Defence Industry Bulletin - July 2014 (#2)

Insider knowledge for the discerning defence and security professional

Issue #2, July 2014

READY, JET, GO! Indian market now open to foreign investment

INTERVIEW

Jankel Chairman reveals the secrets to success

Colombian Contracts

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Defence industry plans 2015-2018 :: Defence Industry Bulletin

Eurosatory 2014

On site at 2014’s 1 biggest defence show

Austrian Budget Crisis

Air Chief lambasts equipment gaps

Welcome 1 Broader Picture 2 Land 4 Sea 11 Air 15

The Briefing Room 20 EUROSATORY 26 DVD 29 Industry Statistics 30

Welcome to Defence Industry Bulletin!

JGSDF personnel may soon be in action overseas - just as the Japanese defence industry prepares to go global.

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t the height of exhibition

season, with Eurosatory (Paris) and DVD (UK) behind us and the Farnborough Air Show (UK) approaching in mid-July, it’s easy to focus on your own commercial interests and take your eye off the range of other developments taking place across the global market.

Issue 2 of Defence Industry Bulletin is here to fill you in on what you may be missing.

This quarter, we present our key findings from Eurosatory and offer insight into the UK’s latest armoured vehicle programme updates, as showcased in Milbrook.

We have more about Turkey’s major programmes, including the main battle tank Altay project and the forthcoming Fast Attack Craft.

Meanwhile, we cast an eye over new major market opportunities in Belgium, the US, India and Japan – the latter two having recently undertaken new legislation to open up to the foreign defence market. You can also read our Cover photo credit: Matt Morgan Photo above: Army.mil

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comprehensive overview of the Colombian defence industry as it plans fresh modernisation contracts through to 2018.

In The Briefing Room, we’ve got two exclusive interviews; one with a leading industry figurehead and another with a high-ranking military flag officer.

Andrew Jankel, chairman of UKbased armoured vehicle specialist Jankel, talks to DIB about how the firm is surviving in the current climate and what he thinks the future holds for armoured vehicle innovations. Brigadier General Karl Gruber, Chief of the Air Staff of the Austrian Armed Forces, lambasts the decision to restrict Austria’s defence budget despite an urgent need to modernise in a candid exclusive.

Of course, all of this is taking place against the backdrop of a dangerous extremist uprising in Iraq and the sustained standoff between Ukraine and Russia.

In a fast-moving world with a

constantly changing geopolitical landscape, Defence Industry Bulletin aims to keep you up-todate with the news you need to know.

Andrew Elwell and Richard de Silva

The Broader Picture Colombian defence industry plans for 2015-2018 Iñigo Guevara

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olombia’s state-run

Defence industrial Group – Grupo Social y Empresarial de la Defensa (GSED) – is undertaking an evaluation of their 2011-2014 strategic development programme, and planning its next quadrennial development programme for 2015-2018. GSED is composed of 19 companies, the most prominent of which are the COTECMAR shipyards, CIAC aerospace industry, Indumil armory and the most recent company, the CODALTEC high technology corporation.

CODALTEC began operations in 2012 and has initially focused on the development of fullmotion simulators. As of June 2014 CODALTEC has delivered three types of simulators to the Colombian armed forces: SIMART, a UAV training simulator based on the Boeing Scan Eagle; MARKAB, a 4x4 Textron M1117 Guardian armoured security vehicle-based simulator; and SIMAER, a Cessna Grand Caravan light transport aircraft-based simulator. For the 2015-2018 period, CODALTEC plans to become a leader in simulator development partnering with local and international private companies. A $26 million international tender has launched to establish a multi-tier simulator centre for the Colombian armed forces through an innovative Public–Private-Partnership (PPP).

During 2015-2018 CODALTEC will also concentrate on a new programme to develop sensor technologies with dual civilian and military applications for which international cooperation with Spanish and South Korean companies is underway.

During the 2011-2014 period, COTECMAR shipyards have experienced one of the largest expansions to date. COTECMAR laid down the second BDA amphibious

landing vessel, which will join its sister, the 625-ton ARC Golfo de Tribuga which was delivered in May 2014. COTECMAR also managed the export of four of its LPR-40 river patrol boats to Brazil. Construction of the initial three CPV-46 class coastal patrol vessels is underway at STX Offshore & Shipbuilding in South Korea, with deliveries scheduled during 2014. For the 2015-2018 period, COTECMAR will begin to build the fourth CPV-46 in Cartagena, with plans for up to fourteen CPV-46’s to join the Colombian Navy. Each CPV-46 will be armed with a 25 mm gun and 2D surveillance radar. In 2014 COTECMAR’s Cartagena shipyard finished a major upgrade with assistance from MTU, Thales and DCNS of its Almirante Padillaclass light frigates, and laid down the third of its Fassmer-designed OPV-80 ocean patrol vessels. For 2015-2018, COTECMAR will further develop its ship building capability with an aim to launch construction of a new class of frigates from 2025.

Under the 2011-2014 development plan CIAC’s three main goals was to consolidate its level III maintenance capabilities, build and upgrade aircraft, and develop its own UAV project.

As of June 2014, the CIAC has delivered 19 out of the 25 Lancair Legacy FG primary trainers it has on order under project T-90 Calima. It has also re-delivered the first modernised version of the EMB-312 Tucano, upgraded with new avionics and landing gear.

CIAC’s certification by EMBRAER to upgrade Tucanos, was part of Colombia’s offset agreement for the 2006 purchase of the EMB314 Super Tucano fleet, and CIAC expects to offer its Tucano upgrade services internationally. CIAC was to have produced six IRIS tactical UAVs by 2014, but the project has

run into some development delays and CIAC is looking at partnering with foreign companies to enhance the project.

The Army-run Industrias Militares (Indumil) is the main producer of Galil assault rifles in the world, exporting them to Chile, Ecuador, Israel, Paraguay and Peru; in October 2013 Indumil added the 9mm Cordova pistol to its product line, and expects to market the Cordova to neighbouring countries.

The company expects to increase sales by 11% during 2014, a large part of which will be driven by a rise in exports. Indumil therefore joins its GSED partners in beginning to look beyond Colombia’s domestic market, and the 2015-2018 plan will centre on preparing these companies for a post 2018 focus on exports.

Colombia’s state-run Defence industrial group is planning its next quadrennial development programme for 2015-2018

Defence Industry Bulletin :: 2

The Broader Picture NATO approves new security package for Ukraine Richard de Silva

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ato has agreed upon a

new military support package for Ukraine in the wake of further violence within the beleaguered country. With Russian tanks having been spotted by satellite photos operating in the east of the country, considerations were being made in Washington over a response that is also likely to include tighter sanctions on Moscow and new equipment for Ukrainian security forces. In March, the US provided 300,000 Meals Ready to Eat (MREs), and further input may include soldier equipment, medical supplies, radios, bedding, IED disposal equipment, as well as training and other long-term supportive measures. As yet, lethal systems have not been endorsed but the possibility is not being entirely ruled out. Ukrainian military vehicles, helicopters and an army transport plane have been

lost since the beginning of the crisis, along with 10% of its defence industrial assets in Crimea, making acquisition an increasing priority for the armed forces.

With Russian troops seen to have gathered along the east Ukrainian border in mid-June in spite of a cease-fire. Anders Fogh Rasmussen, NATO’s secretary-general, said foreign ministers have agreed to the establishment of new “trust funds” that will offer to help Ukraine’s military in areas such as logistics, command and control and cyberdefense. President Obama also confirmed that if President Putin did not change course and assist in reducing violent unrest, sanctions against Russia will continue, potentially pushing the country closer to recession.

Meanwhile, the Ukrainian Defence Industry (Ukroboronprom) was represented at Eurosatory

Ukraine may be in crisis but its defence industry remains optimistic...

PHOTO: Richard de Silva

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2014 and is working hard to make up for the breakdown of ties with Russia – previously its chief export market – by scouting for new business in Europe and Asia.

It was primarily promoting its homemade armoured personnel carriers, special-purpose vehicles and high-accuracy weapons.

Ukrspetsexport highlighted its continued cooperation with more than 90 countries worldwide – which includes 49% in Asia, 23% in CIS and 19% in Africa – which it says is built on a strong priceto-quality ratio, ease of use and maintenance, and opportunities for future modernisation. Of the specific services being promoted, the state enterprise LVIV Armoured Tank Repair Plant was of note, given its pedigree in the repair, overhaul, upgrade and manufacture of parts for T-series MBTs.

Land Chile’s FAMAE to co-produce Galil Iñigo Guevara

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o-production of the IWI Galil

ACE for the Chilean Army will take place at the Army-run Fabricas y Maestranzas del Ejercito (FAMAE) from 2014, with initial deliveries likely to begin in 2015.

The 5.56 x 45mm Galil ACE was selected in early 2014 as the standard assault rifle of the Chilean Army following several years of delays of the Project Titanio, a joint Army and Marines project to

procure a common assault rifle.

Between 2007 and 2011 both the Heckler und Koch G-36 and the SIG Sauer SG-556 appeared to be the favourites, but no order was placed.

In 2011, the Marines left Project Titanio and launched their own project that led to the procurement of 1,800 FN Herstal SCAR L and H assault rifles in 2013. A total of 3,500 SCAR rifles are required by the Marines.

FAMAE currently produces the 5.56mm SG540-1 and SG543-1, and the 7.62mm SG542-1 assault rifles as well as the 9mm SAF family of sub machine guns for the Chilean Army. Procurement of the Galil ACE for the Army is likely to surpass 35,000 in the next few years and will see FAMAE producing a proportion of its key component locally.

Nexter Systems to provide through-life support for French VBCIs Victor M.S. Barreira

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y 1 August, French firm

Nexter Systems will commence its 10 year in-service support services (MSS or Marché de Soutien en Service) to VBCI (Véhicule Blindé de Combat d’Infanterie) wheeled armoured infantry combat vehicles of the French Army (Armée de Terre). The contract notified on 2 December 2013, was awarded by the SIMMT (Structure Intégrée du Maintien en condition opérationnelle des Matériels Terrestres), the French Ministry of Defence maintenance in operational condition department on 4 April 2014 with the aim to replace the initial contract of 2008.

The French military procurement agency (DGA or Direction Générale de l´Armement) purchased a total of 630 of the 8x8 vehicles, comprising 520 infantry fighting vehicles (VCI or Véhicule de Combat d´Infanterie) in two different variants, and 110 command post vehicles (VPC or Véhicule Poste de Commandement) with the aim to progressively replace AMX10P tracked armoured vehicles.

VCIs feature the company’s SIT V1 information system and Tarask protection turret armed with a 25mm 25M811 automatic cannon, while VPCs carry out FN Herstal ARROWS (Advanced Reconnaissance and Remotely

Operated Weapon System) remote weapon station armed with a 12.7mm heavy machine gun and Airbus Defence and Space SIR (Système d’Information Régimentaire) information system.

Renault Trucks Defense (RTD) is responsible for supplying VBCI’s powerpack including the Volvo D12D diesel engine with 550 hp and ZF Friedrichshafen 7HP902S automatic transmission. Delivery of command posts was complete in mid-2013 and delivery of last infantry fighting vehicle will be held in March 2015 said Nexter Systems to DIB. All the vehicles are being outfitted out with necessary battery chargers and associated devices to

support the operation of soldiers equipped with the dismounted kit FELIN (Fantassin à Équipements et Liaisons INtégrés) provided by Sagem. The first vehicle ready to integrate FELIN soldiers was delivered on 23 January 2013 and the integration programme is expected to complete by mid 2015.

Several vehicles will be outfitted out with GEN40V atmospheric water generator and WTU water treatment systems by Water-Gen of Israel in a contract awarded by the French Army to INEO Defense. By 2016, the French Army will induct some 95 VCIs with increased weight and outfitted out with improved suspension to allow adding enhanced protection.

France has purchased a total of 630 VBCI 8x8 armoured vehicles Photo: Victor M.S. Barreira

Defence Industry Bulletin :: 4

Land Indonesia set to receive CAESAR artillery system Victor M.S. Barreira

By October 2014

, the Indonesian Army (Tentara Nasional Indonesia Angkatan Darat or TNI-AD) is scheduled to receive an initial four CAESAR (Camion Équipé d’un Système d’Artillerie) truck-mounted self-propelled artillery systems of the total 37 units that were purchased from French Nexter Systems.

It is understood that the contract involves the supply of initial logistic support, training and the company’s BACARA (BAllistic CAlculator for ARtillery) lightweight ballistic computer.

CAESAR comprises a Renault Trucks Defense (RTD) Sherpa Medium 6x6 heavy tactical truck with protected cab, a 155mm 52-calibre gun with rate-of-fire of 6 rounds per minute and Sagem’s Sigma 30 inertial navigation unit.

The air transportable artillery system has a combat weight of 17

tons, length of 10 metres, width of 2.55 meters, height of 3.65 meters, maximum off-road speed of 50 km/h, and cruising range of 600 km. Along LU-series shells of Nexter Munitions, CAESAR is able to fire BONUS Mk II smart anti-tank ammunition by Nexter Munitions and BAE Systems Bofors.

CAESAR is currently in service with the armies of France and Thailand, and the Saudi Arabia National Guard (SANG). It is also being actively marketed in several other countries including Brazil, Colombia and Denmark.

Systems of SANG are mounted on 6x6 Mercedes-Benz Unimog U5000 chassis with body by Soframe of France. CAESAR is being offered together with Larsen & Toubro Limited (L&T) and Ashok Leyland Defence Systems (ALDS) for the Mounted Gun System (MGS) artillery programme of the Indian

CAESAR 155 mm self-propelled artillery system of the French Army. Photo: Victor M.S. Barreira

Army, mounted on a Super Stallion 6x6 chassis of Ashok Leyland. A cooperation agreement was firmed up in June 2014 with Brazilian Avibras for the development of a configuration mounted on Tatra Export T815-790R39 6x6 highmobility heavy duty chassis with protected body, which is used by ASTROS II Mk6 multiple launch rocket system (MLRS) of the Brazilian Army.

Afghanistan inducts last MSFVs, seeks more Victor M.S. Barreira

Textron Systems completed

the delivery of all the 634 MSFV (Mobile Strike Force Vehicle) 4x4 high-mobility armored vehicles that were purchased by Afghanistan through the US foreign military sales (FMS) programme.

Based on the company’s COMMANDO Select design, MSFV vehicles were supplied to the Afghan National Army (ANA) according different foreign military sales contracts placed by the U.S. Army Contracting Command (ACC) in three wheeled variants, including

Textron Systems completed the delivery of 634 MSFVs to Afghanistan. Photo: Textron Systems

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49 ambulances with a higher roof for greater transport capability, 274 troop carriers with objective gunner protection kit (OGPK), and 311 troop carriers with 40/50 protected manned enclosed turret outfitted out with 40mm automatic grenade launcher, 12.7 mm heavy machine, smoke dischargers and M36 day/ night gunner sight.

To follow equipping its quick reaction force (QRF) battalions (locally known as Kandaks) with a similar 4x4 armored platform, ANA has expressed interested in acquiring the mobile mortar carrier and direct fire variants of COMMANDO Select. The fire support configuration includes the Cockerill CSE90LP protected weapon system by CMI Defence of Belgium, which is armed with the 90mm Cockerill Mk3 low pressure gun.

MSFV is equipped with automatic fire suppression system for engine

compartment and manual system for crew compartment, central tire inflation system (CTIS), and climate control system, intercommunication system by Telephonics, radios by Datron World Communications and IBD Deisenroth Engineering MEXAS (Modular Expandable Armor System) enhanced survivability package to mine-resistant ambushprotected (MRAP) protection level, Cummins 6CTA8.3 diesel engine with 280 hp, and Allison Transmission MD3560 6+1-speed automatic transmission. The vehicle has a combat weight of 17.2 tons, length of 6.6 meters, top speed of 100 km/h and maximum range of 483 km.

The company also supplies the ANA with support equipment, spare parts, field service representatives, training and training aids.

Land Modular handguns to come to the battlefield Richard de Silva

Asoldier’s sidearm

is not an afterthought. Modern forces are now eager to boost the capacity of their handguns in order to make them more useful to multiple types of mission, increasing demand for the likes of lasers, sound suppressors and tactical lights. Taking this a step further, there is also heightened interest in enhanced ergonomics, full ambidextrous controls, and even interchangeable calibres. Like many other systems, the word ‘modularity’ is now imposing itself upon the soldier’s pistol.

Last year, the US Army released an RfI for options in preparation for its Modular Handgun Systems (MHS) programme, a planned replacement to the standard Beretta M9s. The decision to replace, rather than upgrade, has been contentious due to the costs involved, but the extent of improvement that the Army envisions exceeds upgrade potential. For instance, the service life of the MHS is projected to be 25,000 rounds, five times the

requirement of the M9 and almost 7,500 more than the current model’s average reliability. However, in September 2012, the Army signed a deal to buy 100,000 M9s through to 2017, meaning any transition to a new sidearm would not occur quickly.

As part of the update, the requirement has asked for “potential improvements in handgun performance in the areas of accuracy and dispersion out to 50 m, terminal performance, modularity, reliability and durability in all environments.” The Army closed the window for proposals in March 2013, with final RFP pencilled for July 2014. Companies that have publicly confirmed interest in the programme include Colt, FNH USA, Glock, Remington, Sig Sauer, Smith & Wesson and Beretta USA, with the latter stating that – if there is simply no hope of an M9 upgrade alternative programme – it would offer something “significantly different” to the M9 in the way of weight, corrosion-resistance,

reduced maintenance and other factors.

SIG Sauer has had its modular P250 polymer pistol on the market since 2007, offering interchangeable frames and calibres alongside ambidextrous slide releases and a Picatinny rail. The company has gone one better by introducing the striker-fired P320, which also allows for the trigger group and striker assembly to be removed, offering an any-calibre-in-one to users who may need the option, whether they are military personnel undertaking various tasks or private users legally restricted to owning a set number of handguns.

Handling the P320 at Eurosatory, this writer found less roll in the trigger than expected in spite of its heavier weight and was told by a representative that the popularity of the model at US training facilities is leading a precedent for future handguns in the SIG range. Expect it to be a contender for MHS if unit costs can match the competition.

The SIG P320 could be the US Army’s next-generation handgun Photo: SIG SAUER

Defence Industry Bulletin :: 6

Land First Excalibur S to give artillery chance to change mind Joseph Carpenter

Raytheon successfully

conducted the first of its livefire tests of the Excalibur S artillery shell in June. The dual-mode GPSand laser-guided shell was initially aimed with GPS target location and then terminally guided onto a different, offset target. BAE Systems Bofors provided the folding glide fin round in which the guidance system was integrated. The round is able to manoeuvre from the top of a ballistic arc and glide towards a selected target at a range of 25-35 miles.

The system is an enhanced version of the company’s Excalibur 1b, which was previously an upgrade of the popular original Excalibur projectile, renowned for increasing reliability and cutting costs. These GPS-guided 155mm howitzer shells are capable of achieving a radial miss distance of less than two metres from the intended target. So accurate

have the systems proved that the TTPs governing the artillery were changed, no longer demanding that

The original Excalibur round was well received during its roll out in Afghanistan Photo: Sgt. Henry Selzer

two rounds be used for one target.

Excalibur S provides a new and resilient laser spot tracker, which can immediately take over from GPS guidance when airborne.

Michelle Lohmeier, vice president of Land Combat product line at Raytheon Missile Systems, said: “The significance of this new capability cannot be understated.

A laser-guided variant of Excalibur gives the warfighter a precision weapon that accommodates target location errors, allows continued target attack when GPS is degraded or denied, and hit targets on the move at extended ranges.”

The US Navy has also released an RfI for guided long-range shells for its 127mm/5 inch guns aboard its destroyers and cruisers, to which Raytheon has responded by putting into development the Excalibur N5 (naval variant) and which will undergo live-fire testing by the end of 2014.

UK and France qualify CTAS 40 mm weapon system Victor M.S. Barreira

CTA International

(a Joint Venture company between BAE Systems and Nexter Systems) achieved in mid-June the qualification certification for the cased telescoped cannon and the armour piercing fin piercing discarding sabot-tracer (APFSDS-T) and target practice-tracer (TP-T) rounds of ammunition of its 40mm CTAS (Cased Telescoped Armament System) weapon system from both UK MOD’s Defence & Support (DE&S) procurement organisation and the French procurement agency DGA (Direction Générale de l’Armement), after final qualification trials were completed in December 2013. Qualification started in 2010 and has included a set of tests which included safety and functional trials in severe environments.

The CTAS system is to be delivered by the UK MOD as

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government furnished equipment (GFE) to the infantry fighting tracked vehicles configuration of General Dynamics UK Scout SV and to the modernised 380 Lockheed Martin UK WCSP (Warrior Capability Sustainment Programme) infantry fighting tracked vehicles intended for the British Army. Both vehicles’ turrets are being developed by Lockheed Martin UK. It will also arm the protected manned turret of the reconnaissance vehicle to be retained by DGA for the French Army’s 248 EBRC (Engin Blindé de Reconnaissance et de Combat) armoured reconnaissance and combat vehicle. EBRC will replace AMX-10RCR and ERC-90 Sagaie combat cars.

Work will continue over the next two years on qualifying the general purpose round point detonating

tracer (GPR-PD-T), general purpose round airburst tracer (GPR-AB-T), as well as the target practice reduced range tracer (TP-RR-T) ammunitions.

CTAS also arm the Thales Air Systems RAPIDFire self-propelled mobile multi-role air defence system.

CTAS has been qualified to fire APFSDS-T and TP-T ammunition. Photo: Victor M.S. Barreira

Land KMW unveils 155 mm artillery system on Boxer 8x8 Victor M.S. Barreira

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t Eurosatory, the German

firm Krauss-Maffei Wegmann (KMW) unveiled its AGM (Artillery Gun Module) remotely controlled turret armed with a 155 mm gun mounted on the GTK Boxer 8x8 multi-role armoured vehicle from ARTEC consortium (a joint venture of Rheinmetall MAN Military Vehicles and KMW).

Marketed as DONAR system, the AGM artillery system was earlier presented mounted into a tracked armoured chassis of General Dynamics European Land Systems-Santa Bárbara Sistemas (GDELS-SBS). GTK Boxer wheeled protected vehicle is being supplied

to the armies of Germany and the Netherlands in different configurations.

AGM use the same 155mm / 52 calibre ordnance used by KMW PzH 2000 self-propelled artillery system fielded by the armies Germany, Italy, the Netherlands and Greece and on order by Qatar.

The artillery turret has a loading capacity for 30 projectiles and 145 modular charges. Initial firing trials are scheduled to be conducted later in 2014 at Germany’s firing range of Meppen. The turret was seen equipped with muzzle velocity radar.

AGM 155 mm turrets system mounted on Boxer armoured vehicle.

Photo: Victor M.S. Barreira

Indonesia bolsters its land forces Victor M.S. Barreira

The mobile CONTROLMaster 200 radar and coordination system will considerably improve Indonesia’s air defence capability Photo: Thales

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s part of an ambitious modernisation programme, the Indonesian Army (Tentara Nasional Indonesia Angkatan Darat or TNI-AD) is bolstering its capability through the arrival of new advanced military hardware that will enhance the country’s protection.

Initial CAESAR (Camion Équipé d’un Système d’Artillerie) truckmounted self-propelled artillery systems of 37 units that were purchased from French Nexter Systems are scheduled to be inducted later this year. The 155mm 52-calibre artillery system is mounted on Sherpa Medium

6x6 high-mobility trucks from Renault Trucks Defense (RTD) with protected cab.

The service is receiving 103 KMW Leopard 2A4 main battle tanks from Rheinmetall Defence plus Leopard 1 main battle tanks for armoured recovery, engineering and bridge laying vehicles, as well as 42 KMW Marder 1A3 infantry fighting tracked vehicles formerly in service with the German Army. 42 Leopard 2A4s are being refurbished prior delivery and the remaining 61 will receive elements of Rheinmetall Defence’s MBT Revolution battle tank upgrade kit including ballistic and mine protection suite.

Thales will also supply Indonesia with ForceSHIELD mobile integrated air defence system that consists of a 8x8 truckmounted 20-feet container-based CONTROLMaster 200 tactical radar and weapon coordination systems (incorporating the company’s Ground Master 200 medium range 3D multibeam search radar and CONTROLView command and control module); RAPIDRanger remote controlled weapon systems mounted on URO Vehículos

Especiales VAMTAC 4x4 carriers and outfitted out with four ready-tofire Thales STARStreak short-range high velocity missiles and Thales SSH (Stabilised Sight Head) electrooptical fire control system; and lightweight multiple launchers for STARStreak missiles mounted on Land Rover Defender 110 XD 4x4 high-mobility carriers by Hobson Industries. CONTROLMaster 200 offers a range of up to 250 km, 360 degree coverage, tracking capacity of 200 air targets simultaneously and has embedded identification, friend or foe (IFF) capability, power generation and air conditioning.

ASTROS II Mk6 multiple launch rocket systems are being received from Brazilian company Avibras, and it is also understood that a number of AMX 13 light tanks are being locally upgraded by the Indonesian state-owned company PT. Pindad (Persero) with assistance of Israel Military Industries (IMI).

Defence Industry Bulletin :: 8

Land France looks to upgrade Leclerc MBTs Victor M.S. Barreira

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he French military

procurement agency DGA (Direction Générale de l´Armement) is expected to award Nexter Systems a contract to study the feasibility upgrade of French Army’s Leclerc main battle tanks (MBTs) later this year. As part of SCORPION (Système du COntact Renforcé par la Polyvalence et l’InfovalorisatiON) modernisation programme, 201 vehicles are scheduled to be modernised in line with the Military Programming Law 20142019.

Potential upgrades include the ability to fire new ammunition including tri-mode rounds,

installation of remote controlled weapon station armed with a 7.62mm light machine gun; new climate control system, electronic architecture, ballistic calculator; the company’s AZUR (Action en Zone Urbaine) ballistic protection suite; vehicular version of CONTACT (COmmunications Numériques TACtiques et de Théâtre) software defined radio (SDR) system being developed

by Thales Communications & Security; the army’s future digital information systems SICS (Système d’Information et de Combat de SCORPION); and to improve ergonomics and mine protection.

France originally received 406 main battle tanks, of which 54 are of an improved standard. They feature 120 mm CN120-26/52 smoothbore gun, coaxial 12.7 mm heavy machine gun, pintlemounted 7.62 mm light machine gun, meteorological sensor, GALIX smoke dischargers, Icone battle management system, fire control system, panoramic electro-optical sight, PR4G tactical communication radio, V8X diesel engine and ESM 500 transmission.

20 of the DCL (Dépanneur de Chars Leclerc) Leclerc-based armoured recovery vehicle were also received by France.

TITUS multi-purpose wheeled armoured vehicle here outfitted out with the company’s 20 mm ARX 20 remote controlled weapon station Photo: Victor M.S. Barreira

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Land Turkey moves forward with its MBT programme Victor M.S. Barreira

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he ALTAY main battle tank

(MBT) being developed by the Turkish armoured vehicle specialist Otokar (of Turkish industrial conglomerate Koç) for the Turkish Land Forces Command (TLFC) will be equipped with a 17Kw-28 Vdc auxiliary power unit (APU) by the local company Tepaş Elektrik ve Mekanik ev Cihazlari Sanayi ve Ticaret.

The APU measures 1437 x 704 x 472 mm and operates at -32ºC/+55ºC and at a maximum altitude of 3500 meters.

Otokar was contracted in March 2007 by Turkish military procurement organizstion SSM

(Savunma Sanayii Müstesarlıgı) to develop the country’s first locally developed main battle tank. It receives technical assistance from Hyundai Rotem of South Korea.

While the original contract is dubbed Phase 1 overseen design/ development, prototype production and qualification, SSM is expected to place a contract later this year for an initial batch of vehicles. First batch of serial productions vehicles is expected for 2016.

Four prototypes comprising two test rigs for mobility and firepower tests and four for system qualification tests and acceptance tests were so far produced. It is

intended to progressively replace M60, Leopard 1 and Leopard 2A4 vehicles of the TLFC. ALTAY is armed with L/55 120 mm smoothbore gun, anti-tank laser guided missile by Makina ve Kimya Endüstrisi Kurumu (MKEK), 7.62mm coaxial light machine gun, and remote controlled weapon station armed with machine gun.

Other local suppliers include Aselsan Elektronik Sanayi ve Ticaret that will supply the vehicle´s fire control, communications, panoramic sight and battle management systems. Roketsan will supply ALTAY’s ballistic protection system.

MBDA develops new anti-tank system for France and export Victor M.S. Barreira

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issile specialist MBDA

France is scheduled to deliver the first tranche of MMP (Missile Moyenne Portée) medium range anti-tank missile systems to the French Army by 2017.

After it awarded a risk reduction contract to MBDA France in 2011 to develop the missile system, the French military procurement arm (Direction Générale de l’Armement or DGA) ordered in December 2013 a total of 400 firing posts and 2850 missiles, as well as training and support services and simulators featuring 10 scenarios. Initial 175 firing posts and 450 missiles are scheduled to be inducted before 2019 with the aim to replace inservice MILAN series and FGM-148 Javelin systems. The missile system will be also available for export.

Several initial tests were already carried out including rail firings by the French DGA’s at its facilities in Bourges with the aim to validate the functioning of the lethality chain at maximum speed and to certify the missile’s efficacy against explosive reactive armour.

Development of the missile is expected to be complete by year

end and qualification firings are expected to run in 2015 and 2016.

The fire and forget man-in the loop missile weighting 15 kg and measuring 1.3 meters in length with tactical canister, 140 mm in diameter and having a range of 4 km and steel armour penetration of more than 1000 mm feature a dual mode seeker (TV + IR uncooled)

by Sagem, multi-purpose tandem warhead by Saab Bofors Dynamics Switzerland (SBDS), safety & aiming unit, inertial measurement unit based on MEMS (Micro-ElectroMechanical Systems) technology for inertial navigation, electronic processing unit, main motor and booster by Roxel, actuators and fiber optic data link for in-flight targeting and re-targeting. It was designed for top-attack and directattack modes and for mounted and dismounted combat for use by infantry forces and combat vehicles.

In the dismounted configuration, MMP is launched by a lightweight tripod mounted portable firing post weighting 11 kg that include day and night channels, laser rangefinder, GPS and magnetic

compass and battery. It can be fired in prone and seated positions.

MMP will arm together with the 40 mm CTAS (Cased Telescoped Armament System) weapon system of CTA International (Nexter Systems and BAE Systems) the protected turret of French Army’s future EBRC (Engin Blindé de Reconnaissance et de Combat) reconnaissance and combat armoured vehicle. It is also proposed as main armament for MBDA’s MPCV (Multi Purpose Combat Vehicle) remote controlled weapon station for vehicles in a four ready-to-fire missiles configuration.

MMP weapon is indented to progressively replace France’s current anti-tank missiles Photo: MBDA

Defence Industry Bulletin :: 10

Sea Turkey draws up RfP for Fast Attack Craft Oliver Austin

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urkish Naval Forces

Command is on the cusp of releasing of an RFP for its New Turkish National Fast Attack Craft programme, with final revisions being made to incorporate a complex array of requirements.

If a deal is confirmed by the end of 2015, Turkey plans to buy four vessels in the first instance to meet delivery by 2019, with the possibility of a further six orders in the longer term.

The RfI issued in July 2013

by Turkish Defence Industries Undersecretariat (SSM) detailed that a number of domestic companies were taking the lead in the development. Propulsion systems are being overseen by STM, Roketsan have the lead on armaments, while combat systems

are being spearheaded by Aslesan/ Havelsan.

The incoming next-generation FAC have so far been anticipated to be smaller than the existing Kiliç-class FAC vessels (under 60 m in length) and to boast a 76 mm Otobreda gun mount, four torpedoes and eight anti-ship missiles. The vessels will be able to hit a speed of between 42-60 kt for strike and run tactics, while possessing the capability to cruise for approximately 800 n miles at 28 kt. The designers are believed to have a number of hurdles ahead in attempting to fit a vessel of its limited size with the full intended suite of sophisticated systems, while remaining agile and powerful enough to attain the speeds required.

Most recently, STM showcased a concept model at the Doha International Maritime Defence exhibition & Conference (DIMDEX) held in March, with the craft also expected to carry a Rolling Airframe Missile (RAM) launcher, two additional naval guns, torpedo decoy systems, ESM/ECM systems, and a 3D surveillance radar.

Industry sources have indicated that the final contract could be worth $800m, given an estimated cost for each vessel being in the range of $70m-$80m. Local shipyards believed to be vying for the contract include Yonca-Onuk, RMK Marine, Dearsan and Ares. The Navy currently operates 25 assault craft in five different classes.

New developments illustrate rising demand for OPV-launched UAVs Edward Lundquist

S

hip manufacturers

worldwide have now submitted responses to the RfI for the U.S. Navy’s multi-billion dollar Small Surface Combat programme.

Defense Secretary Chuck Hagel put out the call in February for a vessel “comparable to a frigate that can operate in all regions under any conflict conditions”.

As part of the Navy’s 2012 Force Structure Assessment, 52 combatants are to enter service, 32 of which will consist of the two Littoral Combat Ship (LCS) variants already under construction, but which will cease production after those 32 hulls are completed – a response to analysts finding the LCS to be potentially lacking in protection against advanced adversaries. The total LCS/SSC fleet will account for one sixth of the Navy’s 300-ship arsenal.

While some of the proposals have been for modifications to the existing LCS variants to close the

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gaps, others have offered upgraded and matured designs already in the portfolio. Currently, five companies are playing to win, including the two existing shipbuilders on the LCS programme – Lockheed Martin, offering a frigate-sized variant of its Freedom-class LCS, and Austal offering an Independence-class LCS with permanently fixed weapon systems. General Dynamics is returning to the role of shipbuilder if the Navy plumps for its new design, which may be similar to its Offshore Patrol Cutter proposal for

The existing LCS vessels may prove the foundations for the incoming Small Surface Combatant Photo: NAVSEA

the US Coast Guard as Huntington Ingalls is offering an armed variant of its existing USCG National Security Cutter . Intriguingly, Raytheon has responded to the RfI not with a ship design but with a complement of sensor and weapon systems to connect the new vessels into an integrated system, including its Air and Missile Defense S-Band Radar (AMDR-S).

The first ten ships must be built solely with technology that is at least IOC level of maturity on the date of the release of the RFP. The primary missions of the SSC will include active/passive ASW, ASuW and AAW, and must meet a service life of at least 25 years. Early estimated costs are believed to be in the range of $750 m per ship. The concept for costeffectiveness hinges on the strategy to implement already proven technology. Production of SSC is scheduled to start as early as 2017, which should impact the selection.

Sea ‘Science of learning’ investment proving sound result for U.S. Navy Edward Lundquist

G

eneral Dynamics Canada

is installing an ECLIPSE adjunct processing system on board each of the Portuguese navy’s three Vasco da Gama-class frigates. The equipment provides the existing in-service AN/SQS-510 sonar systems with enhanced operational capability to detect torpedoes and submarines. GD Canada is also the original designer and manufacturer of the hull-mounted sonar system, which operates on all twelve Royal Canadian Navy HALIFAX-class patrol frigates and three IROQUOISclass destroyers, as well as on a number of Bulgarian Navy vessels.

The ECLIPSE system leverages data collected by the An/SQS510 and significantly improves

the ability to detect and characterise echoes and sounds transmitted through the water to determine location and physical characteristics of potential threats.

David Ibbetson, vice president at General Dynamics C4 Systems International, announced the partnership in April, citing the company’s 40-year history of providing and supporting underwater systems and components to navies around the world. Portugal has been modernising, including significant work on the national shipbuilding and communications industries.

Over the past 10 years, the Navy has aimed to replace than 80% of its ageing fleet with new acquisition

programmes for OPVs, a landing platform dock (LPD) ship, and other patrol vessels for fishery protection and law enforcement, but austerity measures have led to a number of cancellations.

The Navy however also suffered embarrassment in April when a hand-launched experimental UAV nose-dived into the water on its first attempt during a media demonstration. The second attempt was successful and the electrically-powered AR4 Light Ray Tekever showcased its surveillance system in realtime. At the 2012 Farnborough International Air Show, the same system ran into criticism for “breaking into three parts” after landing.

The Portuguese Navy’s Vasco da Gama-class frigates are set for a sonar upgrade Photo: Navy

Defence Industry Bulletin :: 12

Sea Fincantieri and Italian Navy working together for new multi-purpose PPA ships Eugenio Po

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incantieri shipyard and

the Italian Navy are working together for the design of a new concept of multi mission ship called PPA, Pattugliatore Polivalente d’Altura (Multi Purpose Offshore Patrol Vessel), a dual use vessel supported by Adm. Giuseppe De Giorgi, Chief of Navy Staff.

The PPAs will come in two variants, “Light” and “Full Combat”, sharing the same hull, with a similar general configuration and with identical propulsion and engines.

With an overall length of 135m, a maximum width of 16.5m and a displacement around 5,000 tons (real displacement wasn’t released due to the differences in configurations, which altered the value considerably), the PPA will be comparable to large OPVs and frigates. PPA will form the backbone of the fleet: the Italian Navy plans to buy 10-12 PPA for replacing the whole range of ships being phased out (frigates, corvettes and OPVs) at a lower cost. First financing, approved last December, started an initial programme for the first batch of 6 ships.

The “Light” version will be a large OPV, suitable for patrolling, anti-piracy, MIOs (Maritime Interdiction Operations), hydrographical research and civil support operations (disaster relief, humanitarian support), while the “Full Combat” will be fully equipped for war fighting. The initial concept foresaw an easy conversion from one configuration to another: it is not clear if that possibility is still maintained.

One of the most peculiar requirements is a top speed of at least 35 knots, a very high value for a vessel of “5,000 tons class displacement”. This comes from the idea that “speed is safety.” In Adm. De Giorgi’s mind, reaching disaster areas (or operational areas) as fast as possible is crucial.

To satisfy that demanding

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requirement, Fincantieri and Italian Navy designers are studying very fast keel and the combined use of waterjets (for faster speed) and propellers (for low and cruise speed) with the so called WAP (Waterjet And Propeller) system, which is similar to the South African MEKO 200 SAN frigates.

In addition, a new type CODLAG (COmbined Diesel eLectric And Gas) powerplant is under design, with electric motors for very low speed and loitering, diesel engines for up to 25 knots and gas turbines for top speed. The ship will have a range of 5,000 n miles at 15 kt and can attain an economical cruise speed of 25 kt. It has a crew of 170 but can accommodate up to 200 sailors.

Between the 2 variants the superstructures will be externally very similar, while the electronic configurations will diverge substantially. Most of the electronic and radar suite will be in the forward superstructure, but while the PPA “Light” will have an extremely basic system, the PPA “Full Combat” will accommodate a new integrated electronic suite, under design by a group of companies lead

by SELEX ES, combining C band and X band active phased array radars, Electronic Warfare system, advanced radio and communication systems.

In the middle of ship’s deck a large space could be devoted to different roles. On PPA “Light” this area will be applied to carry 20 ft standard container for civil use (to carry humanitarian aid) with cranes to load and unload. On PPA “Full Combat” to carry special mission shelters or 11/15 m RHIBs (Rigid Hull Inflatable Boats).

The “Light” variant will be armed only with a 127/64mm OTO Melara main gun (capable of firing very long range high precision Vulcano projectiles) and with 2 machine guns. The ship would be able to provide electricity and clean water to a community of 6,000 people: in

case of a natural disaster the ship could dock and supply water and electricity to a “small town”.

The “Full Combat” firepower is augmented by one 127/64 mm OTO Melara main gun (with Vulcano capability) and 2 machine guns. Antiaircraft and antimissile persecution is achieved with 16 cells Sylver A70 vertical launching system that is designed to fire MBDA Aster 15/30 missiles and is capable of launching MBDA Scalp Naval cruise missile for deep strike missions (Italian Navy clearly indicates that weapon as its ideal solution for deep strike).

For anti-ship roles PPA “Full Combat” will have 8 MBDA Teseo/ Otomat missiles while a couple of lightweight torpedo launcher will be installed midship for antisubmarine self defence. For soft kill self defence against anti-ship missiles there will be 2 chaff/flare launchers controlled by electronic warfare suite.

Both versions will have a big hangar for a single AgustaWestland AW-101 or 2 NH Industries NH-90 helicopters.

Astern, under the flight deck, the ship will have 2 modular areas, one for unmanned vehicles (UUV, UsuV, ROV and UAV) and one for fast release and recovery a 11 m RHIB. Together to the “classical” operational capability of a “frigate type” ship (AAW, AsuW and ASW), the “Full Combat” will have basic mine hunting capacity.

Italian Navy has asked for a very fast development and production programme, so Fincatineri is working for starting the sea trials of the first “Light” PPA (probably in an initial/simplified configuration) in 2016-2017. According to the programme, the first three PPAs will be “Light,” while the following three will be “Full Combat”. Unitary costs of the units haven’t been officially released but according to some rumours a “Full Combat” will cost around 500 millions euro and a “Light” 300 million euros.

Sea

HMS Queen Elizabeth official naming ceremony in Rosyth, UK. Photo: Royal Navy Crown Copyright

Royal Navy’s new aircraft carrier officially named HMS Queen Elizabeth Andrew Elwell

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he largest warship in

the Royal Navy’s history was officially named HMS Queen Elizabeth on July 4 in a champagne ceremony led by the monarch she was named after.

“Wherever the ship may serve, whatever tasks they may ask of her, let all those who serve in her know that on this day she was blessed,” said Her Majesty. “I name this ship Queen Elizabeth. May God bless her and all who sail in her.”

The aircraft carrier – one of two being built for the Navy at a cost of over £6 billion – will now leave the dry dock in Rosyth near Edinburgh and free up space for construction to continue on its sister ship, and the second of the QE class, HMS Prince of Wales.

The Queen Elizabeth carrier is 56 m tall and 280 m long with a range of 10,000 nautical miles. The Royal Navy said the carrier is equipped with a long-range 3D radar that is capable of tracking more than 1,000 targets at once or can spot a tennis ball travelling at 2,000 miles

per hour. It will be used for a range of military operations, from warfighting to providing humanitarian aid and disaster relief.

“The naming of HMS Queen Elizabeth heralds a new dawn, not only for the Royal Navy but also for the delivery of our nation’s security,” said Admiral Sir George Zambellas, the First Sea Lord.

“Her journey ahead will be global, strategic and one of inter-service and international partnership.”

The programme has been plagued with delays and overspending, with costs doubling from the initial £3 billion budget, meaning the Prince of Wales may never see active service. Questions have been raised about the need for aircraft carriers in modern warfare, but it’s one that the Royal Navy is quick to cut down.

“To question why the UK needs an aircraft carrier is to ignore the realities of being a significant player on the global stage with peacetime, wartime and humanitarian responsibilities,” said Captain

Simon Petitt, Senior Naval Officer of HMS Queen Elizabeth, in a Royal Navy statement.

“When all is said and done, how does a country show it is serious about its plans and ambitions?

This is the driving question behind any aircraft carrier. Because an aircraft carrier backs up the words of its leaders with an indisputable presence – and, when necessary, action.”

The new aircraft carrier will be home to the UK’s fleet of F-35 Joint Strike Fighters, one of which is expected to make its international debut at the Farnborough Air Show and RIAT. An F-35 was due to conduct a fly-by at the carrier’s naming ceremony but a fire during testing last month has temporarily grounded the fleet. At the time of printing it is unclear if the F-35’s international debut will go ahead.

Defence Industry Bulletin :: 14

Air Belgium issues RfI for F-16 replacement Joseph Carpenter

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he Begian MOD has issued

an RfI to begin the process of replacing the air force’s fleet of 54 ageing F-16 Fighting Falcons.

Five foreign government agencies received the request following approval from outgoing defence minister Pieter De Crem, which indicate the aircraft leading consideration: the Joint Program Office (JPO), the Navy Integrated Program Office (NIPO), the Directorate General of Armaments (DGA) of the French Ministry of Defence, the Swedish Defence and Security Export Agency (FXM) and the UK Ministry of Defence. These would naturally point to the F-35 Lightening II, Boeing F/A-18F Super Hornet, Dassault Rafale, Saab JAS39 Gripen, and Eurofighter Typhoon,

respectively.

De Crem has been vocal about the need for Belgium to acquire approximately 40 modern fighters to ensure the nation can keep up with its commitment as a strong partner within NATO and the European Union. Reports indicate that the total cost of the programme will weigh in at $5.45 bn.

The RfI does not commit to a future purchase, to the number nor selection of a specific aircraft, according to Ministry officials, but does aim to gather information beyond the open-source data used for initial evaluation. The current F-16s, which have all completed a mid-life update (MLU), are due to be retired from 2023 if approved

by the next federal government.

To meet this deadline, selection will need to occur in 2015 or early 2016 at the latest. The MOD favours a government-to-government agreement, rather than purchasing outright from a private company.

Belgium’s F-16s will begin retirement in 2023.

Photo: Chris Lofting

Development of UNASUR training aircraft continues Iñigo Guevara

Development of the

UNASUR Training Aircraft Programme continues, and the interested parties expect to establish a joint venture named UNASUR Aero before the end of 2014, which will be in charge of the programme management. An initial development budget of $60 million has been defined, of which Brazil’s National Development Bank (BNDES) will provide $38 million. The remainder will be funded by Argentina ($16 million), Ecuador and Venezuela ($3 million each). UNASUR Aero will fund development of two prototypes of the IA-73 at Argentina’s stateowned run Fabrica de Aviones (FADEA) aircraft factory, one prototype equipped with a western engine and avionics, and the other with a non-western systems and engine, likely to be supplied by

15 :: Defence Industry Bulletin

China. US technology embargoes on countries in South America has been the main driver behind the development of a non-western IA73 version.

Argentina intends to procure 50 aircraft, which will serve to equip the Escuela Militar de Aviacion (Military Aviation School) in Cordoba, replacing the recently retired Beech T-34 Mentor and eventually the EMB-312 Tucano as well as the recently delivered Grob G120 trainers. The Grobs were procured by FADEA as a stop gap measure pending development of the IA-73.

The next largest user will be Venezuela, which will procure 24 aircraft to equip the Centro de Entrenamiento Aereo (Air Training Centre) and replace the Aermacchi SF-260EU and the EMB-312 Tucano.

Next in numbers is Ecuador, which

expects to procure 18 aircraft to replace the T-34C Turbo Mentors in service with the Escuela Superior Militar de Aviacion (Superior Military Aviation School).

For now, there are no plans for the Brazilian Air Force to procure the IA-73 as a T-25 Universal replacement, however, several Brazilian companies will participate in its development. Akaer will be responsible for the wings, Novaer will develop the landing gear, and Flight Technologies (FlightTech) will provide the avionics. UNASUR Aero expects other countries, such as Bolivia, Uruguay and Paraguay to be interested in joining the project.

The first flight of the IA-73 is expected to take place in early 2015, with series production expected to begin in 2016.

Air First flight of Alenia Aermacchi MC-27J gunship Eugenio Po

The first flight of the demonstrator of the MC-27J multi-mission gunship Photo: Lidie Berendsen, AleniaAermacchi

After completing its

first flight, the demonstrator of a fully configured Alenia Aermacchi MC-27J multi-mission gunship/ tactical transport aircraft is conducting a test campaign from the company’s Turin Test Flight Centre. Alenia Aermacchi launched the MC-27J in partnership with ATK in July 2012, and the first phase demonstrator has been exhibited at Farnborough Air Show and at several other events.

Building on the proven tactical airlift capabilities of the regular C-27J, the MC-27J concept retains the aircraft’s transport capability, but can be rapidly converted for various special missions, including command and control, searchand-rescue, ISR, SIGINT (signals intelligence) and precision attack.

In the gunship role the MC-27J will be armed with a GAU-23 30 mm ATK automatic gun, with an Integrated Mission System and Precision Guided Munition (PGM)

weapons, but can be quickly go from gunship to a tactical cargo mission thanks to RO-RO (Roll OnRoll Off) pallets.

The demonstrator aircraft was modified with an L-3 Wescam MX15Di Electro-Optical and Infrared Turret mounted under the nose for ISR/SAR (Intelligence, Surveillance and Reconnaissance/Search And Rescue) missions. It was also fitted with Link-16 datalink software, with an advanced cryptographic system from SELEX ES (that could be used in a command post role) and with hardware for the ATK palletised mission system installation.

The installation of both the ATK developed modular RO-RO mission and weapon system, and a modified side door for the GAU-23 30 mm cannon installation has been completed in May. In June 2014, a new series of flight tests, including firing the side-mounted cannon, will be completed.

Ultimately it is expected that precision-guided glide bombs or missiles, such as the MBDA VIPER, Raytheon GRIFFIN or other systems, will be added to the MC27J’s armory. They could be carried underwing or launched from tubes in the cargo hold.

The Italian Air Force, USSOCOM (United States Special Operations Command), USCG (United States Coast Guard) and Air Forces of Greece, Romania, Lithuania, Australia, Bulgaria, Mexico, Morocco and Peru operate (or selected) cargo variant of the plane, the C-27J SPARTAN. So far Italy has signed up for the MC-27J, and it is modifying 6 of its current C-27Js for use with the Comando Operativo Forze Speciali under a program called PRAETORIAN. An initial batch of 3 will be outfitted in full MC-27J configuration, and the remaining 3 will have the modifications necessary to accept palletized mission systems. As well as looking for new customers, Alenia Aermacchi and ATK are also promoting the MC-27J to existing C-27J users. Interest in the upgrade has been reported from Australia and in the US where the USSOCOM is receiving 7 C-27Js (sea aside by the USAF) and might also have an interest in adding an armed/ISR capability.

Defence Industry Bulletin :: 16

Air Turkish link in radar chain to be strengthened Richard de Silva

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ATO support agency

NSPA has agreed to a $16.2m contract with Finmeccanica-Selex ES to modernise three RAT DL three-dimensional air defence radar systems that are currently in service in Turkey. The upgrade will ensure that the radars meet NATO standards, as well as optimising operational costs and reducing maintenance times.

The RAT 31 DL radar is part of the company’s family of long-

range 3D radar systems, available in fixed FADR and mobile DADR configurations. It covers an approximate 500km range and offers advanced features such as ECM and anti-radiation missile capabilities.

Finmeccanica-Selex ES has sold over 50 long range radar systems to customers worldwide, including eight NATO members.

According to the company, the latest upgrade will extend the

life cycle of the Turkish systems “significantly”. NATO’s air defence network will naturally benefit from the enhanced interoperation and availability of international radar coverage. The upgrade is made possible because of the modular system architecture employed in the design when it was first conceived, intended to allow for technological evolution in line with emerging customer requirements.

India looks afar for jet trainers as doors open to foreign OEMs Oliver Austin

I

ndia has floated a global

tender for its delayed intermediate jet trainer (IJT) through RfI, which will eventually see development by Hindustan Aeronautics Ltd (HAL). The move is being seen as the first publicised step to enable competition among low-tech defence products, a market that has traditionally been impenetrable for foreign investment.

In contention to respond to the RfI are Yakovlev, Alenia Aermacchi, Korea Aerospace Industries, Boeing, Northrop Grumman, Beechcraft, and Saab. The initial indigenous solution of the HJT36 Sitara, due for operational clearance by the end of 2014, has been snubbed, reportedly because of slow progress. The trainer has supposedly been held back for eight years due to late delivery of Russian NPO Saturn engines and the pace of development at HAL. Meanwhile, Indian defence companies have requested that the MOD extend the date of submissions for RFPs for the $1.2 bn production of 36 additional PC-7 Mk II basic trainer aircraft, 75 of which are already under license from Switzerland-based Pilatus and are required for at least half of the components and subsystems to be from domestic sources. Air Chief

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Marshal N A K Browne previously called for the MOD to drop the basic trainer acquisition entirely until the IJT and other delayed programmes were dedicated more attention. Delays in getting trainers into service are reportedly leaving their mark on the air force, with standards said to be dropping among new pilots.

In recent weeks, India’s Narendra Modi-led NDA government moved to raise the bar on Foreign Direct Investment (FDI) in the defence sector to allow for 100 % of foreign investment, spurring criticism from a number of countrymen including former Defence Minister A K Antony. The Confederation of Indian Industries (CII) welcomed the move, stating that it would help Indian SMEs to enter into the global supply chain of OEMs, and attract foreign OEMs to set up facilities in the country to engage in India’s appealing procurement plans.

Such a scenario could encourage the growth of technologies companies, invigorating other sectors. In turn, organisations like HAL would no longer have an assured customer base, demanding they raise standards and delivery times to compete. India’s $12 bn Medium Multi-role Combat Aircraft (MMRCA) programme has already run into fresh turbulence this year because the IAF has demanded that

Dassault Aviation and HAL must guarantee delivery of the Rafale in writing before the MOD signs the contract.

At a ceremony to induct a Russian-built aircraft carrier into the navy, Prime Minister Narendra Modi said the country must be “self sufficient” in its defence capabilities. Defence Minister Arun Jaitley also promised to speed up the procurement of military equipment following the near-standstill circumstances in the wake of historic corruption scandals. Jaitley said that significant funds must be provided to “those in the defence of the country” as he prepared to release the latest budget plans.

The HAL HJT-36 appears to have lost out on its place as India’s next intermediate jet trainer Photo: Wikimedia

Air RAPIDFire air defence system qualified with airburst ammunition Victor M.S. Barreira

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hales Air Systems

(TAS) has fully qualified its RAPIDFire truck-mounted selfpropelled multi-role air defence system within the GPR-AB-T (General Purpose Round AirBurst Tracer) 40mm anti-aircraft cased telescoped ammunition of CTA International (a joint venture of Nexter Systems and BAE Systems).

The firing session was conducted in April at the Direction Générale de l´Armement’s Essais de Missiles (DGA EM) missile test centre in Biscarosse, France. To qualify the ammunition, the gun system engaged and destroyed several aerial targets of Meggitt Defence Systems. GPR-AB-T ammunition feature cylinders of Tungsten said Thales Air Systems to DIB. RAPIDFire was designed for fire-on-the-move and day and night operations in protection of mechanised brigade-sized

units against air threats such as unmanned aircraft, cruise missiles, helicopters and fighters manoeuvring at low altitude, as well as against armoured vehicles and troops in terrain. The system offers an effective range of 4000 metres against air targets and 2500 metres against combat vehicles.

The 19 tonne weapon system consists of a Mercedes-Benz Defense Vehicles Unimog U5000 6x6 high-mobility chassis with the body by French company Soframe, to which a remotely controlled ballistic protected turret by Nexter Systems was installed. The turret is armed with the 40mm CTAS (Cased Telescoped Armament System) gun system of CTAI which is coupled to Thales UK SSH (Stabilised Sight Head) gyro-stabilised electrooptical fire control unit with IR and TV channels and laser range finder, immune to jamming techniques.

The vehicle’s protected cab hosts digital intercom, tactical radio system, ballistic calculator two dedicated digital control units for two operators. Power to the weapon system is delivered by 16 batteries.

An automatic ammunition handling system with stock of 140 rounds in the turret allows remote selection of CTAI’s cased telescoped ammunitions (APFSDS-T, TP-T, GPRPD-T, GPR-AB-T and TP-RR-T).

RAPIDFire systems can be coordinated with truckbased container-mounted CONTROLMaster 200 or CONTROLMaster 60 combined radar and weapon coordination modules.

Up to six combat vehicles can be coordinated with one C2 system.

Thales Air Systems also propose the turret armed with Thales UK’s STARStreak short-range surface-toair high-velocity missiles.

RAPIDFire self-propelled air defence system was qualified with airburst round Photo: Thales

Defence Industry Bulletin :: 18

Air Canadian maritime helicopters to finally enter service sans requirement Joseph Carpenter

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anada has signed a deal with Sikorsky Aircraft that amends its contract to hasten delivery of 28 CH-148 Cyclone maritime helicopters to the Royal Canadian Air Force. Under the C$5.7-billion programme, which was in danger of being cancelled last year, the fleet will replace the country’s 50-year-old Sea Kings.

While details on the agreement were not disclosed, this is the second time that the government has amended the Sikorsky contract and the company has been fined over C$88 million in penalties for missing previous deadlines.

According to reports, the Cyclone – a military variant of the S-92 – will come into service throughout 2015 and should begin flying limited operational missions from warships in early 2016. The aircraft will not be declared fully operational until 2018 when Sikorsky is due to deliver a software package that integrates all elements of the aircraft’s mission and warfighting capabilities.

However, it is understood that the aircraft will be introduced without fulfilling an initial requirement for a 30-minute run-dry standard in its main gear box, which would have

allowed for half an hour of control should a loss of lubrication occur.

The concession of this standard has sparked fears that safety has been displaced for the sake of completing delivery. The Defence Department has countered the outcry in a statement that calls the chance for the loss of lubrication “very remote” given that the gear box lubrication system has other safety features, such as a bypass valve that can isolate the gearbox case from the oil cooler in the event of an external leak, preventing further loss of transmission oil.

Growing market for military gyrocopters Richard de Silva

P

olice and military personnel

worldwide are increasingly becoming interested in the use of the humble autogyro, recognising the potential for the aircraft to be employed across a wide array of possible missions, including SAR, border patrol, reconnaissance and surveillance, and . While no means a new concept, many manufacturers with successful commercial platforms have recently begun to make forays into defence.

At the ILA Air Show in Berlin this past May, German systems integrator Data Capture Systems (DCS) received interest in its Falcon ISTAR gyrocopter from the likes of the Royal Saudi Air Force and from its own national KSK (Kommando Spezialkräfte) SF unit. Falcon can host a radar or EO/IR turret, streaming imagery by datalink in realtime up to distances of 100km.

There are reportedly plans to weaponise the aircraft in the future to serve as close air support.

At Eurosatory, an Austrian contender entered the defence market in the form of TrixEye, a gyrocopter designed by Trixy Aviation. Based on its Model G 4-2

19 :: Defence Industry Bulletin

and enhanced for professional use in several fields – such as aerial photography, news broadcasting and traffic observation – the company pitched an upgraded variant for military users at the exhibition, suitably painted in the greens and olives of army camouflage. TrixEye is built to handle varied climates and features removable canopy glass and a cabin heating system. Overall, it is intended to answer the demand for lightweight, transportable and inexpensive aerial options.

Upgrades include a reinforced frame, an additional fuel tank

under the cabin, a platform to fit a variety of different cameras, double electrical and fuel systems, onboard displays for both video and avionics, and a 150 HP engine.

“We are now targeting police, government, military, and Coast Guard customers,” says R&D Engineer Davorin Podpecan, “as well as companies responsible for monitoring pipelines, electrical systems, oil platforms and other critical infrastructure. The video feed can be linked directly to existing command and control centres and integrated with other surveillance networks.”

The TrixEye gyrocopter is now being marketed for military operations Photo: Richard de Silva

The Briefing Room Interview: Andrew Jankel, chairman of armoured vehicle specialist Jankel Andrew Elwell

Andrew Jankel, Chairman of Jankel, with Secretary of State for Defence Philip Hammond

J

ankel is a UK-based armoured vehicle specialist with operations in the US and Jordan, where it has a joint venture with the King Abdullah II Design and Development Bureau (KADDB).

It was founded in 1955 by Robert Jankel, who built a successful business out of up-armouring limousines for VIPs. The company now provides armour protection solutions and blast attenuating seats for governments and militaries around the world.

Defence Industry Bulletin recently caught up with Andrew Jankel, son to Robert and now the company’s chairman, at Eurosatory to understand how the firm is surviving in the current climate, what he thinks the future holds for armoured vehicle innovations and if the “new normal” for defence procurement is here to stay.

Jankel (the company, not the man) has a large stand at Eurosatory. Jankel has various armour technologies on show, space doesn’t feel like it’s a premium and it has a private meeting room. My first impressions: This plucky UK SME is investing heavily in its presence at the expo

and is confident of its return on investment during a difficult time in a competitive industry.

We sit down in the private meeting room and Mr Jankel tells me it’s a time of significant change in the defence industry. He says it’s a high-risk business and the rewards are there but when the large programmes dry up you have to either adapt to survive, or outlast the competition in a cash flow war of attrition.

“We have to look at a sensible way of managing the business over the next ten years,” said Mr Jankel.

“When you look at the US as an example, the last major downturn lasted well over a decade into the early 90s, and I think we’re going to see the same thing in the defence industry today, particularly in Europe and North America.”

How will Jankel negate the downturn in defence contracts and investment? Over the next few years how will the company’s defence and commercial work be distributed across the business?

“It’s a good question. Probably one third commercial and two thirds military in respect to our turnover. Over the next couple of

years we’re targeting a 50% increase in turnover but the vast majority of that will be from commercial rather than defence. We don’t see defence expanding but what we do see – at least in the areas we’re in – is a sustainable, solid business.

We don’t see a business that will necessarily grow over the next few years but there will always be peaks and troughs with defence programmes but you can’t account for them. We’ll always maintain our core capability in defence and expand that as and when these unique programmes come up.”

So the company is looking to expand its commercial business, which is fitting because it’s got pedigree there – “it’s like going back to the future for us,” said Mr Jankel.

“My father always loved speed; he was a runner-up British Saloon Car Champion, believe it or not in a Ford Anglia – the car they used in Harry Potter, which my kids find very funny that their Grandfather used to race one of those – that was heavily modified.”

Robert established his first car company in the 1970s, which he called Panther in a playful nod to Jaguar, and from that Jankel’s up-armouring business was born.

The design consultancy, as it was then, worked on a range of projects, including the homologation of the Mini to Japan and built rally cars for Volvo – “We even did the Vauxhall Cavalier convertible, do you remember that?” – but the key project was building limousines based on the Mercedes-Benz chassis.

Jankel has a long history of designing and building specialist vehicles for VIPs and specialist forces – it provides a number of vehicles to police forces, such as the Guardian to the UK police – so its chairman is confident it can win business on the commercial side to maintain the impressive growth it’s seen over the last decade.

Defence Industry Bulletin :: 20

The Briefing Room Jankel, like many companies in the industry, benefitted from the urgent operational requirements (UORs) that came about from operations in Iraq and Afghanistan. How are things different today?

“We were very heavily involved [with providing protection solutions for the government] at that time but those days are gone. Those were unique days in the defence industry and anyone who thinks those days are going to be at all sustainable are going to have a nasty surprise.

“An important factor about doing business in the defence industry today is that you have to have cash in the bank. You have to have emergency funds and breathing space because you have to be able to survive the drawn-out procurement process. We have staff and overheads regardless of what work goes out the door so you need that financial cushion to remain in a strong position when the government does decide to award contracts.”

What’s the solution?

“Where we are now is the “new normal,” which is actually still better than it was ten or twelve years ago but people have very short memories. The new normal is where you have longer-term programmes and traditional bidding processes but there’s still business to be won. We see projects alive and kicking, particularly in R&D, but not in the traditional European and North American markets – I’m talking about the Middle East and Asia.”

Companies in the defence industry must target new markets with an agile business model. For Mr Jankel, having three operations in different parts of the world has been fundamental to the company’s growth.

“Long-term contracts where you maintain the through-life support of a fleet of vehicles usually go to the larger defence primes; as an SME in the industry it can be

21 :: Defence Industry Bulletin

hand-to-mouth. We have three operations in different geographies, which is one of the ways we derisk the business. We have layers of different products and make sure that we don’t just have one product for one customer – we’ve suffered from that in the past and had our fingers burned. In today’s industry you have to have a robust portfolio of different products in multiple geographic areas.

“Three years ago our US business was doing phenomenally well and was stronger than the UK or Jordan, but over the course of the last 18 months things have swapped and it’s Jordan that’s really busy right now, mainly because there’s a lot of internal security work there and we’re doing a lot of up-armouring for the UN and other customers in the region. At the moment we’re sitting on our hands in the US waiting for the government to sign the contract. The industry at the moment is moving so fast in different directions you have to stay incredibly nimble.”

As we sat and talked about the company’s US business I began thinking about how to politely phrase the question: Why, as a UK SME living hand-to-mouth, did you think moving into the most competitive market in the world at a very difficult time was a good idea? Are you mad?

It may be something Mr Jankel’s been asked before; he addressed the question before I could get chance.

“Most people said, ‘You’re mad going into the most competitive defence market in the world at a very difficult time for the industry,’ but we had enough self-confidence as a business to know we had appealing differentiators,” Mr Jankel clarified.

“We started our US operation about six years ago, which was set up when we saw the European market beginning to reach saturation point. We’d done a lot

of work on large programmes in Europe, and particularly in the UK where we designed the protection system on Supacat’s Jackel vehicle and learned a lot about the blast and ballistic requirements, but we saw that there were only a certain number of vehicles that the British Army was going to buy. We’d grown the business considerably up to that point and then we asked how we were going to continue that growth – the obvious thing was to go the US.” How did you make it a successful business in the US against the odds? What were your differentiators?

“We did our own research and development,” said Mr Jankel, simply.

“We do an awful lot of the development and testing of our products … whereas in the US what tended to happen was that a company designs the technology but then the US government would either pay for or do the testing themselves, meaning quite often the company wouldn’t fully understand the depth of that technology.

“The results tended to be kept behind closed doors. So when we were able to talk to the project managers with the full understanding of the product that we had, it was a bit of a revelation to them. We went to the US with a more acute understanding of their problem; the deep knowledge we had about our products helped the PM’s solve them.”

Jankel has had a lot of success over the last decade with stepchange technology innovations that it’s brought to market.

Where does Mr Jankel think the market is heading in terms of new technology? Will there be a new wave of invention for ballistic protection and armoured vehicle design?

The Briefing Room “Do I think there are going to be game-changing new developments?

No, I think innovation is going to slow dramatically. I think there will be certain projects that push things forward but I see innovation in the industry slowing down because companies are loath to put money into development if there’s no programmes to win. There’s a lot of interesting technologies out there – some of it more mature than others – but I suspect there won’t be any significant revelations for the next few years unless there’s a requirement for it. Today, it’s about optimising the technology we have at the right price. Price is the key

driver now, not technology.”

Our time is up in the private meeting room. Just one more question. I know his father Robert was a speed demon. I know the Jankel family business was originally in the clothing and fashion industry. But what about Andrew? What could he be – what would he want to be – if he wasn’t the chairman of an armoured vehicle specialist?

“Occasionally I ask myself that question. I’m very lucky – I wake up everyday and I love what I do. I love the people and team that I work with and I love what we’re doing.

“We focus on protection – we don’t make weapons – we focus on protection and that’s incredibly rewarding. I wake up every day and know that we’re making things to better protect people – and I know that there are people walking around today that wouldn’t be if we hadn’t innovated in the way that we have – so I couldn’t ask for a better job.”

It makes sense. After all, at Jankel they say, “Protection is Everything.”

Jankel’s Hunter internal security vehicle. Photo: Jankel

Defence Industry Bulletin :: 22

The Briefing Room “This will take 10 years to rebuild…”

Chief of the Air Staff of the Austrian Armed Forces, Brigadier General Karl Gruber, lambasts his nation’s defence budget restrictions despite an urgent need to modernise. Georg Mader reports for Defence Industry Bulletin. projects across land, sea and air.

This politically induced situation has not helped to improve the understanding of our requirements as a military. The upcoming budgetary cuts to 0.5% have allowed this situation to escalate.

Internal austerity is desperately sought, primarily among projects and assets for the ‘expensive’ air force. So while this so-called interservice rivalry may be harsh, it is understandable.

Brigadier General Karl Gruber is rallying against cuts. Photo: Georg Mader

O

ver the last few years, Austrian forces have been hit with ‘unavoidable’ austeritymeasures by the grand-coalition government. Newly planned defence reductions to 0.5% of GDP may leave the country with almost no air force and Defence Minister Gerald Klug has warned that the army is going broke. A seemingly botched fighter deal continues to have suck money from the coffers.

The alpine EU-nation still upholds its neutrality, but neither this nonaligned status nor the geographical reality that Vienna is closer to the troubles in Ukraine than it is to Switzerland have helped to sway the accounts. Budgetary figures again look dark for 2015. As we discover, there is no greater voice of dissent than that of the nation’s senior commanders…

23 :: Defence Industry Bulletin

Mader: In many public statements related to the increasingly serious monetary situation of the Bundesheer (Federal Army) by politicians as well as top-brass officers, the impression given is that the running costs of the fifteen ever-unpopular, unnecessary and – after seven years – still legally unresolved EF-2000 Eurofighters, would kill the rest of the Army.

How do you perceive this apparent inter-service rivalry?

Gruber: When the former Austrian cabinet concluded in 2003 to purchase these fighters, it was announced that the then €1.9 bn purchase, and more than €50 mn annual operational cost, would be financed by an extra budget – outside the MOD’s annual household-share. But that did not happen. It has never materialized.

The costs are being paid out of the chronically limited 1% of GDP defence-budget. That, of course, has impacted other acquisition

Mader: Those within the MOD and military who are constantly advocating to give up active daytime air-policing and Quick Reaction Alert (QRA), and to hand over these security responsibilities to neighbouring countries or even NATO, without losing neutrality – who would take up this proposition? Is it really that simple?

Gruber: The role of active airsurveillance and active air-policing in the context of demonstrated documentation of neutrality has obviously fallen from memory among our politicians.

Is anybody still aware that nonexistent air-surveillance and no active component led to serious allegations in the 1960s that this legitimised militarily intervention in Austrian airspace? Almost every political party in Austria underlines its commitment to neutrality, but does not draw from that any consequences for the capabilities or the budgetary needs of their own armed forces! In the current heightened and monetary-driven public discussion surrounding a ‘takeover’ of active air-policing by neighbouring states, neutrality has not been mentioned much!

Strange...

The Briefing Room Mader: If that’s the worst case scenario, with the government managing contracted foreign jets to take on these duties, would they be based out of Zeltweg Airbase?

There’s no option in the East, and Vienna cannot be reached in time from Northern Italy or Bavaria…

Gruber: That’s correct. Currently I see no legally viable basis for a takeover. Nor am I aware of any related political talks, either bilateral or with NATO. Many politicians and journalists are confused by bilateral agreements covering border-crossing interceptions of rogue aircraft.

Having allied partners using NATO air-defence assets would only be possible by joining NATO. That’s a very unpopular idea in Austria. But even that would not enable an active reaction against rogue aircraft because these always remain under national responsibility, even for NATO states.

So you are right, for a country with the airspace size of Austria, even in the very theoretical case of NATOmembership, basing of our own or of foreign jets at Zeltweg would be necessary. This would generate considerable costs for the Republic, even more than today. Believe me, I know the budgetary and materiel shortcomings of our neighbours quite well. Currently I cannot see anybody who would have extra capacity or inclination to assume air policing for a neutral Austria merely because we cannot or will not budget for it.

Mader: Besides, you recently had to axe six very qualified Typhoon pilots from flying duty, is that right? What happened there?

Gruber: Our planning so far has projected a provision of 14 combatready pilots and two replacement pilots in training. Every year, two elder or experienced pilots who carried the implementation and service-entry of the ‘Eurofighter’, have been replaced by younger

ones. Pilots out of the Typhoon cockpit would instead bring in their system experiences as simulator instructors or related staff officers. Because of the recent budgetary limitation of JP aviationfuel, we were forced to go back to 10 combat-ready pilots plus two trainees. An alternative [further] reduction of individual flying-hours of below 80 per year was out of the question for me for air safety reasons. For four pilots, this meant an end to their Typhoon careers earlier than planned. That was truly a bad surprise for them. However, we hope to increase pilot numbers back to 14, through younger replacements, from 2017 on.

Mader: Will we see fewer Eurofighters on daily duty?

Gruber: Currently there is no plan to permanently reduce the Austrian Eurofighter fleet. Missing budget for spare parts or repairs could nevertheless force us, even this year, to ground two to four of them for some months. Their return to active duty is targeted as soon as the funds are released again.

In this period, flying-hours will level around 1,000 to 1,100 hours annually. We hope to get back to a level of 1,500 by 2017. By the way, the Saab-105OE and C-130K crews were reduced because of fuelrestrictions, but not so among the rotary-fleet, as these are not the big ‘fuel guzzlers’.

Mader: So you hope for light at the end of the tunnel. But what about performance and active QRA-ability for 2015? Are we in line for the infamous Swiss ‘office hours’?

Gruber: Statistics from last year show that for QRA in daytime hours, we were able to react effectively to three out of four incidents. An assessment is currently underway to see what level of readiness is possible.

I’m arguing for a duty-time model, which allows for flexible

alignment to the expected level of threat. For example, large-scale events or political summits in or around Austria [such as Iranian nuclear talks] would be deemed at considerable risk of attack.

Mader: If we could turn to the rotary side of things…the ongoing cockpit-modernization of the AB212 fleet look to see a service life of more than 50 years and are ‘safe’ from Austrian cuts because the aircraft has civil applications (search and rescue). But what about the 47 year-old Alouette-IIIs and the OH-58Bs? Are there signs that a light multirole type could replace both towards the end of the decade?

Gruber: The MLU of the AB212 will be completed by the end of 2015.

The system will see a considerable gain in operational value, especially in the long-overdue NVG capability. The General Staff has given directions to operate the Alouette-III up to 2020 at the latest.

Logistically, a longer operation would be possible, but has not yet been decided. Once the MLU AB212 is implemented, Alouette-III will begin to be phased out. The very last of them will probably be used for rotary-training at Langenlebarn.

The OH-58s will remain in service beyond 2020. With its multi-role capability, the system today is one of the most capable, and is used for scout/recce, combat, airsupport and air-surveillance, day and night. Additionally, we have given it a domestic configuration for the deployment of special forces (Jagdkommando). A new multi-role helicopter as a replacement for both types is in the plans, yes – at least on paper…

Defence Industry Bulletin :: 24

The Briefing Room

There are currently no permanent plans to reduce the number of the Austrian Air Force’s Eurofighter fleet. Photo: Chris Lofting

Mader: If you ask Sikorsky, they talk about the need for ‘routine updates’ that any S-70 operator has to implement sooner or later.

Did you know early in the process that the navaid/software upgrades for Austria’s nine S-70A42s would cost €50-80 m and that this wasn’t available [thereby severely reducing their operational readiness]?

Gruber: In the coming years, the S-70s will also bear considerable budgetary challenges. The requested amount for mandatory renewal-steps for its avionics is not yet estimated in detail. Much can be remedied if we find a partner with similar project-goals, but at worst, operations on the nine ‘Black Hawks’ will cease towards 2018.

Mader: If these politically induced and careless downgrades continue into 2015/16, capabilities and services provided by military helicopters will be reduced and the C-130 would have to take on evacuation duties during our annual floods. Are the politicians ignorant of this or simply

25 :: Defence Industry Bulletin

apathetic?

Gruber: Much will now depend on making it clear to the politicians responsible that continuing in this way will have direct consequences.

Being responsible for flight safety and doctrine, I am not ready to order a further reduction of flyinghours. Requirements for a combat helicopter pilot are too manifold and diverse to master under these limitations. Citizens at risk of being caught in an overnight avalanche area or in brown floods have a right to know if their lives are in danger.

Mader: So what message do you have to populations and politicians in this difficult hour? Many colleagues abroad are wondering why, in the light of an unexpected and perhaps persistent securitycrisis in Eastern Europe, we are demolishing capabilities and financial foundations.

Gruber: My message has little to do with Ukraine. Many European forces today are suffering a lack of funding as well as a lack of clear and transparent political

decisions as to what the predicted roles of European forces should be. Ukraine is a flaring crisis, but against this insecure doctrinal and structural situation, I, as a military commander, can only prepare for the most flexible reaction to several possible developments. But what is today given-up in capabilities, capacities, competencies and knowledge, will take 10 years to rebuild, mostly in the capabilities of the air arm. Furthermore, climate change will increase our demand for air-support assets. To keep up, we will continuously need upgrades to aerial surveillance and reconnaissance capabilities as well as air transport for rescue and evacuation missions. There must be high and sustainable availability of these things. The results of 2013’s military-service referendum shows that the population is expecting this. Meanwhile, neutral active airspace security remains an uphill battle.

Citizens at risk of an avalanche have a right to know if their lives are in danger [due to budget cuts]

EUROSATORY

French MOD section at Eurosatory 2014. Photo: Andrew Elwell

Japan opens for business Richard de Silva

The Kawasaki KLX250 motorcycle could prove to be a military asset abroad. Photo: Richard de Silva

J

apan set up its first ever pavilion at Eurosatory 2014, featuring 13 enterprises showcasing a range of non-lethal security equipment. Included in the line-up were Mitsubishi Heavy Industries, highlighting its armoured vehicles, and Fujitsu, with integrated soldier information and communications technology.

Kawasaki Heavy Industries brought what it described as its most popular product in the Visualised Portable Mine Detector – a Pulsed Radio Wave sensor integrated with

a head-mounted display to visually position IEDs below the ground – and the KLX250 motorcycle – practically identical to those of the commercial market, but used for reconnaissance, emergency response and deterrence by the JGSDF. The Japanese contingent was invited to the show following the decision of Prime Minister Shinzo Abe’s Cabinet to loosen the regulations blocking arms exports in April. Under the new rules, Japan is still prevented from selling weapons to nations that use arms that are in violation of international treaties, those that are under a United Nations arms embargo, and those already engaged in a military conflict.

Hirotaka Satoh, Kawasaki’s senior staff officer for the defence and space systems department told Defence Industry Bulletin that while direct marketing of its products to overseas customers

may remain cautious, there was a great deal of hope to open up to new business, as well as to begin new partnerships with others in the wider defence industry.

In further developments after the exhibition, Shinzo Abe’s Cabinet announced that it has approved a constitutional reinterpretation to allow Japan a limited right to collective self defence, overturning a 67-year ban on allowing the JSDF to assist close allies should they come under attack.

The Land of the Rising Sun, it seems, has entered a new dawn.

Defence Industry Bulletin :: 26

EUROSATORY Czech armed forces revises radar equipment Thomas Withington

C

zech radar specialists

Retia will deliver its second two-dimensional (range and azimuth) ReVISOR ground-based air surveillance radar to the Czech armed forces by November 2014.

The company has already delivered a single radar to the 25th Ground Based Air Defence (GBAD) Regiment of the Czech Armed Forces, which was handed over in April 2014. The ReVISOR is a shortrange X-band (8.5-10.68 Gigahertz) radar which has an instrumented range of 13 nautical miles (25 kilometres), and a 16400 feet (5000 metres) ceiling.

Employing Active Electronically Scanned Array (AESA) technology, the radar has an integral Identification Friend or Foe (IFF) secondary radar and can exchange its data using the ASTERIX (All Purpose Structured Eurocontrol Surveillance Information Exchange)

and AWCIES (Air Command and Control System Wide Common Information Exchange Standard).

One of the key features, according to Retia experts with whom the author conversed at Eurosatory, is the radar’s accuracy which is particularly effective against targets with a low radar cross section such as Unmanned Aerial Vehicles. To this end, targets can be detected at up to 50 metres (164 feet) in range and up to 0.25 degrees in terms of azimuth accuracy.

In service with the Czech armed forces, the ReVISOR radar will be used to provide air surveillance and fire control data to units of the 25th GBAD Regiment which operate the Saab RBS-70 short-range surfaceto-air missile system. The Czech Republic signed a contract for the procurement of the RBS-70 laserguided GBAD system in 2004.

Bridging tactical radios and smart phones Thomas Withington

F

innish defence

communications specialists Elektrobit took advantage of the Eurosatory defence exhibition to showcase its new Tactical LTE (Long Term Evolution fourth-generation wireless communications protocol) gateway.

The Tactical LTE gateway allows military users of conventional tactical radios to connect with civilian smartphones and vice versa. Its architecture consists of a base station which can be connected to the firm’s EB Tactical Wireless IP (Internet Protocol) ‘TacWIN’ Network which provides highdata rate battlefield IP networks from brigade to platoon levels at ranges of up to 30 kilometres (19 miles).

By employing the Tactical LTE ensemble users can enable their smart phones to connect with military personnel equipped with conventional radios, provided that they are attached to an Elektrobit

27 :: Defence Industry Bulletin

H3 handset or appropriately equipped (see below) smartphone.

The radio uses the smartphone to pass Voice Over IP communications traffic to the Tac-WIN network.

From there the traffic enters the Tactical LTE gateway and is then routed to the smartphone of the intended recipient. The process works in reverse for those smartphone users wishing to connect to a tactical radio.

The Tactical LTE can either work with Elektrobit handsets such as the H3 or alternatively with third party smartphones equipped with the appropriate PIN (Personal Identification Number) codes and SIM (Subscriber Identity Module) cards. The company told the author that they are planning a live on-air demonstration of the Tactical LTE gateway in September 2014, with deliveries possible from 2015. Next year, Elektrobit also plans to release a new smartphone handset which will be usable with the Tactical LTE.

ASV 200 VTOL multi-mission UAV The ASV 200 is a VTOL UAV designed from the start with an open and modular system architecture. It is equipped with a new high-performance liquid cooled engine and can operate at high altitude in a fully autonomous way for up to 7 hours.

General Dynamics displays new generation Piranha 3+ General Dynamics European Land Systems

displayed the newest member of the Piranha family at Eurosatory. The Piranha 3+ is the new generation of the company’s successful Light Armoured Vehicle (LAV) family featuring improved protection and mobility. The Piranha 3+ has also been designed with “inherent growth” in mind, incorporating a ten % increase in payload, a fully modular protection system and reserve electrical power to meet the electrical needs of future systems and personal equipment needs and spare cooling capacity.

PEARL revolutionises gunshot The PEARL (Personal Equipment Add-on for Reactive Localisation) system has been developed by METRAVIB to detect and localise gunshots.

PEARL is a complimentary accessory to be fitted on all types of weapon and target/ designation equipment.

EUROSATORY Extreme off-roader to patrol borders Richard de Silva

IMI’s CombatGuard 4x4 cut an imposing figure on its debut. Photo: Richard de Silva

I

srael Military Industries

(IMI) unveiled its latest design at the exhibition in the intimidating shape of the CombatGuard 4x4 extreme off-road highly protected armoured combat vehicle (ACV).

CombatGuard has been designed in conjunction with Ido Off Road Center to offer a high-speed, multimission system at various levels of protection and has proved to match or exceed tracked combat vehicle performance when it comes to mobility in some of the most extreme terrain.

The vehicle operates on 54 inch tyres at a maximum combat weight of 8,000kg and can reach speeds of up to 120 km/h off-road. Adjustable ground clearance can be adjusted to up to 7m, with fording capability of 1.5m, and can be handled on gradient’s of over 70%. Protection for up to 6 or 8 fully equipped troops is provided by the vehicle’s monocoque capsule levelled to

STANAG 4569, offering defence against small arm AP rounds and a belly resistance to EFP and IED blasts. A modular design allows for several variants, including medevac, scout, command, and communications support. IMI also offers integration of its own ‘Bright Arrow’ APS, incorporated with the remote controlled weapon station.

CombatGuard would typically be deployed for border protection and supporting counter-terror operations, whether it be in rocky terrain or in built-up urban environments. No orders have been placed to date for the vehicle, but is likely to be added to the arsenal of the IDF. State-owned IMI has struggled to balance its books in recent years, reporting an increasing loss over the past two years, but it was announced in April that the company is being privatised with a tender for sale to take place before 2015.

New medium tank concept unveiled CMI Defence and BAE Systems Hägglunds unveiled a new medium tank concept at Eurosatory this week based on the Cockerill XC-8 turret and the CV90 tracked chassis. The Cockerill XC-8 is a low-weight concept turret that looks to fulfil the broad operational flexibility demanded by medium tank requirements. The concept offers advanced 105mm or 120mm guns; the Cockerill 105mm high pressure gun provides crew commanders with a wide choice of ammunition to suit the tactical situation while the 120mm gun provides a strengthened anti-armour capability.

New Hawkei from Thales An export version of Thales’s Hawkei light protected vehicle wass on display at Eurosatory where potential customers had an opportunity to see the vehicle in action in the live demonstration zone.

The 7-tonne, 4x4 Hawkei is designed for rapid airmobile deployment and is available in a variety of variants including command, reconnaissance, liaison and utility.

Oshkosh Defense M-ATV UGV tech Oshkosh TerraMax

unmanned ground vehicle technology integrates highpower military computers, intelligence, drive-by-wire technology and state-of-the-art distributed sensing systems to make unmanned ground vehicles run with no driver and limited supervision..

Transparent ceramic armour IBD Deisenroth Engineering displayed its new Transparent Ceramic Protection (TCP), which closes a ballistic gap in today’s vehicle protection, showing “the same ballistic performance as opaque ceramic armour at a weight that is only about 30% of today’s armour glass.”

Defence Industry Bulletin :: 28

DVD UK armoured vehicle programme update At the DVD event in Millbrook, Colonel Nick Hunter, Deputy Programme Leader for the UK MOD’s Armoured Vehicles Programmes unit gave Defence Industry Bulletin an overview of upcoming programmes, which included updates on key phases and plans for the projects

Warrior Capability Sustainment Programme (WCSP)

O

n target to deliver the initial

service acceptance of 28 vehicles in 2020. The programme achieved the Preliminary Design Review Anchor Milestone in 2013

and a Delta Design Review in April 2014. Unmanned firing trails with the 40mm CT Cannon integrated into a Warrior AFV took place in March 2014. Lockheed Martin and

MOD are now working towards the next major milestones: Manned firing in Q1 2015, another design review in Q2 105 and Acceptance Trails in mid-2015 to late 2016.

Utility Vehicle (UV)

T

he UV programme seeks to

deliver increased operational effectiveness through higher tempo and better balance of 360 degree protection. It is currently in pre-concept phase. UV will replace 430 legacy Bulldog vehicles and parts of the CVR(T) fleet. UV wheeled roles are assumed to be an off-the-shelf 8x8 design with minor modifications for UK C$I fits.

Army HQ considering options for elements of UV to be fulfilled by ABSV. Currently awaiting further direction from Army HQ for the requirement.

UK MOD works on getting its armoured vehicle programmes up and running. Scout SV prototype at DVD, June 2014. Photo: Trevor Sheehan, Defence Photography

Challenger 2 Life Extension Project (CR2 LEP)

T

he CRP2 LEP project will enable the UK to field a Battle Tank up to and beyond 2035. The project is currently in the Concept Phase. Single Statement of User Need (SSUN): “The User requires CR2 Out of Service Date extended

from 2025 to 2035 in order to continue to provide precision direct fire manoeuvre capability in intimate support to infantry in close combat.” Studies conducted

by BAE Systems and DSTL, which have informed requirements

Armoured Battlefield Support Vehicle (ABSV)

A

BSV is an aspect of WCSP

to deliver common, enhanced levels of mobility and survivability in support of heavy force close

29 :: Defence Industry Bulletin

combat operations across the mosaic of conflict. Currently awaiting ABSV mandate to confirm requirements with tender to follow.

and identified areas to reduce through-life costs. Initial Gate is currently due by Q1 2015. AVP have just conducted a RfI to inform the future CR2 LEP procurement strategy.

Industry Statistics – The Big 10 Looking back at first quarter developments and the most recent stock price movement over the second quarter for today’s ten leading defence companies…

(US)

• • • • •

Q2 Share Price Chart (USD)

Q12014 net sales decreased 4% to $10.65 billion and net earnings increased 23% to $933 million ($2.87 per diluted share) In that same quarter, the company generated cash from operations of $2.1 billion and repurchased 7.0 million shares for $1.1 billion Increased its 2014 outlook for operating profit, earnings per share, and cash from operations, but it is still unlikely to be a growth year Sales to the U.S. military likely to drop by 6.0% in 2014 after already suffering a 4.0% drop in 2013 Anticipates more orders for the F-35 (the company’s single biggest programme) from Australia, South Korea, Israel and Singapore, to be made from 2015 and beyond

Defence Industry Bulletin :: 30

Industry Statistics – The Big 10 (US)

• • • • • • •

Q12014 earnings fell 13 % Dip attributed to changes to a move to put most workers to 401(k) retirement-savings plans from traditional pension plans starting in 2016 at a cost of $US330 million Demand for commercial aircraft remains strong Defense, space and security division reported weaker results amid tight defense spending. Revenue declined 5.9 %, while operating earnings fell 6.5 % Shares edged up about 2 % as the results beat expectations and the company raised its earnings guidance Per-share earnings estimate for the year rose from to $7.15 to $7.35 (previous estimate $7 to $7.20) to reflect tax settlement. It backed its revenue view Profit of $US965m ($1.28 a share) down from $US1.11bn ($1.44 a share) on previous year

(UK)

• • • • •

Q2 Share Price Chart (USD)

Q2 Share Price Chart (USD)

Operating profits covered interest payments 4.9 times in 2013 At the end of 2013, BAE reported net debt of £704m and equity of £3,418m Reported an operating margin of 4.4% in 2013, well below its six-year average of 7.7% due to non-cash impairments of £865m to its US business, reflecting US defence spending cutbacks.

Announced plans to reorganise its interests in Saudi Arabia into one company to enhance its relationship with regional partner Riyadh Wings, with BAE holding the 51% majority stake. Saudi business accounts for roughly $3bn of company revenue per year New US CEO due to take up position in 2015

31 :: Defence Industry Bulletin

Industry Statistics – The Big 10 (US)

• • • • • •

Q2 Share Price Chart (USD)

Q12014 earnings per share from continuing operations reported at $1.87, with an operating margin of 14.3% Reported Q12014 net sales of $5.5 billion compared to $5.9 billion in Q12013 Strong operating cash flow from continuing operations of $659 million compared to $422 million for in Q12013 As previously announced, increased annual dividend by 10% to $2.42 per share Net sales down across Integrated Defense Systems; Intelligence, Information and Services; Missile Systems, and Space and Airborne Systems Major recent contracts include those for the Patriot air and missile defense capability for Kuwait; the Joint Polar Satellite System (JPSS) programme for NASA; the Standard Missile-3 (SM-3) for the Missile Defense Agency; $116m radar spares for an international customer; and $81 million for software enhancements to Active Electronically Scanned Array (AESA) radars for the U.S. Air Force

(US)

• • • •

Q2 Share Price Chart (USD)

Q12014 net earnings of $595 million ($1.71 per share on a diluted basis) marked a 5.6 % increase on Q12013 net earnings of $571 million ($1.62 per diluted share). Overall the quarterly revenues were $7.3 billion and operating earnings were up 2.8% Q12014 total backlog increased by more than 20% from year-end 2013 Biggest contract sealed at the beginning of the year was for $10 bn (+ potential additional $3 bn) from the Government of Canada to provide military and commercial vehicles, training and support services to an international customer over 14 years Other major orders include $645 m from the US Navy for an additional DDG-51 Destroyer (totalling a five-strong fleet); $520 m for long-lead material for 5 US Navy Virginia-class submarines; and $210 m for the UK’s Bowman tactical communication system for long-term support and capability upgrades

Defence Industry Bulletin :: 32

Industry Statistics – The Big 10 (US)

• • •

First quarter 2014 net earnings increased 18 percent to $579 million, or $2.63 per diluted share, compared to $489 million, or $2.03 per diluted share, in the first quarter of 2013.

First quarter 2014 total operating income increased $86 million or 11 percent.

Wesley Bush, Chief Executive Officer, “Our team is off to a good start for the year, with a solid first quarter set of results. We continue to focus on superior program execution, affordability and innovation in our drive to achieve strong sustainable results. We’re proud of our team’s performance and the continued focus on delivering value for our customers.”

(Netherlands)

• • • •

Q2 Share Price Chart (USD)

Q2 Share Price Chart (USD)

Revenues increase five percent to € 12.6 billion EBIT* before one-off € 700 million Net income rises 93 percent to € 439 million “The Group made further progress in the opening quarter of 2014, with improved revenues and earnings per share,” said Airbus Group CEO Tom Enders.

33 :: Defence Industry Bulletin

Industry Statistics – The Big 10 (Italy)

• • •

Quarterly orders rose 11 percent to 2.896 billion euros ($4.04 billion) mainly thanks to its helicopters business.

Temporary delays in some programmes expected to recover over the course of the year.

Peruvian driverless metro contract leveraging core capabilities of Ansaldo STS and AnsaldoBreda; not included in Q1 results.

(US)

• • •

Q2 Share Price Chart (USD)

Q2 Share Price Chart (USD)

First quarter earnings per share of $1.32 and net income attributable to common shareowners of $1.2 billion, down 5 percent and 4 percent respectively, over the year ago quarter.

Sales of $14.75 billion increased 2 percent.

“UTC delivered strong results to start the year with continued momentum coming out of 2013,” said Louis Chenevert, UTC Chairman & Chief Executive Officer. “All five of the segments contributed to UTC’s organic sales growth in the quarter. Our focus on growth and execution is paying off as we capitalize on improving end markets.”

Defence Industry Bulletin :: 34

Industry Statistics – The Big 10

(US)

• • • •

Q2 Share Price Chart (USD)

Diluted earnings per share of $2.01, an increase of 9% compared to the 2011 first quarter.

Net sales of $3.6 billion.

Net cash from operating activities of $137 million.

“Overall, given the challenging environment, we had a very solid first quarter, underscored by strong orders, sales and EPS,” said Michael T. Strianese, chairman, president and chief executive officer. “Orders grew 22% compared to last year, driven by several international new business wins and earlier than expected orders for several of our DoD and international contracts, resulting in a book-to-bill ratio of 1.14x. We ended the quarter with funded backlog of $11.4 billion.”

Charts provided by Hargreaves Lansdown

35 :: Defence Industry Bulletin

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Defence Industry Bulletin :: 36

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