABBES it had recently delivered.

Peru increasing heavy naval capabilities Iñigo Guevara

n early December, the

Peruvian Navy (MGP) took delivery of the 17,000-ton BAP Tacna, the former Dutch Navy Amsterdam replenishment ship. BAP Tacna is armed with a Goalkeeper 30-mm CIWS,

13 :: Defence Industry Bulletin

embarks three Agusta Bell AB 412 multi-role helicopters and can also act as a mother ship for maritime interdiction operations, transporting multiple RHIB’s. On December 22, local shipyards SIMA launched the 3,000-ton BAP

Union, Latin America’s largest Sail Training Ship. In addition, the SIMA shipyards continues to build the 7,300-ton Makassar-class LPD’s BAP Eten and BAP Pisco, which are expected to join the fleet in 2016 and 2017 respectively.

Naval Finmeccanica-WASS new torpedoes and sonars Eugenio Po

ASS, Finmeccanica’s

company devoted to underwater systems, is working on a series of new products. The first is a new lightweight torpedo, called BLACK ARROW, which is an evolution of the FLASH BLACK technological demonstrator designed around Italian Navy specifications. The main Italian Navy requirement is to have a weapon with similar (or the same) performance as the MU90 lightweight torpedo already in inventories with a lower life-cycle cost.

The BLACK ARROW is an antisubmarine weapon but can be used to attack surface ships and also used as an anti-torpedo system. The initial development of this weapon is already financed by the new Navy Law (“Legge Navale”) approved recently by Parliament and assuring extra funding for some Navy and industry strategic programmes. An entirely new project is the mini-torpedo called BLACK SCORPION, a non-lethal weapon designed to attack hostile submarines without direct hitting but by detonating far away. The

BLACK SCORPION has a diameter of 127 mm (5 inches) so is fully compatible with the majority of the soft-kill anti-missile system launchers, but can be easily adapted to be carried by helicopters. Finally, Finmeccanica-WASS is working on the new BLACK SNAKE anti-torpedo towed sonar, a system that will be on-board the new PPA (Pattugliatore Polivalente d’Altura), big combat OPVs and new LHD (Landing Helicopter Dock) the Italian Navy is finalising.

The US agrees to transfer frigates to Mexico and Taiwan Victor M.S. Barreira

fter the idea was

introduced in February 2013, US Congress has approved the potential transfer of Oliver Hazard Perry-class anti-submarine warfare frigates to Mexico and Taiwan. The Taiwanese Navy operates eight modified Oliver Hazard Perryclass frigates, all built by the China Shipbuilding Corporation. Under the Naval Vessel Transfer Act of 2013, the transfer set up on behalf of US Excess Defense Articles (EDA) scheme was approved by President Barack Obama and will see the potential grant of frigates Curts (FFG-38) and McClusky (FFG-41) to the Mexican Navy, and frigates Taylor (FFG-50), Gary (FFG51), Carr (FFG-52) and Elrod (FFG-55) to Taiwanese Navy. The proposed transfer to Thailand of frigates Rentz (FFG-46) and Vandergrift (FFG-48) failed. Pakistan and Turkey have previously expressed interest in procuring USN similar units. While there have been 51 frigates of the Oliver Hazard Perryclass built by Todd Pacific Shipyards Corporation and Bath Iron Works with the first going into service in 1977, the USN has since reduced the fleet to Vandergrift (FFG-48), Taylor (FFG-50), Gary (FFG-51), Elrod (FFG-55), Simpson (FFG56), Samuel B. Roberts (FFG-58),

our of Turkish Gabya-class frigates now feature RIM-162 ESSM missile system and SMART-S Mk2 radar, here TCG Gediz (Cem Devrim Yaylalı)

Kauffman (FFG-59) and Rodney M. Davis (FFG-60), however they will be decommissioned during 2015. It is not known if the ships will be granted to Mexico and Taiwan equipped with their Mk 38 Mod 2 remote controlled weapon station, Mk15 Phalanx Block 1B close-in weapon system, 76/62mm artillery and Mk 32 torpedo launchers installed. If the transfer succeeds, it is understood the ships could be upgraded at a later stage with new sensors, electronics and eventually armament. The transfer costs will be charged to the recipients and the necessary repair and refurbishment carried out in the US. The Oliver Hazard Perry-class

design is currently fielded by the navies of Australia, Bahrain, Egypt, Pakistan, Poland, Spain, Turkey and the US. Turkey has locally upgraded its eight Gabya-class frigates adding modern equipment including Havelsan GENESIS (Gemi Entegre Savaş İdare Sistemi). TCG Giresun (F491), TCG Gediz (F495), TCG Gökova (F496), and TCG Göksu (F497) received the 8-cell Raytheon Mk41 Mod 2 vertical launching suite for Raytheon RIM-162 ESSM surface-to-air missiles in addition to the existing Mk13 Mod 4 launcher for RGM-84 Harpoon antiship missile and RIM-66 SM1MR surface to-air-missile.

Defence Industry Bulletin :: 14

Air Reapers on the shelf as industry awaits clarity on UAV regulations Angus Batey

irspace integration - the

ability to legally and safely fly unmanned aircraft in the same airspace, and at the same time, as conventional manned aviation - has been the Holy Grail of the unmanned systems industry for years. But it is not just the manufacturers and operators of unmanned and remotely piloted air systems (UAS and RPAS) intended for civilian applications who are having to factor it into their thinking. With the end of the ISAF mission in Afghanistan, western militaries are relocating their RPAS fleets: but, unlike with their manned platforms, putting the squadrons on a timetable of training and exercises at home until the next deployment is often not an option. One example: the Royal Air Force’s fleet of General Atomics-built MQ-9 Predator B/Reaper aircraft. Following Britain’s withdrawal from Afghanistan, at least two of the UK’s Reapers have been redeployed to Operation Shader, the UK’s mission against Islamic State. But Reaper is not certified to fly outside combat zones, and in a response

Many of the RAF’s MQ-9s are being placed in storage

15 :: Defence Industry Bulletin

to a Freedom of Information Act request by Dronewars.net (a website that campaigns against the use of military UAS) the Ministry of Defence have confirmed that an unspecified number of the fleet will be placed in storage in the UK. As well as airworthiness certification, another key issue is the need for an unmanned aircraft to exhibit an equivalent capability to a manned platform to avoid a collision. General Atomics has also been working on a sense-and-avoid system for Reaper, and has been testing it in collaboration with the Federal Aviation Administration and NASA in California. Northrop Grumman is incorporating similar systems on the in-development Triton, the US Navy variant of its Global Hawk. But those are large aircraft with enough space and power on the airframe to field complicated and extensive systems. Smaller aircraft cannot rely on systems such as T-CAS or radar. The lack of a sense-and-avoid solution may be surprising given how long the need for one has been acknowledged: yet industry appears reluctant to invest too much time

and money developing a system before airspace regulators have indicated what technical standards a sense-and-avoid system will have to meet in order to be cleared for use. Gerry Corbett, the UK Civil Aviation Authority’s UAS lead, acknowledges the catch-22, and suggests a couple of possible ways forward. “Somebody needs to do a study about how good the human is, to define what the requirement is,” he told the Defence IQ UAS Training and Simulation Conference in London in November. “At the end of the day, we’re only replacing the windows in the aircraft and the pilot’s look-out. What we need to do is get to a stage of knowing how good or how effective and capable that is. We’re not after something that is all-singing, all-dancing, will solve every single problem: it’s just got to basically replace what is still the pilot’s responsibility to avoid collisions. That’s the challenge. If you can come and prove that you can do it safely, and show us the numbers, then we can go from there - but people aren’t doing that at the moment.”

Air Italian Army Aviation and AgustaWestland reveal details on Mangusta replacement Eugenio Po

he Italian Army Aviation

(AVES, AViazione dell’ESercito) has released the first details of the new combat helicopter selected to replace the AgustaWestland A-129D, the latest evolution of the Mangusta(Mongoose). The new machine, called X-29, will be a derivative of the latest A-129D version operated by Italian Army. Eight A-129D, a retrofitted evolution of the previous A-129C, have already been delivered and some of them were tested in operations in Afghanistan. According to the Italian Army, the X-29 must fly 15-20 knots faster

to operate with the NH-90 TTH (Tactical Transport Helicopter) and the CH-47F CHINOOK and must have a higher payload to carry more weapons or fuel. AVES would like to have a helicopter able to stay longer on the target, which is why AgustaWestland is studying a machine of 5.5 tons class. The current AW-129 has a Maximum Take-Off Weight of 4.6 tons, while the Turkish T-129 ATAK has a MTOW of around 5 tons, so the new machine will probably be a further upgrade on the Turkish airframe, sharing the same engines of the ATAK.

Starting from an A-129D platform and taking into account most of the upgrades of the T-129, it is a good approach to achieve better performance while reducing costs. Regarding the weapons, the X-29 will use the SPIKE ER anti-tank missiles (with the TOPLITE III sight unit), together with guided rockets and will retain the M-197B turret armed with 20 mm three barrels Gating gun.

Russia swooping in on Indian helicopter contracts Joseph Carpenter

s the Western world

continues to enforce trade sanctions on Russia in the wake of its involvement in Ukraine, December saw India draw closer to its northern neighbor with a series of economic deals valued at $100bn, including several defence agreements that may contain the rights to multiple Indian helicopter programmes. President Vladimir Putin met with Indian Prime Minister Narendra Modi in Delhi and shook hands over a $40bn nuclear energy pact and a $50bn crude oil and gas deal. Among the $10bn worth of additional paperwork, there is a possibility for India to claim production license on the Russian Kamov Ka-226T helicopter – a competitor for the much-delayed Reconnaissance Surveillance Helicopter (RSH). The willingness for the two nations to work together could therefore see competition from the likes of Airbus Helicopters’ AS550C3 Fennec and the Bell 407 shut out. If Russian parties secure

the programme, it is likely that a partnership agreement will also be enacted between them and India’s state-run Hindustan Aeronautics (HAL), with production of up to 400 aircraft a year continuing on home soil. Meanwhile, India has sought production licensing of Mi-17 helicopters, to which Russia appears willing to green light. Two orders have already been placed but further potential in the platform is being considered by the Indian Navy as it looks to fulfil its Multi Role Helicopters (MRH) requirement – another postponed programme. Sikorsky’s S-70B has already been selected under the MRH programme, but only to meet the need for new anti-submarine warfare requirements. Given the reputation India has had in recent years for slow-paced defence programme development, as well as for cancellations and incidents of controversy, Russia will need to remain patient should it embark on any new ventures in this domain.

The Ka-226T may soon become India’s RSH

These closer ties have of course been spurred by a cold front in the West, but India has also been greatly concerned over Russia’s recent willingness to seek new multilateral deals and political agreements with Pakistan. As reported in November, Moscow has “politically approved” a deal to sell a batch of Mil Mi-35 ‘Hind E’ heavy attack helicopters to Pakistan.

Defence Industry Bulletin :: 16

Cyber Sony’s data leak sets new precedent for ‘critical’ data protection Angus Batey

British and American defence officials have, at different times in recent years, pointed the finger at China and Russia as being among nations to direct or sponsor hacks on western governments and contractors. Yet none of these attacks have triggered a response by a company’s host government. The reasons why the Sony/ Interview incident has provoked a different response are not entirely clear, though Obama stressed the restriction imposed on Sony’s right to freedom of expression guaranteed under the American constitution - and implied this may have been the key determining factor.

US Federal investigators have traced the Sony breach to IP addresses used exclusively by North Korea

t first glance, there seems

no particular reason why the defence industry should take much notice of the crisis experienced late in 2014 by Sony Pictures. The Hollywood film studio suffered an attack by hackers; stolen data included scripts of future releases, private emails to and from employees, and personal details of staff. The material was posted to the internet. So far, so familiar: yet what followed transformed the Sony hack from merely the most recent major incident of this kind facing a private company, into a national security issue for the United States. In mid-December, after posts appeared online in which threats were made against the Christmas Day release of a new Sony film, The Interview, the studio cancelled the release. The company later said the decision had been taken after cinema chains pulled out, citing concern for staff and customers. The Interview, a comedy, follows two American filmmakers who secure an interview with North Korean leader Kim Jong Un and are then recruited by the CIA to assassinate him.

17 :: Defence Industry Bulletin

Following the cancellation, and claims of proof (cited by the FBI) that the hackers had links to the North Korean government, President Barack Obama got involved in the debate. He was careful to describe the attack as “an act of cyber vandalism” rather than an act of war, but promised that the US would respond “proportionately”. That response arrived early this year, with US sanctions imposed on a number of individuals and institutions within the North Korean government. The defence industry has been the subject of massively disruptive, often commercially damaging attempts to penetrate classified and confidential networks for over a decade. During a presentation at the Farnborough Air Show last year, Ann Mullins, a former Chief Information Security Officer at Lockheed Martin and now Vice President of the company’s Information Business Global Solutions portfolio, said that the company was, as of July 2014, monitoring 40 long-term persistent attacks on its networks, 13 of which had been tracked since 2006.

Critical national assets in cyberspace aren’t limited to banks and energy providers Yet the main lesson for defence here is probably nothing to do with how and when the state will step in, or the complicated questions around attribution. Rather, the episode reinforces that even household-name companies that are not traditionally thought to be a part of a nation’s infrastructure may require the kind of intrusiondetection tools and advice on minimising the impact of network breaches that had previously only been required by entities operating in higher-security markets. It also shows that governments may be starting to see that critical national assets in cyberspace aren’t limited to banks, energy providers and organs of the state.

FI PER SO OR RST 5 NN 0 EL GOVE MILI ATT RN TA R EN M D F ENT Y OR FRE E!

AFSEC

African Security:

The African Coastal Surveillance and Maritime Security Summit

Pre-Conference Focus Day: 17th February 2015 Main Conference: 18th - 19th February 2015 Venue: Djibouti Palace Kempinski, Djibouti

Re-visiting the Djibouti Code of Conduct to Develop Cooperative Strategies Towards Maritime Security in East Africa

Major General Ngewa Mukala, Commander, Kenyan Navy

Major General Ahmed al-Ashwal, Chief of General Staff, Republic of Yemen

Brigadier Leopold Payet, Chief of Defence Forces, Seychelles People’s Defence Forces

Rear Admiral Hervé Bléjean, Admiral International Relations and Partnerships, French Navy HQ

Major General Ahmed Shiyam, Chief of Defence Force, Maldives National Defence Force

A HIGH LEVEL MULTI-AGENCY FORUM FOR THOSE INVOLVED IN EAST AFRICAN MARITIME SECURITY AND REGIONAL DEFENCE COOPERATION This unique forum will enable senior representatives to promote regional cooperation for the purposes of enhancing maritime security and preventing terrorism. It will also help those involved in regional maritime security to exchange best practice, coordinate activity, and to begin crafting a series of strategies against future irregular maritime threats. ATTENDEES WILL: f Shape the debate on how to challenge irregular maritime threats in the region

and sub-regions

f Build the cross-cutting, international and multi-agency relationships required in

the fight against transnational organised crime

f Gain a deeper understanding of the unique East African military and security

environment f Debate the benefits and challenges of information and intelligence sharing f Develop a clear picture of international capacity building initiatives active in the region Featured Exhibitor

The day will be hosted at the DRTC, a building funded through the Djibouti Code of Conduct trust fund to respond to training needs. See page 4 for more information.

“AFSEC 14 was an excellent platform to foster cooperation and exchange ideas” Commodore Senghore CNS, Gambian Navy

Conference Sponsor

www.afsecevent.com

Pre-Conference Focus Day at the Djibouti Regional Training Centre (DRTC)

+44 (0)20 7368 9737

enquire@defenceiq.com

Defence Industry Bulletin :: 18

The Briefing Room Defence Industry Bulletin casts its eye towards Sweden and interviews two of the nation’s leading defence executives: the heads of FXM and FMV.

FXM

FAMOUS LAST WORDS? In an interview undertaken in August 2014, DIB correspondent George Mader met with Ulf Hammarström, Director of the Swedish Defence and Security Export Agency (‘FXM’), whose primary role is to promote arms exports. Just two weeks after this interview, parliamentary elections saw into power a new coalition government consisting of the Social Democratic Party and the Green Party. Then, on September 30th, the government announced plans to shut down FXM. After months of negotiations, the latest declaration at time of writing has been that FXM “is to remain” owing to the Alliance Parties’ budget bill being adopted by the Riksdag (Parliament) at the re-election on the budgetary framework on December 3rd. There is, however, no indication as to how long FXM will be sustained. Clearly, it is a turbulent time for the Agency. In the interest of historical insight, here, unabridged, is what Mader and Hammarström discussed before the chaos ensued… DIB: I’ve long been interested to know why and when the Swedish authorities created FXM as its own body. Was there a rising need to shoulder Swedish development – and acquisition – costs with others or was there a more unified export strategy? HAMMARSTRÖM: The background is that Sweden traditionally always had – and still has – a lofty defence ambition. With a history of having faced the Soviet Union and the Warsaw Pact as a non-aligned nation, and given their benchmark as the biggest military power or alliance that the former world has so far seen, we had this desire to defend ourselves in the best and most efficient way. This of course led to the creation of a very capable, diverse and skilled defence industry. Many resources and much dedication was put into creating high-tech materiel and systems. But as we are (comparatively) a small country, this industry and its products also had to follow the principles of cost-effectiveness and innovation. Today, even the biggest nations out there understand that you

19 :: Defence Industry Bulletin

cannot sustain such an industrial base on your own defence budget alone. You need to export. If you export in a market area like defence, you have all the specifics of involving governments in various ways. Governments must be involved because it’s usually only them who are acquiring weapon systems. Since way back, the Swedish government had a very clear tandem ambition to privatise its defence industry and not to have it directly connected to the state. A state-run model would not be fit to run under competitive market conditions and remain cost-effective. Meanwhile, exports became more and more important as it became more and more obvious that a nation cannot ‘live on its own’. Of course the government has a role to play – to decide to where you can and cannot export. The Swedish government decided in 2010 that because we have this quite capable and innovative defence industry, which is critical to Swedish defence in the future, that it needed to create an extra agency that specialises in the governmental tasks of supporting and representing the government,

relating to the export matters of defence goods.

DIB: All of that perfectly explains and highlights the processes leading to the creation of FXM, but what are your ambitions now? Improved coordination? Greater efficiency? After all, Sweden has exported very successfully even before FXM was created... HAMMARSTRÖM: That is perfectly true. However, in the creation of FXM, the government had a higher ambition than to just restructure with new parts, departments or personnel from other defence agencies. It has indeed to do with coordination and efficiency. Before we were created, all national defence agencies had to support our industry in exports as a secondary role. It was then decided that they should instead concentrate on their main tasks at hand in supporting the Swedish military operations capability. So, FMV would concentrate on procurement, FOI on research, and so on. The ambition for us is to concentrate only on supporting our manufacturers in the export markets. Of course, as we are now

The Briefing Room the only entity to do this, we – a small staff of about 50 – can task the other agencies to support us as project managers. The government wants us to become a better partner to countries that we have exported to in the past, but it also wants us to help it, in itself, to become a better counterpart to the industry. That means to make sure that government becomes more professional in the competence area of military export matters.he export matters of defence goods.

DIB: So, this former ‘secondary role’ of for other parties did not turn out to be an ideal model for the future...? HAMMARSTRÖM: Not really. It was not something everybody did very well, which meant that for some, it fell from their priority list. Because there was no clear focal point, the government did not know how many resources were being used or by whom. There was no coherence or oversight. Everybody did a little here and there. Thus we were introduced to provide that oversight and direction.

DIB: So, what is the official ‘mission’ given to you now? HAMMARSTRÖM: There are two main missions. One is to support the defence industry’s exports and the other is to represent our Sweden in government-togovernment contracts. That makes us a bit different to other countries’ trade-support organisations. Besides that, one major priority given to us needs to be mentioned: we (should) support only exports that are beneficial to Swedish defence. Whatever industry wants us to do, we prioritise things in those terms – not for the benefit of he Armed Forces in particular, but to our all-encompassing national defence.

DIB: So, what is the official ‘mission’ given to you now? HAMMARSTRÖM: No. What we do is not about employment or growth in the Swedish economy as such. We are a support organisation for Swedish defence in the first instance, not primarily for Swedish industry. Better put, we are supporting our industry if the case is beneficial for Swedish national defence. Ultimately we operate under the MoD and are using defence funds, so there should, in the end, be a return on that.

DIB: So that means that for every programme, for every RFI and RFP, you focus chiefly on those aspects that may be protecting the country? HAMMARSTRÖM: Yes. But this goal towards strengthening our defence can be reached in various ways. It can be a cost-share because someone else is operating the same system, such as in our advanced, FMV-managed, pooling and sharing cooperation taking place with the Gripen user-community. That is, logistical support, provision of spares, and so on. Or the benefit may be to sustain an industrial capability which is important for national defence – for example, the modernization of a radarsystem that may maintained also for Swedish forces if another user happens to have bought it too. Another example: the recent extension of the Czech Republic’s leasing agreement for their Gripens has had a beneficial effect on pooling and sharing in the sustainment of flight-operations of the -C/D-version in the Flygvapnet (Swedish Air Force).

DIB: Swedish defence-exports increased by 22% in 2013. But if you compare this with SIPRI-figures – Stockholm-based research – this is ‘just’ 1.3% of the nation’s total economic income. How are the

defence exports seen in the media and among politicians? Do you see a stringent support in defence exports and national defence matters across the spectrum of political parties? And what happens if (or when) the government changes? HAMMARSTRÖM: You know, in general we are very much a trading nation and a society of engineers. My feeling is that there is strong and broad support for Swedish defence in general among the population. I also believe that there is support for the Swedish defence industry and that there is a level of national pride in its cost-effective capabilities – in the Gripen system and other legendary designs created before then. Like capable and reliable submarines.

There is strong and broad support for Swedish defence in general They are all an important part of our defence ability and there is an understanding that no country can sustain that kind of modern, competitive industry on its own. In parallel, defence spending in the Euro-Atlantic area is under constant pressure. So if you want to keep an industry like this affordable, you have to export. You have to look for cooperation with other countries. Gripen has been the best example of pooling and sharing with others, a fact noted by our politicians. If you look back on our history up to the present situation, you can see

Defence Industry Bulletin :: 20

The Briefing Room this is the case. For Swedish defence, there is a broad, common consensus. In the parliamentary defence commission, there is a constant review of the basic issues with a broad agreement on the outlines. We don’t have a culture of through-and-through changes in the whole approach towards the forces or the whole defence sector just because a new cabinet takes over. However, there is an ongoing public discussion on exports to non-democratic countries and whether one should regulate that in a stricter sense than the system does today. There is an ongoing parliamentary review that will soon conclude on that.

DIB: What does ‘non-democratic’ means in the case of this review? Kingdoms? Monarchies? Dictatorships? I mean, the majority of the nations on the planet are not ‘democratic’ in our Western European sense... HAMMARSTRÖM: While in that latter sense you are right, I believe this review to be a very good thing. It has been a long time since these regulations have been reviewed. When you have a job like mine, or when you are involved in this sector, you want to be sure that whatever you do is anchored and sits comfortably within the context of our values and regulations. This is an ethos now undertaken by our parliamentarians. Whatever comes out of it, it will resemble Swedish values and opinion. I would not want to work without this type of democratically-accepted regulatory agreement.

DIB: There is a Swedish state-run ‘Agency for Non-Proliferation and Export Controls’ (ISP). In simple terms, what they are tasked with sounds like it is contrary to your mission. Are their concerns mentioned by reviewers? Would you see them as your superiors or partners – or even adversaries?

21 :: Defence Industry Bulletin

Sweden’s Gripen continues to be adopted worldwide

HAMMARSTRÖM (laughing): No, ISP are not our adversaries. They are our ‘masters’! It is a very clear division of responsibility. They sit under the ministry of foreign affairs and have a different cabinet minister. They are involved in whatever activity we get involved in, providing this country and this product is okay by the export regulators. If a Swedish company asks as to help or support the export of a particular product into a specific country or a specific market, we will ask the ISP if this is something to which we can legally grant export-licence, and we do that before we support the company in their campaign or other marketing efforts over there. They give us the green- or red-light. It is a matter of resources and effectiveness, but it also represents a kind of principle that the government should not be involved in supporting something that in the end would not be allowed to deliver. We therefore have a very close relationship with ISP. We continuously consult with them on all our activities. We have no say in whether this company can export this article to here or there. We can argue – as mentioned – for the domestic defence benefits, but it is

ultimately their decision whether it should happen or not. They have a director-general as we have, but then they have an advisory body of parliamentarians comprised from all the political parties. The director-general can decide if he feels confident to decide on his own or if he needs to seek their advice, to have something to ‘anchor’ it in a parliamentary sense. They also have all the retrospective figures on our defence exports, based upon what systems left Sweden and when.

DIB: On top of that there also is a ‘Swedish Defence Industry Association’. What do they do? HAMMARSTRÖM: This is the industrial branch’s interest group, representing 60 or 70 Swedish manufacturers in dialogue with the government. We cooperate with them a lot, such as during trade exhibitions. When you want to have a dialogue with a particular industrial interest on a particular matter, instead of asking all the companies – or even with one that is not really representative – we will talk to this organisation and they provide a collective voice that represents all of them.

The Briefing Room DIB: Do you have a special focus on small and medium enterprises in the defence sector? HAMMARSTRÖM: Yes, of course. They might experience difficulties in knowing what is going on in the markets, or how staff changes among foreign procurement officials. We help them because they experience different challenges to those big companies who are represented in half a dozen countries. Traditionally, governments have worked with the big companies because of the political angle – foreign governments need to be assured that they have the backing of Sweden, sometimes requiring them to have decades of credibility. Therefore we try to give special attention to the SMEs to allow them to break in. This is done through providing them with marketknowledge, through representation at exhibitons, and so on. The next generation of enterprises and specialists do not fall from the sky; they emerge from the small businesses of today and their innovations. The supplier-base provided by small enterprises is also absolutely vital to a ‘healthy’

The next generation of enterprises and specialists do not fall from the sky; they emerge from the small businesses of today and their innovations

defence industrial base. Take cryptosystems, for example – ensuring a secured, uninterrupted, unjammed communication. That’s a very important item but one that does not usually come from the bigger enterprises. Thus, we do have to place an extra eye on these precious ‘diamonds’.

DIB: When we take the example of the Gripen contract currently being prepared for Brazil, I assume you are present within the negotiation team alongside FMV? Is this different from case to case? HAMMARSTRÖM: Yes, we work together with Lena Erixon’s people, but we lead the dialogue. We are responsible for the contract in relation to the government and we hold the economic responsibility. We don’t duplicate anything FMV does or vice-versa. There are also experts from the armed forces present who provide knowledge from an operational perspective. In this particular case, they tell us things like how many aircraft are needed for this kind of requested capability. Then there are the FMV experts for procurement within the negotiating-body, the legal specialists, and a number of others.

DIB: If a customer has a lot of offset intentions – if he wants many of the items to be produced within their country – is this something you also have to facilitate? HAMMARSTRÖM: The whole defence industry in Sweden is privatised. In Switzerland, for example, the government-togovernment contract – which was recently rejected by the country’s referendum on the matter – was dependant on industrial cooperation contracts between Saab and Swiss companies. However, we in FXM do not participate in industrial cooperation contracts. We want the national industry to be operating in their core area as much as possible because we believe this ensures competition.

DIB: In mentioning Switzerland, do you see the failing of that deal as a temporary setback? The Saab people at the Farnborough Air Show were relatively open when I met them and said that in a few years they will be back in Switzerland because the pressure they have to replace the F-5 remains unchanged. How do you see it? HAMMARSTRÖM: Well, Switzerland remains a country that is close to us and we have lot of good relations there. We learned a lot about each other during these negotiations. What mattered for me was that Gripen was selected under competition. The referendum was about the way they wanted to finance it, with this special Gripen fund. Therefore I have no reason to feel unhappy about the outcome because the referendum was not about the (quality of the) aircraft. I have full respect for that act of direct democracy. We still think this would have been a fantastic opportunity for both countries and we had an idea as to how we would work together over the whole lifecycle. How Switzerland now wants to go forward is down to them to find out.

DIB: Talking about other markets or world regions, where do you see the most potential for Swedish military products? HAMMARSTRÖM: While defence budgets were, until recently, going down on both sides of the Atlantic, the Euro-Atlantic region still remains our single biggest market. What is really growing is Latin America, parts of Asia and the Middle East. We will send you a ‘cake-diagram’ illustrating the shares for Swedish products on the world markets for the last 15 years.

DIB: Thank you very much, all the best for your – and Sweden’s – efforts. HAMMARSTRÖM: Thank you for visiting us and for your professional questions. It was a pleasure. Defence Industry Bulletin :: 22

The Briefing Room

Major Swedish systems delivered within the last ten years: South Africa: Gripen USA: Various, including portable anti-tank weapons (Carl Gustav) and marine C2 systems Netherlands: CV 90 Thailand: Gripen, Erieye AEW&C, C2 systems India: Carl Gustav and composite structures for ships Pakistan: Erieye Norway: CV 90 Finland: CV 90 France: BvS 10 UK: BvS 10 Switzerland: CV 90 Singapore: Submarines Denmark: CV 90 Saudi Arabia: Erieye Australia: Submarines and radars List by FXM

23 :: Defence Industry Bulletin

The Briefing Room

FMV

“I’m the one who asked Saab to go into submarines…”

-Lena Erixon, Director of FMV As explained, the Swedish MOD’s Defense Materiel Administration (Försvarets materielverk – or FMV) is responsible for providing support to the Swedish Forces with (preferably) Swedish technology or equipment acquired from overseas. It is also involved in the support of Swedish defence technology sold and then used abroad. The almost ‘omnipresent’ agency has sat in the heart of Stockholm since August 2012, led by the energetic LENA ERIXON, who here provides Georg Mader an overview as the wide scope of her tasks and illustrates Swedish defense culture, all in the context of today’s changing regional security-environment to which Sweden has been responding…

DIB: Let’s begin with highlighting the new regional security climate ignited by the unexpected crisis in Ukraine. While not directly affected, Sweden’s politicians and armed forces – contrary to other neutrals who are much closer to the area of conflict – are now adapting to this with increased defence funding and through prioritising certain acquisitions. This significantly influences the work of FMV, right? ERIXON: Oh yes, it does. There have of course been changes. What happened around Ukraine and Russia affects us all in some way. But not only are the recent events creating a new security situation, this change has also been visible before the crisis. For most of us in Sweden it was clear that after the expenses of the Cold War, we came to something of a period of ‘normalisation’ in relations with Russia. The Eastern part of Europe became more integrated, becoming members of the EU, and so on. In Sweden there was also the discussion – and the pressure – to adapt to these changes towards peace, increased stability and ‘normalisation’. As a result, the expenses for defence were

constantly reduced, and by quite a lot. At the same time, the former strict orientation towards neutrality became a non-aligned status and was subsequently supplemented by a declaration of solidarity. This was, or is, an expression of a hope that where we would step up for other countries, other countries – especially those around us – would also step up for us. Quite recently, what we have said in the defense commission is that we want to develop our relationship with NATO. These days, the government made the decision to apply to be a NATO host nation and we will be a part of the NATO ResponseForce, together with Finland with which we are working very closely. Both of us will exercise with NATO in-country. All this of course needs to get parliamentary approval and this is an election year. But the government will publically suggest these steps to the Ryksdag (Parliament). Of course, relations between NATO, Sweden and Finland are important, if you just look at the map of the North and the Baltic Sea. For the EU, we are the ones [geographically] closest to Russia. Unsurprisingly, we are very closely working on some

projects with the European Defence Agency (EDA). And all these developments are affecting our working-orientation here at FMV and across the other governmental and military bodies.

DIB: So how have these substantial developments been mirrored in Swedish defence spending? ERIXON: It’s made quite a difference. In the days of the Cold War, we were almost fully selfreliant in armament, spending almost 3 percent of GDP. The Swedish defence budget for this year was about 47 billion kronor (SEK), which equates to around 1.2 percent of GDP. But last April it was concluded and announced – citing the crisis in Ukraine and the ‘unsettling’ development in Russia – to increase again, this time by about 10 percent. According to the government, annual defence spending over the next 10 years should rise gradually until 2024, where the annual defence budget would be around SEK 5.5 bn. (€604m), more than in previous estimates.

Defence Industry Bulletin :: 24

The Briefing Room almost any need. Thus, pretty much all the materiel the Swedish Forces used over the Cold War period was produced in Sweden. That also is the historical reason why today, in this small nation – as in our population of nine and half million, not our territory – there are Swedish fighter planes and Swedish submarines. There is still such a strong defence industry with the likes of Saab, former BOFORS [now under BAE], Hägglunds and the Saab-Kockums yard. Those and many other companies are also able to successfully compete on the world market as well… Sweden’s Gotland-class submarine at Karlskrona

DIB: Whenever anyone meets Swedish military or reads about Swedish defence, FMV is mentioned in some context. The 44-year old Austrian Saab-105 fleet was supported by your agency. In the ‘Gotland’ submarine there are these green FMV manuals. You were on the forefront of the recent issue around KOCKUMS/TKMS. You will ‘own’ export Gripens before delivery. How did the ‘octopus’ that is FMV become so ubiquitous? ERIXON: (laughing): I didn’t see it that way! But I can explain it – although I do have to go far into the past. After the disaster with the (17th Century warship) ‘Vasa’ with all the lives and valuables lost when it sank (in 1628), it was decided that the King should not select foreign engineers, but that there should be a cadre of own specialists who would concentrate their knowledge and expertise around arms and armament, as well as work on the development and training [in skills to generate those products]. The idea was to have a highly-skilled competence within the armed forces when it comes to defence materiel. The politicians – in the early days the King and later the parliamentarians and the ministers – accepted that they are not automatically the best people to handle these issues.

25 :: Defence Industry Bulletin

DIB: So your directorate has been part of the armed forces since the 17th century? ERIXON: It was in a way, until 1968 when we were subordinated under the Swedish Forces’ HQ. Then FMV became an ‘independent’ agency, but within the MOD; which is logical as our ‘platform’ of work is the military’s armament and other defense materiel needs. Of importance is the ‘Swedish model’ of working very close with the public authority, the R&D agency (FOI) and the Armed Forces. And of course the close and good relations, on a daily basis, with the substantial Swedish armament industry…

DIB: With the latter being quite remarkable for such a ‘small’ country… ERIXON: It is. If you look into the history, you know that after WWII Sweden decided to be independent in defence manufacturing. Back then, we found ourselves in a situation right beside the conflict but not really prepared for what that meant. Equipment was quickly acquired from a dozen countries, of which almost all were war-fighting participants at the time. So Sweden decided to become as self-sufficient as possible, to build strong armed forces with its own industry for

Sweden decided to become as self-sufficient as possible, to build strong armed forces with its own industry for almost any need DIB: With the latter being quite remarkable for such a ‘small’ country… ERIXON: Some core capabilities are – and will also in the future – remain in the interests of national security, such as to retain the technological basis for modern fighter aircraft or, in the case of the underwater systems, including the submarines, this is for the moment a nationally launched or renationalised programme. But both will have to take in their foreign suppliers and partners, of course. In this aspect you are right – the costs are substantial today and we can less afford to develop and build everything alone when looking to

The Briefing Room meet the needs of the armed forces in every area. Since around the mid-1990s, partners are increasingly ‘welcome’ to share their costs and our industry is exporting defence goods on a (recently) rising scale. The sector is now much more open to competition, in line with what is happening in Europe today. In fact the Swedish defence industry would never survive without exports. These are however covered and handled by our own governmental agency under the MOD: the FXM, led by Ulf Hammarström.

which by the way – after a shift in defence policy some years ago – are now professional forces without conscripts. They now participate in more and more missions abroad. This has influenced their training, their materiel needs, and many other things. Now every single platform or item – above a certain value or for logistics – that they acquire is processed by us. Here is your ‘octopus’ again [laughing]. But those altered demands also mean that we ourselves need to adapt, to be more flexible, to provide the latest technology, to be interoperable with other nations…

DIB: Which was not the case before…

Saab and FMV signing an agreement to develop and modify 60 JAS 39 Gripen E for the Swedish Armed Forces – the largest industrial agreement in Swedish history

DIB: How are relations handled logically between the Swedish Forces, the government and parliament, and with you in between? In the end, it’s the politicians buying the equipment… ERIXON: Yes, after we are all through with providing our expertise, the government – after the parliamentary process – takes a decision to acquire this or that plane, ship, truck, pump – whatever. The relations between the armed forces, the government and parliament are of course that the former needs the decision to be made by the latter, in order to meet requirements. But when they [the armed forces] have got this decision, then it is up to them to give an order to us at FMV to start an acquisition process, to issue RFIs and RFPs, to do contract-negotiations, and so on. The process has changed over time. Previously, there was more direct procurement by the forces,

ERIXON: Not at all. Much of the technology was developed to be used only in Sweden, like the C2or earlier datalink-systems. Today everybody uses Link-16. Or the first series of ‘Gripen’ [JAS-39A & -B] – these aircraft were purely tailored to be used only by the Flygvapnet [Swedish Air Force], but now in the world of international missions, our equipment needs to communicate with others. What also is a whole new approach is our relationship with the armed forces. More and more, the life-cycle-perspective comes into consideration.

DIB: Is there a separation between divisions or departments within FMV if the materiel is acquired through Swedish production or brought in from abroad? I believe there were recent changes in your structure… ERIXON: Firstly, no, there are no dedicated people or staff just working on Swedish products or on foreign materiel. These are the same people – they are my experts for everything! Often they are engaged in parallel processes and sometimes some of them are in negotiation-teams abroad – as some are now in Brazil – or are shaping contract details here. They come from different departments,

of course. But they’re not tailored to where the materiel is coming from. Secondly, yes, from January 2013 on, there was a transfer of personnel from the Armed Forces to FMV. This was necessary as we are now – as said – also responsible for all those life-cycle perspectives, including backup logistics, workshops, services and storages. So we also have to care for the fate of technical equipment over its lifespan, to secure its function with spare parts, and everything else, as well as aspects of modernisation and upgrades. The Forces’ so-called ‘Technical Office’ is thus now part of FMV. This means that we have increased our staff from 1,500 to 3,400.

DIB: A number likely to increase further, I assume, when Sweden will again construct new submarines. Could you please give us an overview as to what the recent issues were behind the rift with the German TKMS-run Swedish branch of the former KOCKUMS-yard because of these submarines? FMV played a leading part in that, correct? ERIXON: Yes, our agency did play an important part in this episode. I will explain, as this is important and of interest, and not only in Sweden. Because of the special conditions in the Baltic Sea, our country remains committed to the maintenance of a national capability for the design, development, build, operation and support of conventional submarines and other underwatersystems. The submarine is one of the most important tools in our Swedish military arsenal. Although there has been a shipbuilding capability through the KOCKUMS yard for centuries, it was given up in the 1990s mainly because they could not economically and technically cope with the shipbuilding standards on the civilian side. They retained the military one, for things like corvettes. In 1999, the whole yard was sold to German HDW [Howaldtswerke-Deutsche

Defence Industry Bulletin :: 26

The Briefing Room Werft], which in turn was acquired by Thyssen-Krupp in 2003/4. So what was KOCKUMS became a separate Swedish branch next to their own marine-systems division [TKMS]. However, in building submarines, both branches were in competition; the German one and the Swedish one, based on their different propulsion technologies [German fuel-cell versus Swedish ‘Sterling’-engine]. When it was decided in 2010 that there should be new Swedish submarines, there was an agreement with them that the IP [Intellectual Property] on that inherited Swedish technology should remain in Swedish hands, and therefore in FMV hands.

DIB: And also an agreement for possible exports, right? Although I understand the German side did not support this… ERIXON: That’s about right. But by then it was still our intention to find a solution to work together. However, it was not possible. No conclusion was acceptable from our side. Sweden got very limited support by the German owners to share the costs in this project. It was one of the reasons that we at FMV lost confidence and did not want to move forward with this kind of ‘cooperation’ together with TKMS on what was then called A26 and which was subsequently terminated. The main issue was their previous decision to downsize export operations and restrict their Swedish-branch from their freedom to independently bid on major ongoing submarine construction projects, such as in Singapore, Norway or Australia. The current six Australian boats [Collins-class] are KOCKUMS designed, by the way. They promoted their own AIP-concept, but we did not like a ‘mix’ of both technologies. We wanted to keep it divided, with Stirling engines, signatures, et cetera. So we could say that all this was wrong, but in the end they were the owners. That said, their restriction basically removed

27 :: Defence Industry Bulletin

our ability to pursue our national key-interest and to internationally cooperate on submarines. We could not afford to shoulder these costs alone. We do not want to become a dedicated exporter of submarines, but we need to be able to share the burden when it comes to parts of the boats, their sub-systems, their future life-extensions, their upgrades, and so on. We need real partners for this. But under this regime, with their downsizing of the Swedish branch, it prevented us from maintaining and developing Swedish national security interests in the underwater arena, as there were no prerequisites for Sweden to share the costs. The skilled staff and workers at the site did not see a future. We were losing them to employers like the Norwegian offshore-industry. So we were afraid to lose this whole capability, including the human resource. It was a very unsatisfying situation and in the end, one can say that the sale in 1999 was a mistake…

DIB: So, at some point during this unsatisfying process, someone must have had the idea to ask Saab if they could also build submarines? ERIXON (laughing): Yes, the ‘someone’ was me! I asked Saab to go into submarines. We needed a Swedish entity to consider and manage an orderly takeover, to see if they could form the basis of our future. They have been involved in the Australian boats, but were never responsible for the whole design, the pressure hull. That’s new for them. Therefore in late February, FMV ordered a study by Saab, investigatingStudien ska undersöka möjligheterna för en konsoliderad försörjningsstrategi för undervattensområdet och nästa generations ubåt, både när det gäller design och produktion. the feasibility of a consolidated security strategy for the underwater sector and the next-generation submarine, both in terms of design and production and long-term supply solution. Based on that

study, Saab has meanwhile received contracts worth about SEK 460m [€50m] to generate and finalize the construction and production plans for this NGS, or ‘Next Generation Submarine’, as we now call it, and for the mid-life upgrade of the older ‘Gotland’-class boats as well. They also started to recruit former TKMS-KOCKUMS engineers and shipworkers – over 140 in one month. By April, TKMS has lost almost all human capability to proceed and decided that they finally want to sell KOCKUMS. Then a ‘letter of intent’, regarding the establishment of a longtime arrangement or framework to sustain the Swedish forces’ underwater capability from 2015 through to the mid-2020s, was signed by FMV and SAAB on June 9. Upon receiving the necessary political approvals, it covers potential orders valued at SEK 11bn [€1.2bn]. By July 22, the sale of their facilities in Malmö, Karlskrona and Muskö to Saab was completed, for a purchase price of SEK 34m [€37m]. These steps – after my ‘idea’, as you’ve called it – might indeed see Saab becoming a full-service provider of submarines for Sweden – and maybe later for others countries…

DIB: Were there not searches or a ‘raid’ of TKMS-premises by FMV in early April, under the support of the military police? I recall hearing of employees locking the gates and refusing to release confiscated material. Rather unusual for friendly nations… ERIXON: It sounded more dramatic than it was. There was no violence involved. But it is a fact that we had some hardware material there; Swedish intellectual property. We were required to protect our IP. I also want to emphasise that we have no conflict with Germany, just with this company, TKMS. You are however right – it looks tough for us Swedes. But as explained, it was a key issue for us.

The Briefing Room DIB: Weren’t there also some obligations included, involving the government having to care for the environmental cleaning of the former KOCKUMS shipyard at Karlskrona? Or even to assume ownership of the facility? When I was there with the 1st Flotilla a few days ago, there were fresh Saab signs and flags at the entrance. ERIXON: The latter is correct, Saab took over those buildings only days before you were there. There is a possibility that the Swedish government is required to take ownership to lease the facility back to Saab, while at the same time assuming liability for that necessary environmental remediation in the yard. But this is not decided yet.

DIB: To round things up, the coming A26 or NGS will be built by Saab at the re-nationalized yard at Karlskrona. What timeframes are being targeted? The 1st U-Boat Flottila at Karlskrona said to me that they hope the Gotland-class will be modernised by the time the first A26 comes in, early in the next decade. Is this how FMV and Saab are planning to time things? ERIXON: Yes, that is the way it shall happen. Regarding the timeframes in the signed framework-agreement for around SEK 11bn, Saab is ordered to finalise the planning. In parallel, and also included in the framework, the upgrade of the Gotland-class will start in late

2015. The construction of A26 or NGS should then be launched in early 2017 and we hope that the Gotland modernisation and the first operational NGS will coincide in 2023. We will also do a life-extension on the older Södermanland-class, because we need to have two – or even better, three – operational submarines in the Baltic at any time.

DIB: Let’s talk about the future of Gripen, your other next critical ‘programme of national interest’. It also has some exportpotential, such as to Brazil, after the Switzerland deal fell through. There will be 60 new Gripen-Es for Sweden’s Flyvapnet, right? ERIXON: The Defence Commission of the Riksdag has a proposal for 10 more, but they decided they indeed have need for the 60. A major train of thought now is that we share the costs with an international partner, or several partners. Since Switzerland fell off – although they will need to do something about their fighter programme in the next years anyway – the main focus is on Brazil. Negotiations are going quite well and we expect to have the contract on their 36 signed by the end of 2014. Our FMV people are involved in the background in the sense that while it is being overseen by FXM [the Swedish defence-export agency], it is us who are negotiating with the Swedish manufacturer, with Saab. That is because it is us who always acquire

We will also do a life-extension on the older Södermanlandclass, because we need to have two – or even better, three – operational submarines in the Baltic at any time. those jets, even for our foreign customers. There is a Gripenproject body within FMV.

DIB: When I was in Switzerland in 2013, it was always being said that there would only be a single-seat Gripen-E. No F two-seater. Not even for Sweden. Is it true that there are no twin-seaters at all in the distant future? Is that the current status? ERIXON: Yes, that is the current status for Sweden and it would have to also be the case for Switzerland. With advanced simulation for the tactical systems and by using the Gripen-D for conversion up until 2025, we consider a ‘new’ two-seater as not necessary. But that does not mean that there will not be one. Brazil definitely wants them and with its industry will even participate in its creation. Of course, FMV will still support the -C and -D-versions for our export customers. The Czech Republic has extended their lease, there is Thailand, Hungary, and others. There is also quite an interest in them on the market,

FMV and the Swedish Armed Forces are now working under a new model of cooperation

Defence Industry Bulletin :: 28

The Briefing Room such as in neighboring Slovakia. You know, the Gripen is high-end technology and affordable. Another argument for it, more and more, is in its life-cycle-costs. It’s much cheaper to operate and maintain than the other types out there.

DIB: The 60 planned are to form the spearhead of the ‘Flygvapnet’. So these are undisputed by the Swedish politicians and national media? ERIXON: Well of course the politicians hope that there will be an agreement with Brazil to share the costs, but even beyond that – for Sweden alone – the Gripen programme will go on. In the current and changing security environment, particularly around our region, we need those new fighters and we need this industrial core-capability. I think there is common sense in that.

DIB: As you have said, you at FMV ‘acquire’ the jets. Are you able to tell if those 60 will be truly new-built? I ask this as the past C-airframes for Hungary turned out to be refurbished A-cells. Is this approach still being undertaken today for the Flygvapnet? ERIXON: Yes, you‘re right. For the coming 60 or 70 E-versions, there will be some parts re-used or refurbished. But the vast majority of the new plane will be newbuilt. In the beginning, it was even planned to use more of the C/D parts in the E-version, but with the other fuselage and the gear somewhere else, most of it will now be brand new. It will be based on trusted technology, but a whole other step further.

are quite impressed by the fact that Sweden will be the first one taking this into operational use. We are also continuing with our artillery output. The ‘Archer’ programme suffered some problems when the Norwegians pulled out, but we will continue with it. Then there is the renewal of mid-range groundbased air-defence. However, this will not be undertaken alone; it will be acquired from abroad in collaboration with the Swedish industry. Then there are more modern command and control systems being developed to equip the ground forces.

Visby class corvette K32 HMS Helsingborg moored in Stockholm.

DIB: We have spoken a lot about your role in the exports of Swedishmade equipment. But to the contrary, if Sweden buys some equipment – like American Black Hawk helicopters, for example – then doesn‘t FMV also have a decisive role to play?

DIB: What other key-technologies do FMV have an eye on?

ERIXON: Yes, of course. RFIs and RFPs are going out from this building and all negotiations are happening here. We are responsible for all acquisitions. We have people going to Farnborough, Le Bourget and the Dubai Airshow to look into the markets to know what is going on and what is being developed, and by whom. This is not to be confused with what, say, Russia is developing a decade from now or what might be an emerging threat to us. This is more done by FOI and by the forces’ intelligence-service.

ERIXON: Well, the new Gripen will be nothing without proper armament. Of major importance therefore is the METEOR BVRmissile. Other partners, like the UK,

DIB: FMV also takes part in a number pf multi-national development projects, such as in the nEURON UCAV. I’m assuming the Swedish flag in its organigram

29 :: Defence Industry Bulletin

represents FMV. Are the Swedish forces pressing for a high-end unmanned system in this class? To replace or maybe even to supplement its manned systems? ERIXON: Yes, this participation in the nEURON-project, which is a research and validation programme, also means the involvement of some of my staff. If you look at the long-term defence planning of the Swedish forces, this is definitely part of the future…again – in the long term. I also do not think UAVs will fully replace manned platforms but will become an increasingly invaluable aspect of support over the whole portfolio of armament systems. We have seen this in Afghanistan, to search and control an area very effectively, and at a lower cost. However, this UAV subject has become a little sensitive in the Swedish political debate because of how the U.S. has used them. We are following the developments of the nEURON without a decision yet as to its [utility]. But we are actively engaged, within the EDA and by Saab, in the development of a collision-warning and senseand-avoid system for UAVs, which is what they have the most prominent need in seeing to maturity as these aircraft will some day be flying in civil airspace. It is called the MIDCAS or ‘MIDair Collision Avoidance System’. We are following these developments very closely because the Armed Forces will definitely need this technology. We will also need it for the underwater arena, since we are a maritime nation. But how we will use all this in the context of upcoming unmanned potential, that’s another story...

DIB: Thank for your extensive time, Mme. Erixon. All the best for your projects. ERIXON: Thanks for your professional interest. See you again in Sweden!

More Information

Editors: Editorial contact: Correspondents: Chief Designer: Marketing Manager: Advertising Managers: Advertising contact: Subscriptions: Website:

Richard de Silva Andrew Elwell enquiry@defenceiq.com Oliver Austin Victor M. S. Barreira Angus Batey Joseph Carpenter Iñigo Guevara Georg Mader Eugenio Po Thomas Withington Atul Chandra Beau Merchant Anisa Choudhary Herve Bavazzano Cem Tuna enquiry@defenceiq.com +44 (0) 20 7 368 9357 enquiry@defenceiq.com www.defenceindustrybulletin.com

IQPC, Floor 1, 129 Wilton Road, London, SW1V 1JX

Digital copies of Defence Industry Bulletin can be obtained each quarter by registering for Premium Membership via the interactive shop page at www.defenceiq.com. Defence IQ Premium Membership offers a number of perks, including an automatic annual subscription to Defence Industry Bulletin, all archived editions of the e-magazine, five free presentation a year from the Defence IQ B2B Shop, and the benefit of only ever paying the first Early Bird rate to attend a Defence IQ conference. The current rate is £350 p.a. Terms and conditions apply. Defence IQ reserves the right to change the rate and associated offers at any time. We are unable to guarantee the bonafides of any of our advertisers. Readers are strongly recommended to take their

own precautions before parting with any information or item of value, including, but not limited to, money, manuscripts, photographs or personal information in response to any advertisements within this publication. The entire contents of Defence Industry Bulletin is a copyright of Defence IQ, a subsidiary of IQPC, and cannot be reproduced in any form without permission. The Editors are happy to receive original contributions to Defence Industry Bulletin. Please note that all material sent to the Editors is forwarded at the contributor’s own risk. While every care is taken with material, the publishers cannot be held responsible for any loss or damage incurred. All material rates available on request.

Submitted material (especially illustrations) must be provided in digital format and must be provided with the contributor’s name and contact details, including email address and telephone number. All rights to submitted material must be owned by the individual submitting. All items submitted for publication are subject to our terms and conditions, and may be amended to meet our editorial standards. For a full list of editorial guidelines, please contact the editors at the email address listed. Defence IQ and IQPC accept no responsibility for the continued accuracy or use of the contents of Defence Industry Bulletin. All information is subject to change.

Defence Industry Bulletin :: 30

Formally Supported by the Government of the Bahamas

24-26 March 2015 Bahamas

The Caribbean Basin Coastal Surveillance and Maritime Security Summit for 2015

BUILDING AND SUSTAINING CAPACITY TO COUNTER TRANSNATIONAL ORGANISED CRIME

Major-General Antony Bertram Anderson, Chief of Defence Staff, Jamaican Defence Force

Francis Forbes, Executive Director, CARICOM - IMPACS

Commodore Roderick Bowe, Commander, Royal Bahamas Defense Force

Ambassador Adam Blackwell, Secretary of Multidimensional Security, Organization of American States

Grantly Watson, Coordinator, The Regional Security System

SECURITY AND DEFENCE LEADERS FROM ACROSS ThE CARIBBEAN MEET AT ThE REGION’S MOST PRESTIGIOUS AND hIGh PROFILE SECURITY SUMMIT TO DISCUSS WITh DIPLOMATIC AND FOREIGN AFFAIRS PROFESSIONALS ThE METhODS, POLICIES AND TEChNOLOGIES REqUIRED TO COUNTER ThE ThREAT OF TRANSNATIONAL ORGANISED CRIME DELEGATES WILL: Build personal relationships throughout the region that will prove invaluable in the fight against transnational organised crime Develop policies and strategies aimed at developing security capacity and efficiency Help to integrate security systems in the region and sub-regions Deepen their understanding of the unique military and security environments of Caribbean Nations Debate the benefits and challenges of regional military/law enforcement information and intelligence sharing

LAW-ENFORCEMENT FOCUS MORNING 24th March 2015 Join us for a morning of detailed discussions on the specific challenges facing law enforcement leaders across the caribbean basin region.

Develop a clear picture of international capacity building initiatives active in the region

“A great opportunity for stakeholders in the area of maritime security to exchange ideas and share best practice.” Commander Shurland, Deputy Chief of Staff, Barbados Defence Force

www.cabsecevent.com

31 :: Defence Industry Bulletin

+44 (0)20 7368 9737

enquire@defenceiq.com