Defence Industry Bulletin - October 2014 (#3) by Defence IQ

Welcome 1 Featured Nation 3 Land 5 Sea 11 Air 16

The Broader Picture 21 The Briefing Room 22 Quarterly Stats 30 More Information 35

Welcome to Defence Industry Bulletin! U.S. sailors guide an F/A-18C Hornet on the flight deck of the aircraft carrier USS George H.W. Bush in the Arabian Gulf as it prepares to launch a strike in the vicinity of Erbil, Iraq.

n the three short months

since we released the last issue of Defence Industry Bulletin, President Obama has sanctioned air strikes in Iraq and Syria after securing support from one of the most powerful regional coalitions in recent memory. Saudi Arabia, Jordan, UAE, Bahrain and Qatar have all thrown their weight behind Obama’s newfound combative approach while the UK Denmark, Belgium, France and Australia have also pledged military support to defeat the ISIL threat. Following years of diffidence on the international stage, Obama’s place in the history books is being rewritten as you read this. He is transitioning from an apologist to a war president. While the military coalition is only conducting air

Photo above: IIP Digital

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strikes at the moment, many analysts believe boots are needed on the ground if the mission objectives are to be achieved. Without a clearly defined strategy, could the US and her allies be facing another protracted war of attrition in the Middle East without even having exited the last one? In this latest issue, we examine the argument over the alleged quality gap between Russian and Chinese military technology, with an eye towards Indian procurement decision-making, as well as insight into the increasingly active world of fast craft acquisition. We home in on Mexico amid the announcement of increased funding and budget allocation for its homeland security operations and offer an update on why German defence companies

may be uprooting for pastures new. Enjoy the magazine and don’t forget to explore the many other benefits of Defence IQ Premium Membership.

Andrew Elwell and Richard de Silva

Featured Nation Defence Industry Country Focus: Mexico Iñigo Guevara

exico’s defence industry

is almost entirely run by its military institutions and currently produces a variety of small arms and light weapons, 4x4 tactical patrol vehicles, unmanned aerial vehicles interceptor craft, coastal and ocean patrol vessels. The Ministry of National Defence (SEDENA) runs through its Military Industries General Directorate (DGIM) the Fabricas Militares (Military Factories), the Ensambladora Militar (Military Assembly) and the Centro de Mantenimiento Blindado (Armour Maintenance Centre). The Fabricas Militares produces small arms, ammunition, grenades, and mortars. Until recently it built the Heckler und Koch family of pistols, MP5 sub-machine guns, G3 assault rifles and HK21 machine guns under license, which were standard for the Mexican Army, but it has since shifted to concentrate on producing the locally designed FX-05 Xiuhcoatl (Fire Serpent) 5.56 x .45mm assault rifle and the Morelos 7.62mm sniper rifle. The Mexican Army requires 155,000 FX-05 assault rifles of which by September 2014 it had produced some 45,000. Current plans call for the G3 to be phased out by 2018. The Ensambladora Militar is producing the DN-XI tactical patrol vehicle based on the Oshkosh SandCat which uses a Ford F350 chassis. The DN-XI is equipping the Army’s motorised cavalry regiments, replacing previously armoured commercial-off-the-shelf 4x4 pick-up trucks, which had been procured as a stop gap measure from 2008 to equip Army units, particularly for urban operations. Up to 1,000 DN-XI are required by 2018, and some examples have been delivered to the Marines as well as Air Force security units for trails. Some 220 were scheduled to

have been produced by September 2014, with an annual production rate of 200. On September 16, the Army presented a 15 tonne 4x4 armoured vehicle, the Kitam (Wild Boar), which is likely meant to serve as a command vehicle in the motorised cavalry regiments. Core to SEDENA’s future developments is the Centro de Investigacion y Desarrollo del Ejercito y Fuerza Aerea (Army and Air Force Research and Development Centre), which was established in May 2013. The R&D Centre is focusing on developing four main areas: telecommunications systems, surveillance systems, specialised hardware and software. The Ministry of the Navy (SEMAR) for its part runs five shipyards and five maintenance and repair centres through the Naval Construction General Directorate (DGCN). The two largest shipyards are ASTIMAR No.1 in Tampico, located on the Gulf of Mexico and No.20 Salina Cruz located in the Pacific. Each of these is producing the Oaxaca-class 1,680 tonne ocean patrol vessels. The Oaxaca-class is a Mexican design and is the latest development of the trinomio concept of operating a helicopter and a fast interceptor boat from a lightly-armed corvettesize vessel. ASTIMAR No.20 built two 3,666 tonne landing ship tanks (LST) in 2011-2012, which have been the largest ships built in recent times. Other shipyards include the ASTIMAR No.3 in Coatzacoalcos, which specialises in the license production of the Polaris II-class interceptor craft, No.18 in Acapulco and ASTIMAR No.6 in Guaymas, which produces EEZ patrol and auxiliary vessels up to 600 tonnes. SEMAR’s research and development institute, the Instituto de Investigacion y Desarrollo

Tecnologico de la Armada de Mexico (INIDETAM) finished development of its Vehiculo Aereo No Tripulado VANT in 2012; VANT is a mini-UAV’s designed for use of its Marines and Special Forces, with a 6km range and 80 minute endurance. INIDETAM is conducting further research to develop longer and larger UAVs. UAV development in Mexico has been spearheaded since the mid 2000s by Hydra Technologies, the only defence sector private-

Mexican soldiers are to benefit from continued budget hikes - Photo by USAF

company in Mexico. Hydra Technologies produces the G1 Guerrero (Warrior) UAV with a 40km range and 6 hour endurance and the S-4 Ehecatl (God of the Wind), a tactical UAV with an 80km range and 8 hour endurance, both of which are in service with the Mexican Air Force and federal Police. From the successful S-4, Hydra Technologies has since developed the S-45 Balaam (Foreseer) with increased range of up to 100km and payload and the S-5 Kukulkan (Feathered Serpent), which is its initial MALE aircraft. The S-45 and S-5 have yet to be ordered.

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Featured Nation Mexico requests bigger defence budget Richard de Silva

exican President Enrique Peña Nieto has proposed (5 September) a scaled-up 2015 defence budget that would increase expenditure by 9 percent over 2014. The request outlines US$7.4bn for the Secretariat of National Defence (SEDENA) and the Secreteriat of the Navy (SEMAR). Mexico’s congress will now have until November 15 to assess and revise the proposal, but it is likely to be approved – and possibly be augmented with another $0.77bn – considering the vital need for the country to maintain and boost its internal security efforts in the wake of consistently rampant cartel activity. The 2014 already marked an increase of 7 percent in 2014 to $6.9bn. At the same time the United States is spending more than ever to train Mexico’s armed forces, reaching $15m in 2014 (up from $3m in 2009). U.S. Northern Command announced in 2013

that the U.S. “had more than 150 engagements, sharing training opportunities with more than 3,000 Mexican soldiers, sailors, airmen and Marines.” In August, Mr. Peña Nieto inaugurated a new unit of the federal police force in the form of a scaled-down version of what was initially planned as a larger, independent gendarmerie. The new 5,000-strong force will be charged with protecting key parts of the economy and national infrastructure from predatory drug gangs, including mining operations and farms. Around 100,000 Mexicans have died or disappeared since late 2006 due to cartel activity. While the latest statistics indicate a drop in violence in some of the key hotspots (including a 15 percent drop in the murder rate this year), violence and crime overall has remained relatively steady in spite of government spending and

A VCR-TT 6X6 APC on Madero Street in downtown Mexico City Photo Wikimedia

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support from other nations. Recent market studies have found that the Mexican annual defence budget is expected to grow at an estimated CAGR of 12.93 percent from now until 2019, where it should reach approximately $11.6bn. The growth reflects the ongoing modernisation programme intended to replace the country’s aging military hardware, particularly its air fleet. Those looking for commercial opportunities in this space should soon find interest in Mexico’s appetite for transport aircraft and helicopters, ISR equipment, UAVs, naval vessels and special operations hardware. Regional security leaders and experts will be assembling in Cancun at MEXSEC 14 (10-11 December, 2014) to discuss best practice, cooperation and focused expenditure.

Land British Scout assembly could move from Spain to home soil Philip Rood

K Prime Minister David

Cameron’s announcement of the £3.5bn deal with General Dynamics UK (GDUK) to manufacture 589 Scout specialist vehicles has provided a timely boost for the British Army’s 2020 vision. Besides demonstrating the UK’s commitment to increased defence spending, the announcement at the NATO summit in Wales was an unequivocal statement of the importance of the Army’s future role as it grapples with manpower and resources issues in the light of the drawdown from Afghanistan. Deliveries are due to start in 2017 and the programme constitutes the biggest armoured vehicle order the UK has signed since the 1980s.With the £1bn programme to upgrade the Warrior Armoured Fighting Vehicle also underway and upgrades to the Challenger tank in the pipeline, the Army’s inventory of front line equipment looks secure for decades to come. The order for six Scout variants is scheduled to begin with the

Protected Mobility Recce Support version. The first brigade should be ready to deploy in 2020. According to GDUK, the Scout has outstanding mobility, due to a combination of an extremely powerful 805bhp engine and a 7 wheel-station running gear, incorporating a sophisticated dual-rate suspension. The result is a top speed of 70kph and terrain accessibility that is far superior to in-service vehicles. The Scout turret, designed by Lockheed Martin UK, mounts sophisticated Thales UK sights with detection and identification ranges which are more than the double that of the in-service BGTI system. These are integrated with crew stations, via the latest in GVA-compliant Open Architectures, allowing the crew to capture, analyse, manipulate and store over 6TBs of intelligence and to share this intelligence in real or very near real time. However, the programme is not without its critics for the fact that certain elements are already behind schedule and the manufacturing

order has been placed without the vehicle passing its critical design review. GDUK says the reconnaissance variant critical design review will be held later this year and the first prototype unveiled in 2015. The initial estimates of economic benefit to the UK have also proved to be exaggerated. One of the factors in GDUK winning the initial contract over BAE Systems was that more than 10,000 jobs would be secured in the UK. According to the latest announcement, the work will secure 1,300 jobs in the wider UK supply chain, based on revised plans to build at least the initial vehicles at the GD European Land Systems plant at Santa Barbara Sistemas in Spain. It is believed that the MOD has asked GDUK to look again at restoring subsequent production to the UK. Regardless of final assembly, MOD procurement minister Philip Dunne said that 60 percent of the platform’s systems and sensors will be UK manufactured.

The 40mm cannon required for Britain’s next generation military vehicles has been jointly developed with France - Photo: gov.uk

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Land Canada puts hunt for new Ranger rifle in Colt’s hands Oliver Austin

anada’s Department of

National Defence (DND) has issued an RFP to Colt Canada to solicit its latest Canadian Ranger Rifle design. The request, released on 2 September, will see two contracts awarded to Colt Canada under the Munitions Supply Programme for the production of new rifles that will replace the Canadian Ranger’s existing .303 Lee Enfield rifles.

Colt will provide the Canadian Rangers (pictured here in Nanavut) with its first new trusty firearm in decades. Photo: US Mission Canada

The outgoing rifle was itself a redesign of the Lee-Metford rifle, resulting in a bolt-action, magazine-fed, repeater first seen in service with British and Commonwealth forces over a century ago. The modern Canadian Lee Enfields “remain excellent” according to the DND, but having first been supplied to the Rangers in 1947, they are now “less readily available” as the original production plant (Toronto’s Long Branch Arsenal) no longer exists and civilian rifle-makers are rare. It is also expected that a new design will offer a number of benefits for the future operational environment. The Rangers rely on their rifles at all times, particularly as a tool to hunt and protect themselves in remote areas of the Canadian wilderness. As such, programme managers have highlighted the need for a specialised, robust design that can perform well in

below-freezing temperatures. The value of the contracts will be then informed upon selection. The first contract tasks the company with managing the design competition and with supplying 125 rifles – including spare parts and accessories – for testing during the Canadian Armed Forces’ annual Operation Nanook training exercise, scheduled for summer 2015. The second contract would follow tests and see the company manufacturing more than 6,500 selected rifles for induction into the Rangers’ service by the end of 2019. Some voices have questioned the contract arrangement, especially in the need for a third party supplier outside of Colt Canada itself given the fact that off-the-shelf military supplier procurement tends to come in the form of high-end sniper rifles.

Portugal to receive additional 8x8 armoured vehicles Victor M.S. Barreira

he Portuguese Army is to

receive further 22 Pandur II wheeled armoured vehicles for its Intervention Brigade (BrigInt). This decision comes after the country’s Ministry of National Defence signed an agreement on September 26 with the vehicle’s producer General Dynamics European Land Systems (GDELS) that put an end to the arbitrary process initiated in October 2012. Portugal terminated the contract in October 2012 after 166 vehicles were inducted as GDELS failed to meet the delivery schedules of next 85 vehicles and other contractual obligations. The agreement oversees the supply at no cost for Portugal of eight infantry fighting vehicles; six communications vehicles; five anti-tank vehicles; two repair and recovery vehicles; and one ambulance.

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In February 2005 Portugal awarded GDELS a contract worth EUR344.2m ($437m) for 260 8x8 vehicles, comprising 240 for the army and 20 amphibious units for the Navy’s Marine Corps. A second contract worth EUR20.3m ($26m) was placed for annual deliveries of spares; and a third for the fulfilment of EUR516.3m ($655m) in offsets by GDELS. Only 166 vehicles were delivered by GDELS and its Portuguese partner Fabrequipa to the Army comprising 105 personnel carriers with 12.7mm weapon mount; seven personnel carriers with Protector M151 remote weapon station; 22 infantry fighting vehicles armed with a 30mm automatic cannon; 16 command posts; seven ambulances; five repair and recovery vehicles; and four battlefield surveillance vehicles.

Six Pandur II vehicles comprising five personnel carriers and one repair and recovery vehicle are currently deployed by the Portuguese military contingent serving in Kosovo as part of KFOR NATO’s multinational peacekeeping mission.

Portugal has so far inducted 166 Pandur II vehicles. Photo: Victor M.S. Barreira

Land Nicaragua exhibits new Russian equipment Julio Montes

s part of its 35th anniversary

celebrations, the Nicaraguan Army paraded a BMP-1 Squadron. It was the first time these kinds of vehicles have been observed in Nicaragua, and the first time they have been listed as part of its inventory. It is believed that a full battalion (31 APCs) are operational as part of the Light Mechanised Brigade. The Army also paraded several PT-76, which were previously listed as part of the inventory, but believed to be grounded for lack of spare parts. Nicaragua and Russia signed military cooperation agreements which appear to be paying of the Central American nation. It has been noted the presence of Russian vessels in Nicaraguan ports, and also in anti-drug operations along Nicaraguan forces in maritime areas granted by the International

Court to Nicaragua, and previously possessed by Colombia. Nicaragua has acknowledged a Russian military assistance of $15m, which includes a new antiaircraft artillery unit, and an advanced simulator. The Army has activated the Tte. Cnel. Art. DEM Aldo Mauricio Herrera Neira, AAA Group equipped with upgraded ZU23-2, likely to be Rosoboronexport’s ZU-23/ZOM1 version. It is believed that work has also been carried out on the P-18 Spoon Rest D (1RL131 Terek) radar. There is also a new and advanced helicopter and paratrooper simulator installation, and the complex has been named Cnel. Manuel Antonio López García. The Navy has also been boosted and a new synchrolift and dry dock has been built at Potosi Naval District in the Pacific, along with 12 naval control posts, to include one

at the Cosigüina Point. Forces in the Caribbean have been reinforced with three Boston Whalers (BW370) donated by the US, along with complete new Naval Command and Control installations at El Bluff. There are reports that Russia will be supplying a handful of Mig-29s, as well as missile and patrol boats to the Nicaraguan forces. Of course, if indeed the transaction has taken place, the delivery of such advanced equipment should take some time to materialise since a logistical pipeline has to be developed, along with appropriate training, and something that could take up to two years.

Lithuanian IFV circumvents public procurement rules Oliver Austin

he Lithuanian Ministry

of National Defence (MOD) has been granted an exemption from wider public procurement procedures t enable its acquisition of infantry fighting vehicles (IFVs).

The Lithuanian MOD is implementing its National Defence System Development Programme 2014-2023, including the replacement of its M113 fleet. Photo: Army Recognition

Local information services reported on the government’s decision on August 20th. Public procurement in Lithuania is governed by the Law on Public Procurement of August 1996, which was amended in 2011 in encompass Lithuania’s obligations under the European Union defence procurement directive, 2009/81/EC. The nation is aiming to acquire a new fleet of vehicles to replace the existing 300 ageing M113 tracked armoured personnel carriers, following confirmation of the procurement in July of this year. Like Latvia, Lithuania has pledged to increase defence spending to NATO’s 2 percent target by 2020, representing an increase of over 100 percent each. It was announced at the NATO Wales

Summit of September 2014 that Latvia has purchased 123 surplus combat reconnaissance armoured vehicles from the UK in a $64.7m (£39.4m) deal, following the signing of a letter of intent earlier in the year. Both nations form part of the newly ordered Joint Expeditionary Force, alongside Estonia, which is beginning a re-evaluated defence development plan that includes the procurement of new IFVs for its Scouts battalion, while considering other join and bilateral purchases.

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Land Norway inducts new variant of CV90 AFV Victor M.S. Barreira

AE Systems Hägglunds

announced in mid-September it has delivered the first CV90 STING armoured combat engineering vehicle to the Norwegian Defence Logistics Organisation Land Systems (or Forsvarets LogistikkOrganisasjon, FLO). This specific variant for the Royal Norwegian Army (Den Norske Hær) was developed in cooperation with local firm Ritek AS. It includes a rear mounted remote operated arm to investigate IEDs, Kongsberg Protech Systems’ Protector remote weapon station, SPCR (Self Protection Combat Roller) mine roller system, SCD (Surface Clearance Device) mine plough and other mission equipment. The c.£500m contract awarded on 21 June 2012 by the FLO includes upgrading all existing 103 CV9030N vehicles, and the production of 41 new chassis, bringing all up to a common standard. The first preseries upgraded CV9030N infantry

fighting vehicles were delivered in February 2014. The contract includes the delivery of five variants, including: 74 SPV (stormpanservogner) infantry fighting vehicles featuring an improved turret and remote weapon station; 21 OPV (oppklaringsvogner) reconnaissance vehicles incorporating the 30mm turret, a remote weapon station and mast mounted Vingtaqs II long range, target acquisition and surveillance system of Vinghøg; 15 STRILED (stridsledelsesvogner) command post vehicles; 16 STING engineering vehicles; 16 MULTIVOGN multi-role vehicles designed to undertake functions such as 81mm mortar carrier and logistics and ambulance; and two Skolevogn driver training vehicles. The multi-role vehicles are designed to undertake different functions, including 81mm mortar carrier and logistics roles.

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

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110 vehicles including the infantry fighting, reconnaissance and command versions all come armed with the 30mm turret, a remote weapon station and Saab´s UTAAS sight and fire-control system. Except for the driver training vehicles, all other variants are fitted with remote weapon stations. The vehicle will go the Royal Norwegian Army in August 2015 and delivery will be finalised during 2017. The vehicles feature improvised explosive device (IED) protection and a modular ballistic protection system. It also features a digital electronic architecture; SOTAS intercom system of Thales Norway; electro-optical sights of Saab; cameras for 360 degree situational awareness; crew stations; and rubber tracks by Soucy International.

Land Turkish firm set to develop powerpack for Altay MBT Victor M.S. Barreira

hrough the Turkish

Defense Industry Executive Committee (SSIK or Savunma Sanayii İcra Komitesi), the Turkish top procurement body (SSM or Savunma Sanayii Müsteşarlığı) has selected the local firm Türk Motor Sanayi ve Ticaret AŞ (TÜMOSAN) to design and develop diesel engine and automatic transmission systems for the country’s Altay main battle tank (MBT). TÜMOSAN, part of the Albayrak Grubu conglomerate, is based in Istanbul and owns a factory in Konya where tractors and 3- and 4-cylinder diesel engines are produced for agriculture, marine and industrial applications. Negotiations with Japan’s Mitsubishi Heavy Industries for joint development and production of an engine for the Altay failed earlier this year. The Altay’s initial drivetrain consisted of a MTU Friedrichshafen MT 883 Ka 501 diesel engine with 1,500 hp and

RENK Aktiengesellschaft HSWL 295TM automatic transmission. The vehicle’s auxiliary power unit (APU) will be produced by the local company Tepaş Elektrik ve Mekanik ev Cihazlari Sanayi ve Ticaret AŞ. Otokar Otomotiv ve Savunma Sanayi AŞ, part of the Koç conglomerate, has so far produced four prototypes of the Altay vehicle as part of a design/development, prototype production and qualification contract worth $500 million awarded by the SSM in March 2007. Altay was developed with assistance from Hyundai Rotem of South Korea. A first batch of battle tanks is soon expected to be procured with serial deliveries expected to begin in 2016. The tracked design is to progressively replace Leopard 1/2, M60 and M48 battle tanks currently in service with the Turkish Land Forces Command (Türk Kara Kuvvetleri Komutanlığı). Other local companies such

as Makina ve Kimya Endüstrisi Kurumu (MKEK), Aselsan Elektronik Sanayi ve Ticaret, Roketsan and Savunma Teknolojileri Mühendislik ve Ticaret AŞ (STM) are involved in the development of Altay.

Turkey is expected to induct Altay MBTs by 2016. Photo: Otokar

Italy bolsters armoured vehicle fleet Eugenio Po

IO, the Iveco DV and OTO

Melara consortium, has received a contract to start the second phase of the acquisition of 381 new VBM (Veicolo Blidato Medio, Medium Armoured Vehicle) FRECCIA 8x8 wheeled Infantry Fighting Vehicles (IFVs) and other specialised variants. Over EUR260m were allocated for the programme by Minister of Defence and Minister of Economical Development (MiSE, Ministero dello Sviluppo Economico). In parallel with the conclusion of the deliveries of the last VBM FRECCIAs of the first series (part of a multi-year, multibatch program of a total of 249 vehicles) a new acquisition project is stating. The overall value of this new program is estimated in 2.65

billion euros, comprising around 350 million euros for logistic support. The new project is bigger than the previous one asking for 261 VBM FRECCIA (mostly IFVs, but also anti-tank, mortar carrier and command post) to equip a second Medium Brigade and for 120 VBM FRECCIA Esploranti (Explorer) in 2 versions (60 in a version equipped with radar and micro-UAV and 60 in a variant with anti-tank missiles and UGV) for the Recce Cavalry units. Cavalry units will also be equipped with the new CENTAURO 2 armoured 8x8 vehicle, part of the same family of the VBM FRECCIA. CIO is working on the first prototype of this new vehicle,

the completion of it is expected next March. CENTAURO 2 is a new vehicle equipped with a new turret with a 120/45mm smooth bore gun coupled with a new generation Fire Control System, Command and Control and Communication set designed by SELEX ES. CENTAURO 2 mobility is increased thanks to a new 720 HP diesel power-pack, and a new armour suite and new design solution guarantee extremely high levels of protection, especially against mines and IEDs. First deliveries of this new vehicle are estimated for 2017 while the Army’s overall requirement is for 140 CENTAURO 2.

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Land Canada spends $9.6m on military robots Richard de Silva

.S. robotics firm iRobot

Corporation, one of the world’s leading providers of defence and security UGVs, has been awarded a contract by the Canadian Department of National Defence at an initial value of $9.6 m. The deal, which is spread out over several years, will see the delivery of a batch of 20 iRobot 510 PackBots enter service by April 2015. The robot is listed as “one of the most successful battle-tested robots in the world”, providing operators with a modular, expandable and rugged option for bomb disposal. It has long been a popular device for the U.S. military for surveillance and reconnaissance in areas potentially contaminated by chemical, biological, radiological and nuclear (CBRN) fallout,

particularly when it comes to IED clearance. The 24lb device can access confined spaces and broad sensing capabilities, and features enhanced mobility through the addition of rear flippers. More than 5,000 of the company’s robots have been delivered to civil and military forces around the world, the first of which saw action in Afghanistan and Iraq towards the beginning of both campaigns. In April, iRobot secured a $59.2m contract from the U.S. (DoD) to supply a number of Man Transportable Robotic System (MTRS) production systems by April 2015, along with spares, training and management provisions. Like PackBot, MTRS is also used by EOD technicians.

As explained by iRobot, “The PackBot integrates five primary sensors to reliably detect, alert and report on chemical warfare agents, toxic industrial chemicals, volatile gases, explosives and radiation with the goal of keeping personnel safe by allowing them to conduct dangerous missions from safe standoff distances.” iRobot reported its Q2 revenue at $139.8 m, while net income for the quarter rose to $8.5 m over $8.3 m in the previous year. Revenue for its defence and security branch was down for the year-on-year quarter by 40 per cent at $5.1m (from $12.5m in 2013).

The iRobot 510 PackBot has previously been proving its worth to IED clearance missions for the Spanish Army. Photo: Outisnn

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Sea Indian Navy moves full steam ahead with indigenisation R.S. Vasan

he past quarter has

witnessed some remarkable progress in the indigenous efforts of India. The Defence Public Sector Undertakings (DPSUs) seem to have delivered on some big orders and there are a total of 41 orders now for new ships. INS Kolkatta, commissioned on 16 August 2014, is the largest warship that has been built to date. Aside to looking impressive, the vessel will carry a big punch once all weapons and sensor systems are fully fitted. The commissioning of INS Kamorta (an anti-submarine warfare corvette) a week later opens up new avenues in ASW warfare in the tricky waters of the Indian Ocean. The indigenous content in the case of Kamorta is claimed as 90 percent, which demonstrates the coming of age of the warship building industry within the country. However, there are still issues of cost and time over

runs in some of the projects which need to be addressed. The commissioning of INS Sumitra on an advanced Offshore Patrol Vessel in Chennai on the Eastern Seaboard on 4 September augments the surveillance capability in the eastern waters. The Naval OPV is the last of the orders completed by Goa Ship Yard Limited (another DPSU on west coast) which built the ship at a fixed cost and on time. That the ship was accepted by the commissioning crew without any guarantee defects and sailed to the East Coast for commissioning and basing in Chennai augurs well for the industry and the navy. While all looks well on the surface, concerns about the underwater arm of the Indian Navy persist, as its strength has been depleted from the delays in the induction of the French-designed Scorpene submarines. The situation for

shipborne helicopters is also cause for anxiety with delays plaguing acquisition processes. The Navy admits that there is reasonable success in the float and move category, but the major deficiency remains in the realm of weapons and sensors which continue to be sourced from foreign vendors. The Government recently revised the FDI up to 49 percent. This change by the Modi Government appears to have restored the confidence of investors both in the domestic and foreign sectors. With the conducive climate for investment, there are hopes that the aspirations of India to be a world class navy would be met by both indigenous efforts and foreign collaboration in key technology regimes.

The INS Kamorta is set to boost ASW operations in the Indian Ocean

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Sea RNZN’s frigates will receive Smart-S Mk2 surveillance radar Victor M.S. Barreira

hales Nederland was

awarded a contract by Lockheed Martin Canada for the delivery of two Smart-S Mk2 medium-to-long range naval surveillance 3D radar systems. These radars are to be installed on the two ANZAC Class MEKO200 frigates HMNZS “Te Kaha” (F77) and HMNZS “Te Mana” (F111) and the Royal New Zealand Navy (RNZN), as part of the ship’s modernisation programme, or ANZAC FSU project. The first system is to be delivered early 2016, the second one early in 2017. The radar will support the ship’s next MBDA Sea Ceptor air defence system that deploys the CAMM (Common Anti-air Modular Missile) multi-mission missile. Smart-S Mk2 multibeam radar operates in S-band and is optimised

for surveillance up to 250km with 70 degree elevation coverage, target designation and air and surface target tracking in littoral environments. It offers two main modes, a helicopter/UAS guidance capability and three surface fire control channels. Smart-S Mk 2 radar has been previously purchased by Canada, Colombia, Denmark, France, Morocco, Oman, Turkey and Venezuela. The frigates are undergoing a mid-life refurbishment programme with the aim to extend their operational life. Improvements include upgrades to the frigate platform and self-defence systems including installing new engines; a combat management system; countermeasure systems; infra-

Smart-S Mk2 radar here mounted on F512 TCG “Büyükada” corvette of Turkish Naval Forces Command. Photo: Cem Devrim Yaylalı

red search and track systems; an electronic warfare suite; a surfaceto-air missile system; an air search radar; plus updates to integrated platform management system and an upgrade of the Phalanx close-in weapons system.

French Navy E-2C Hawkeye Makeover Thomas Withington

orthrop Grumman

announced on 22 August 2014 that it would be upgrading all four of the Aéronavale (French Naval Aviation) E-2C Hawkeye Airborne Early Warning (AEW) aircraft built by the same company with new Electronic Support Measures (ESMs).

The French Navy’s 4 Flotille operates four Northrop Grumman E-2C Hawkeyes from Lann-Bihoué.

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All four of the E-2Cs are deployed with the French Navy’s 4 Flotille (Fouth Flotilla) unit based at the Base Aéronavale de Lann Bihoué (Lann Bihoué naval base) in Brittany on the French west coast. The 4 Flotille’s E-2Cs are routinely deployed onboard the Marine Nationale (French Navy) Charles de Gaulle solitary aircraft carrier from which they perform air battle management, early warning and air and sea surveillance. Northrop Grumman will supply five Lockheed Martin AN/ALQ-217 ESMs to outfit the four aircraft (four systems plus one spare), under the auspices of a Foreign Military Sale by the United States. All five systems are expected to be delivered by 2018. The French aircraft were originally delivered with the Northrop Grumman AN/ALR-

73 ESM installed, however, the addition of the AN/ALQ-217 will bring the French aircraft to the same equipment standard of the E-2C aircraft operated by the United States Navy, and hence a higher level of interoperability between the French and American aircraft. The AN/ALQ-217 provides 360 degree detection and identification of Radio Frequency (RF) emissions in the 0.5-20 gigahertz (GHz) frequency range. This allows the ESM to detect nearly all current naval surveillance radars, plus fighter aircraft radars and also millimetre wave radars in the Kuband (13.4-14/15.7-17.7GHz) which are used by some designs of antiship missile.

Sea U.S. Navy’s carrier-launched UAS plans delayed

n RFP anticipated by the

U.S. DoD for an Unmanned Carrier Launched Airborne Surveillance and Strike (UClass) platform has been put on hold. The issue was due in September but officials from Naval Air Systems Command (NAVAIR) agreed to put the brakes on after fresh concerns about cost projections in the wake of other ‘runaway’ defence programmes.

The X-47B UCAS demonstrator has continued to complete successful catapult launches, arrestments, and touch-and-go landings throughout 2014. Photo: Northrop Grumman

Joseph Carpenter

UClass has been in the works since 2006, envisioned as being an armed ISR asset designed for longendurance missions, and initially giving rise to the development of Northrop Grumman’s X-47B UCAS-Demonstrator (UCAS-D) that continues to undergo testing but has been criticised as being too costly. The latest developments on the programme have involved the installation of control station software at a laboratory at Patuxent Rivel Naval air station, understood to provide the baseline for all future UClass control software. The lab tests of this technology will help to inform developers of the capability and usability of the platform in the run up to flight tests. The aircraft is likely to cost over $1bn over the next two years, which is forcing the Pentagon to review its ISR portfolio budget and mitigate the risk of overruns before it

approaches the market. To date, the Navy is believed to be assessing two possible routes for the programmes, one which is a lightly armed surveillance aircraft and another which is a heavily armed stealth platform. A series of NAVAIR RFP documents have been provided to Northrop Grumman, Boeing, Lockheed Martin and General Atomics, but the content of these is not public and it is not known whether these are necessarily related.

New ideas for radar from SELEX ES: The Italian way to Dual Band Radar Eugenio Po

ELEX ES is working on a new radar suite for the Italian Navy’s next generation of surface ships. This suite, called Dual Band Radar (DBR), is being explored for the new PPA (Pattugliatori Polivalenti d’Altura, Offshore Patrol Vessel), a class of big multi propose patrol ship/frigates for the Italian Navy. These units, to be built in two different versions (‘Light’ for patrol purposes and ‘Full Combat’ for heavy duty wartime operations) will replace several classes of ageing frigates, corvettes and OPVs. The programme for the design and construction of the first 6 PPAs is already started while the Navy’s overall requirement is variable between 8 and 14 PPAs. The Dual Band Radar being considered by

SELEX ES is a combination of a C band sensor with an X band sensor. Both will have 4 fixed faces active array antennas (AESA, Active Electronically Scanned Array) and will be multi-functional radars. The C band radar will be an evolution of the current MFRA rotating C band multi-functional AESA sensor (onboard FREMM class frigates) while the X band radar will be an entirely new design employing technologies coming from SELEX ES’s portfolio of X-band sensors for airborne applications. According to preliminary studies, the combination of these 2 radars into a single architecture will give enormous advantages in terms of performances, even in ATBM (Anti Tactical Ballistic

Missile) mode. In parallel, SELEX ES is also studying an additional L band AESA radar. It will be an evolution of the RAN-40L 3D sensor installed on-board the CAVOUR aircraft carrier and retrofitted DE LA PENNE class destroyers. The new L band AESA radar in mind of SELEX ES engineers will be a long range sensor with high performances against ballistic missiles. This radar could be the main sensor for the new LHD for the Italian Navy and could replace RAN-40L on CAVOUR carrier and the Thales S-1850L L-band radar on the 2 Horizon/ Orizzonte class AA destroyers.

Defence Industry Bulletin :: 13

Sea Orizzonte Sistemi Navali delivers new LPD to the Algerian Navy Eugenio Po

rizzonte Sistemi Navali

(OSN), a joint venture between Fincantieri (51 percent) and SELEX ES (49 percent), has delivered the new KALAAT BENI-ABBES amphibious vessel (LPD – Landing Personnel Dock) to the Algerian Navy. The delivery ceremony for this ship, known also as Bâtiment de Débarquement et de Soutien Logistique (BDSL), was held at Fincantieri’s Muggiano shipyard in early September. The KALAAT BENI-ABBES represents a new generation of multi purpose amphibious platform that combines landing assault capabilities with a high level of command and control capabilities and with a powerful set of weapons and sensors. The ship is 143 metres long, has a 21.5 metre beam and has a full load displacement of about 8,800 tonnes. With two 6,000 kW-rated Wärtsila 12V32 diesel engines driving 2 controllable pitch propellers, the ship can reach speeds of over 20 knots, and carry more than 430 soldiers, 12 flight service specialists and 152 crew, for a total of around 600 people. It has a full-length flight deck, with 2 helicopter landing spots, for medium/heavy machines. The vessel is an evolution of the SAN GIUSTO, an amphibious class of ships in service in the Italian Navy. One of the most important features of this vessel is an internal dock, floodable, fit for a 20 meters landings craft medium (LCM). The KALAAT BENI-ABBES carries three LCM: one into the flooding dock and a couple attached to the ship’s deck.

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Photo: BDSL/Algerian Navy

The ship’s Combat Management System is the SELEX ES ATHENA-C, an export version of the CMS onboard FREMM frigates (BERGAMINI-class). Even the sensor suite is derived from FREMM’s suite because employ a SELEX ES MFRA (Multi Functional Radar, Acive) AESA (Active Electronically Scanned Array) multifunctional radar, a SELEX ES SIR phased array IFF and a SELEX ES NA-25 fire control radar. Electronic Warfare system is provided by ETL Elettronica while integrate platform management system is designed and produced by Seastema (a Fincantieri company). The KALAAT BENI-ABBES is heavy armed since the weapons includes a single OTO Melara 76/62mm SUPER RAPID gun, two 25mm OTO Melara KBA guns and

an 16 cells VLS (Vertical Launching System) SYLER A50 for ASTER 15/30 surface to air missiles. The training activities are carried out by Italian Navy in La Spezia and Taranto as a subcontractor of OSN. The operational training and qualification of the KALAAT BENIABBES is planned to be finished in the first quarter of 2015.

Sea Australia ‘leaning towards’ Japanese Soryu submarine purchase Richard de Silva

ontroversy erupted in

August after a touring group of 16 Japanese submarine engineers and defence specialists apparently visited Adelaide-based shipbuilding company ASC without consulting resident parties. As the submarines may employ Japanese technology, fears that manufacturing could be sent overseas have shadowed press attention. Some local industry representatives claimed to be unaware of the visit and expressed indignation over its “secrecy”, but the Federal Government responded that the visit was merely “business as usual”, suggesting that not all collaborative business or political visits are deemed necessary to communicate with local governments. Australia recently signed a new defence science and technology agreement with Japan to mutually enhance systems. A decision over its Collins-class replacement will be announced in early 2015 at the latest but rumours have been building that Australia is now

moving towards buying up to 12 Japanese Soryu submarines in what would be a significant shift in policy and will raise serious questions about local employment and economic management. It is still possible that foreign submarines could be built and maintained in Australia in order to keep the shipbuilding industry alive at the state-owned ASC yard near Adelaide. Should the deal go ahead, Japan and Australia would see an important strengthening of ties that is likely to upset Beijing and could lead to economic retaliation. The situation coincides with the Abbott government’s plans to release its first defence white paper. The cost of replacing the six Collins-class submarines, which will begin in the mid-2020s, is estimated to be up to US$32bn. Up to 10 Soryu-class boats could be bought for submarines for closer to $20bn, while Japan Defence Forces are currently awaiting the delivery of up to four more to bring the fleet to 10. The Soryu has a

range of 6,100 nautical miles, a submerged speed of 20 kn and can stay submerged for up to two weeks at a time. In what is seen as another point of contention, Japan has since decided to switch the power method of the remaining Soryu vessels from air-independent propulsion (AIP) to Lithium-ion battery. The Maritime Self-Defense Force (MSDF) argues that a Liion system offers better power, performance and maintenance than lead-acid batteries, but critics claim the role of Li-ion in recent fires aboard the Boeing 787 Dreamliner raises serious concerns over their safety. The announcement has not altered Australia’s position of interest in pursuing Soryu technology or the possibility of procuring entire vessels outright.

Soryu-class Hakuryu (SS-503) on a visit to Guam in 2013. Photo: U.S. Navy

Defence Industry Bulletin :: 15

Air AGM-88 Scores Success Thomas Withington

he United States Air Force

(USAF) successfully testlaunched an upgraded version of Raytheon’s AGM-88 High Speed Anti-Radiation (HARM) missile on 22 August 2014. The missile was launched by a USAF Lockheed Martin F-16C/D Fighting Falcon multi-role combat aircraft scoring a direct hit. The test was performed using Raytheon’s HARM Control Section Modification (HCSM) which is an upgrade to the existing AGM-88 missile. The modification rolls out a Global Positioning System (GPS) and Inertial Measurement Unit (IMU) onto the weapon, while also modifying its digital flight computer. The addition of the GPS and IMU strengthens the AGM-88’s target discrimination capabilities beyond

its existing RF (Radio Frequency) seeker the latter of which is designed to detect and then lock onto hostile radar emissions so as to home in on the radar causing its destruction. However, anti-radiation missiles can be vulnerable to what is termed the ‘switch off’ tactic, by which radar operators deactivate their radar when they believe that they are being targeted by a HARM to cause the missile to break lock. The GPS and IMU addition will allow the missile to determine the radar’s location once the hostile RF signals are detected. This renders the shut down technique null and void as the missile will still ‘remember’ where the radar is located. Moreover, the addition of GPS and an IMU allows the radar to only operate within a pre-defined area to

prevent the weapon hitting objects beyond this: In April 1999, an AGM88 launched during the Operation Allied Force air campaign over Serbia and Kosovo accidentally hit a house in Sofia, Bulgaria. During the test of the HCSMequipped AGM-88 in late August 2014, the missile successfully hit an RF emitter positioned outside a pre-determined exclusion zone which contained a decoy transmitter, thus demonstrating its ability to discriminate between intended and unintended targets. HCSM-equipped AGM-88s will be re-designated AGM-88F, and are expected to enter USAF service by 2016.

Ecuador’s tender for procurement of a new air defence network Iñigo Guevara

he Ecuadorian Defence

Ministry will invest $112m to procure a new air defence surveillance network for the Ecuadoran Air Force’s Air Defence Command. The new system will comprise 3D long-range radars and a command and control infrastructure. The Ecuadorian MoD has invited Indra from Spain, Thales from France and Selex from Italy to participate in a closed tender process of what it calls the Sistema de Vigilancia y Control del Espacio Aéreo (Air Space Surveillance and Control System). The new radars will replace four Chinese radars, which failed to work. Ecuador had opted to procure Chinese radars and ordered two CETC YLC-2V long-range surveillance and two YLC-18 mobile medium-range low-altitude 3D

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gap filler radars, signing a contract in July 2009 worth $62m. That procurement had been part of a 2008 emergency buy ordered after the March 2008 Colombian attack on a FARC camp located inside Ecuador. The attack highlighted Ecuador’s lack of air and land surveillance capabilities, both to prevent a Colombian Air Force (FAC) incursion as well as the establishment of a FARC camp inside its territory. The other two components included 24 EMBRAER EMB-314 Super Tucano light fighters from Brazil and 12 Denel Cheetah fighters from South Africa. Delivery of the CETC radars took place in 2010 but its assembly was delayed. The radars failed to function or communicate with the FAE’s existing command, control, and communications network, as was specified in the contract.

The MoD declared the contract unfulfilled in April 2013 and was reimbursed the $36m it had expended, plus its $3m guarantee. Delivery of the radars is expected 18 months alter contract signature, which is expected to take place in late 2014. Indra is thought to have the leading edge for the FAE contract as it finished deliveries of a new air traffic control system to Ecuador’s Civil Aviation Authority (DGAC) in 2013, allowing it to expand civilian radar coverage from 30 percent to 90 percent. Indra’s MSSR mode-S contract, however, may prove a weakness, as Ecuadorian media have criticised the government’s decision to select a single vendor for all of its radar needs.

Air Lockheed Martin and Boeing demonstrate high energy laser concepts Joseph Carpenter

ockheed Martin has been

working alongside the U.S. Air Force Research Laboratory (AFRL) and the University of Notre Dame to successfully demonstrate the airworthiness of a new beam control turret under development by the AFRL and the Defense Advanced Research Projects Agency (DARPA). The objective of the research is to provide 360-degree coverage for future high-energy laser weapons operating on military aircraft. A test aircraft was equipped with the Aero-adaptive Aero-optic Beam Control (ABC) turret and took part in eight validation flights. It is designed to allow ABC turret system is designed to allow the integration of lasers intended to engage enemy aircraft and missiles from all sides of the aircraft. The companyâ&#x20AC;&#x2122;s flow control and optical compensation technologies counteract the effects of turbulence

caused by the protrusion of a turret from an aircraftâ&#x20AC;&#x2122;s fuselage. All of the turret components met USAF and Federal Aviation Administration airworthiness requirements. Lockheed Martin has been developing and trialling highenergy laser capabilities for more than 30 years but it is only recently that the technology is believed to have matured to the point of widespread procurement consideration. In most cases, directed energy technologies are being explored to augment existing kinetic strike weapons, rather than replace them, and could provide significant cost savings given that the only major operational cost will lie in fuelling the system. Meanwhile, Boeing has successfully demonstrated the effectiveness of the high-energy laser mobile demonstrator (HEL MD) in maritime conditions during

a testing at Eglin Air Force Base in Florida. The company collaborated with the U.S. Army to test the performance of a HEL MD using a 10kW high-energy laser installed on an Oshkosh military vehicle, showing that it can successfully engage more than 150 aerial targets, including UAVs and 60mm mortars, even within adverse weather conditions. The team plans to continue the study by installing a 50kW or 60kW laser on the HEL MD to demonstrate C-RAM (counterrocket, artillery and mortar) and counter-UAV capability. Subsequent tests plan to move up to 100kW, as well as modifying the system to increase range and reaction time.

The S-70i Black Hawk medium transport/utility helicopter is in the running for the Polish contract. Photo: Sikorsky

Defence Industry Bulletin :: 17

Air U.S. Air Force issues rocket engine RFI Iñigo Guevara

n August, the US Air Force

posted an RFI for information believed to be in prospect of an official replacement to the Russianmade RD-180 rocket engine, currently in use by the United Launch Alliance in its Atlas V launch vehicle. The request sought “booster propulsion and/or launch system materiel options that could deliver cost-effective, commercially-viable solutions for current and future National Security Space (NSS) launch requirements.” According to the Air Force Space Command (AFSPC), developers are considering an acquisition strategy to stimulate the commercial development of booster propulsion systems and/or launch systems for Evolved Expendable Launch Vehicle (EELV)-class spacelift applications. The Air Force has relied upon foreign sources for booster propulsion systems in the past, including the Russian government during the ‘warmer’ relationship between the two nations in the

late 1990s. With the Kremlin threatening to cut off the Pentagon in retaliation to sanctions imposed over the conflict in Ukraine, finding alternative technology is an imperative. The RFI in question suggests that industry outlines whether new technology would be based on the RD-180s or an entirely new design. In June, the former head of the Air Force’s Space and Missile Systems Center (SMC) expressed a desire for a new engine programme to create new commercial opportunities beyond military use, echoed by the RFI which offers greater credence to solutions that can increase market competitiveness. The deadline for industry responses was 19 September, while an industry day to discuss the prospects took place one week after.

The ATLAS V will be launching until 2020. Photo: NASA

Honduras seeks to restore air force capabilities Iñigo Guevara

he Honduran Air Force

(FAH) requires a major overhaul if it is to become a significant player in the country’s future. The FAH was Central America’s most capable air force during the mid to late 1980s having received 12 Northrop F-5E/F Tiger II tactical fighters ,which added to multiple squadrons operating the survivors of a subsonic fleet of 21 Dassault Super Mystere B2 and 17 Cessna A-37B fighter-bombers; 4 CASA C-101 Aviojet advanced trainers and 12 EMBRAER EMB-312 Tucano armed trainers. Plus five C-130 Hercules transports and ten Bell 412 helicopters. Since the mid 90s, its capabilities have deteriorated significantly and currently can only operate a handful of aircraft and

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helicopters. President Juan Orlando Hernandez, who assumed office in January 2014, has vowed to restore the FAH as a capable force but that will be a challenge for one of the most impoverished countries in the western hemisphere. The availability of funding is now possible thanks to the establishment of a Special Security Tax in May 2012. The initial priorities has been procurement of radars from Israel in a deal worth HLN 528m ($25m) and restoring eight helicopters to operational condition, for which HNL 338m ($16m) have been approved. The FAH would like to refurbish its Northrop F-5E/F and Cessna A-37B fighters, however cost is prohibitive and US policy is not favourable. The next point on its list

of priorities is restoring its EMB312 Tucano fleet which has been reduced to nine airframes. The FAH reports it is studying its options to modernise its remaining fleet and add a further three second-hand examples from the Brazilian Air Force as well as four new EMB-314 Super Tucano light fighters. Besides EMBRAER, Colombia’s Industrial Aerospace Corporation (CIAC) is capable of performing a Tucano upgrade. CIAC was recently certified by EMBRAER to perform the work and revenue would count towards Brazil’s offset agreement for the $234m sale of 25 Super Tucanos to Colombia back in 2006.

Air India again extends foreign bid deadline for Avro Joseph Carpenter

he Indian Air Force has been forced to prolong its deadline for responses to a $3.5bn RFP to replace the Avro light transport fixed-wing after foreign aircraft manufacturers submitted no bids within the required window. The postponement marks the fourth extension of the programme in the past 18 months. The last deadline was due on 28 August, but with just two foreign OEMs reportedly signalling any interest on the final day, the window for submissions has now been extended to October. Up to now, India’s military aviation programmes have been given to state-owned Hindustan Aeronautics Ltd (HAL), but in response to consistent delays, HAL is no longer being allowed first option on many of the country’s new projects. Instead, India’s private firms will compete for a partnership with a foreign manufacturer to produce 16 aircraft abroad and the rest of the fleet in India.

Before the extension was announced, the IAF had already shortlisted five foreign options for the 60 plane contract – including European, Russian and Ukrainian manufacturers – having previously issued the tender to eight companies in May 2012. The Defense Acquisition Council (DAC) approved a ‘buy and make’ proposal that demanded the selection of a private sector Indian partner. One of the reasons that few have taken up the offer is in the lack of infrastructure available for the private industry to take on the challenge of a large-scale production line. Others have cited the Ukraine conflict as upsetting the apple cart, with companies in that region requesting more time to formulate a pitch. In addition, no guidelines have been offered by the Indian MOD on how the consortium will be selected, which could cause legal confusion in the long-term. The IAF requires 56 like-for-like replacements to its Hawker Siddley HS 748 Avros, a British model first introduced in the 1960s. The

requirement consists of a twinengine aircraft with a six to eight tonne payload capacity, a cruise speed of 800 kph, and a range of 2,500 km to 2,700 km. Included in the original RFP was the Airbus Military C-295 and the Alenia C-27J Spartan (the two programmes that showed an interest in August), alongside other options from Antonov (AN-148), Saab (340/2000), Ilyushin (IL-114) and Embraer.

India’s light transport aircraft replacement programme is already delayed Photo: forceindia.net

Nigeria to get Russian military helicopters, denied Israeli Chinooks Oliver Austin

ussia has finalised an

agreement with Nigeria on the delivery of a small fleet of Mi171Sh military helicopters to help arm the nation’s efforts against Boko Haram. The contract for a ‘significant number’ of the aircraft was signed in August, according to Sergei Goreslavsky, deputy director general of Rostec. The Mi-171Sh is an export version of the Ulan-Udes Mi8AMTSh and is currently used in a vast number of countries, including the Czech Republic, Croatia, Bangladesh, Peru and Ghana. The Mi-17 was first produced in the late 1970s, and recent modifications have included improved auxiliary power units, loading ramps and Kevlar armor plates around the

cockpit area and engines. The Mi-171Sh can carry up to 4 tons, transport up to 36 personnel or be used to carry 12 injured on stretchers. It is believed Nigeria will induct 6 or 7 of the aircraft, which are understood to have been in service in the Russian military since 2009. They could be delivered in various configurations, with air defence capability, reconnaissance equipment and missile weaponry. Mozambique has also reportedly expressed an interest in procuring the same type of aircraft from Russia. Meanwhile, the U.S. National Security Council and the White House have apparently blocked a sale of Israeli Chinooks for Nigeria,

possibly over concerns related to alleged human rights infringements undertaken by the Nigerian armed forces. Nigerian officials have protested the assertion, claiming that insurgents are committing atrocities while wearing Nigerian uniform to discredit the state. At time of writing, the dispute was to be addressed during a meeting between President Goodluck Jonathan and President Barack Obama in New York at the 69th Session of the United Nations General Assembly.

Defence Industry Bulletin :: 19

Air Polish attack helicopter programme prepares to assess proposals Richard de Silva

he first week of September

saw the MSPO defence show in Kielce, Poland, become a final opportunity for airframers to present their cases for the emerging tri-service attack helicopter requirement for the Polish Forces. Final submissions were due at the end of the month. 70 of the rotorcraft are said to be needed to replace the army’s Mil Mi-24 ‘Hind’ fleet and other ageing Russian models in the air force in a procurement programme named ‘Kruk’ (Raven). An RFI was released by Warsaw in July, with purchase dates moved forward to 2015 from 2018 in response to the crisis in Ukraine. Ten companies are understood to have responded to the initial proposal, of which one will be chosen before the end of 2014. Although not mentioned in the RFI, rumours indicate that the defence ministry is leaning towards an agile, tandem-pilot attack helicopter rather than a direct swap for the outgoing heavily armed troop transport.

This indication stems from the fact that Airbus Helicopters was explicitly asked by the MOD to bring a Tiger HAD platform – currently in use by France, Australia, Germany and Spain – to the event for inspection. An alternative is the company’s EC725 Caracal (Super Cougar) long-range tactical transport helicopter. Either way, Airbus Group is promoting the possibility of establishing a local base in Poland that can mirror the successes of its other branches in Western Europe, with the Kruk contract incentivising a much shorter timeframe for implementation. Aside to Airbus, two key contenders are already understood to be on the shortlist, both of which have local investment already established. AgustaWestland and Polish subsidiary PZL Swidnik are pushing the AW149, a relatively new platform that only received military certification in July and has not yet signed its first customer. Mieczyslaw Majewski, president of PZL Swidnik, criticised Airbus’s

The S-70i Black Hawk medium transport/utility helicopter is in the running for the Polish contract. Photo: Sikorsky

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promise of job growth as an insignificant offer compared to the thousands of jobs provided by the company’s efforts to date. Meanwhile, Sikorsky is pitching the popular S-70i Black Hawk, also with the support of a Polish subsidiary in the form of PZL Mielec. However, complications may arise given the need for Poland’s naval requirements to possess an ASW capability, only available on the S-70B variant. Elsewhere, Boeing is in line to pitch the equally formidable AH-64E Apache but programme managers are awaiting a more detailed outline as to Poland’s needs and preferences. Turkish Aerospace Industries (TAI) has also confirmed an interest in proposing the T129, based on the AW149, acting as a prime contractor alongside its AgustaWestland/PZL Swidnik partners.

THE BROADER PICTURE India places ‘partial ban’ on future Finmeccanica bids Oliver Austin

ndia has decided not to allow

Finmeccanica to provide new military equipment to the country if the prospect exists for other companies to provide the same equipment. The government will however allow existing contracts with the Italian company to continue to completion in what will come as a great relief to senior directors, employees and shareholders, who had feared a complete ban. Contracts that have been completed but require followthrough service, such as spares and upgrades, will also be honoured. Finmeccanica’s UK-based subsidiary AgustaWestland became embroiled in the 2013 bribery scandal, which saw accusations that senior decision-makers had been paid off to award the $753m contract for the supply of 12 AW101 helicopters, three of which were intended to fulfil VVIP duties for the President and other state officials. That contract was cancelled in January as an investigation began. The company has denied the corruption allegation but has not issued further comment other than to acknowledge the court’s decision.

In addition to the partial ban, Finmeccanica has been fined 80,000 Euros fine regarding the conduct of AgustaWestland SpA and 300,000 Euro – alongside the confiscation of 7.5m Euros – regarding the conduct of AgustaWestland Ltd. Italian prosecutors have charged Finmeccanica’s former chief executive, Giuseppe Orsi, and another company official with conspiracy to bribe Indian officials. They have pleaded not guilty. Other subsidiaries are likely to feel the impact of the dicision. Selex is contracted to supply the 3D Band Air Surveillance Radar for India’s forthcoming aircraft carrier, while Whitehead Alenia Sistemi Subacquel (WASS) is providing Black Shark heavyweight torpedoes to the Indian Navy for its indevelopment Scorpene submarine programme, as well as provisions of A244-S lightweight torpedoes – fitted with a new fire control system and enhanced range, speed, target acquisition and counter measures. It was predicted that these unrelated programmes would prevent a complete blacklisting of the parent company.

The Indian MOD, under former defence minister A K Anthony, blacklisted six companies in 2012 over corruption allegations: Singapore Technologies Kinetics, Israel Military Industries, Rheinmetall Air Defense, Corporation Defense Russia (Corporation Zashchita), and Denel of South Africa. The latest decision may offer a new route to punishing private firms without incapacitating the military’s finances.

Existing contracts for IAF AW101s will be seen to completion – but no more will be issued Photo: Wikimedia

German defence exports to push industry heavyweights abroad? Andrew Elwell

erman Economy Minister

Sigmar Gabriel detailed plans earlier this year that could turn the domestic defence industry on its head. Announcing a policy that could force industry heavyweights to move their production lines abroad, Gabriel plans to tighten rules on German arms exports to “security sensitive” areas such as Saudi Arabia. He wants further consolidation between European defence companies, such as the

expected merger of German armoured vehicle maker KraussMaffei Wegmann with French competitor Nexter. In 2013, German military exports surged by nearly a quarter within a 12 month period. While exports were boosted primarily by countries including Qatar and Saudi Arabia, Gabriel believes there is more German industry could be doing with partners such as the US, UK and other European neighbours to increase exports.

Industry representatives – including Airbus CEO Thomas Enders – have questioned the policy and indicated that it could lead to significant job losses in the sector. Berlin reportedly blocked a contract for MBDA to supply Qatar with its Milan ER anti-tank missile earlier this year.

Defence Industry Bulletin :: 21

The Briefing Room The Dragon, the Bear and the Tiger Georg Mader

How the Chinese and Russian military aerospace industries are viewed in India

t this pinnacle era of fifth-

generation fighter aircraft and their relevant technologies, India’s Hindustan Aeronautics Limited (HAL) and the Indian Air Force share the dubious privilege of a first-row seat to the development of their own PMF (Perspective Multi-role Fighter) project, based on the Sukhoi T-50 PAK FA and the aerospace-industrial efforts of their Chinese rival, manifested in the form of the Chengdu J-20 and Shenyang J-31. Now, perhaps because of a lack of reliable highperformance engines and alloys, India is witnessing a sliding Russian foundation. One of the biggest concerns already hotly debated in discussions at aerospaceexhibitions from Farnborough to Dubai, as well as in many online blogs and forums, is the expected operational service entry-date of low observable (stealth) aircraft that are undertaking flight testing but are still suffering from programme delays, including the F-35, T-50 (PMF), J-20 or J-31. At the same time, there are more distant and promising projects looming, such as the soon-to-fly, scaleddown, stealth fighter demonstrator for the Japanese ATD-X ‘Shinshin’ or the similar projects being developed by Turkey and Korea. In all these discussions, an essential question emerges. How wide is the

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gap today between the Russian and Chinese industries when it comes to this special and key area of military technology? Is there even a gap anymore? While there are many who will argue with a passion that there is a huge gap in favour of Russian products and will denounce all Chinese efforts as inferior, stolen or fake, others underline – with good examples – that this gap in industrial capability has definitely narrowed and, in some fields, has indeed vanished…

Shortening the gap Leaning more towards the second opinion, this author is still convinced that at the peak level of these Russian and Chinese high-end machines, the T-50 is still ahead. Not in its body work, but rather in its detailed system solutions; its internal structures, Sukhoi’s calculation of dynamic loads and stresses, and moreover in TsAGI’s remote control system. However, it is no longer ahead in its broader manufacturing basis around aerospace-design or in its interconnected industrial background. Compared to the still-capable but still-predictable and always-the-same Russian ‘powerhouse’, the Chinese industrial footprint is a huge. Overall – outside of the sleek looking but internally (we assume)

simpler rivals of the J-20 and J-31 – a vast Chinese master plan emerges involving the Y-20 transport (vs. the Il-476), new trainers like the L-15 (vs. Yak-130) and advanced UAVs like the X-47 styled ‘Lijian’ (vs. no obvious Russian counterpart). Aside to this, given the actual number of other legacy platforms already introduced over the years (J-10B, J-11B/BS, J-15/S, J-16 vs. the Russian Su-30-, Su-34- and Su-35-series), the Chinese are no longer that far behind. They still have problems when it comes to intellectual property and copycat productions, but in its build up of operational power for future Asian conflicts, which many believe are inevitable, they are rapidly gaining ground.

Money and spirit There is a noticeable difference in the way the Chinese manage large projects like these, many of which can involve hundreds of suppliers. This difference mainly lies in the way money is channelled and allocated. We have to keep in mind that considerably more Russian funds (50 percent or more) were made available for re-armament and modernisation since Putin arrived on the scene, seeing activity over the past decade. But we must not forget that many of the rubles have been sinking into private pockets and ‘dachas’ among

The Briefing Room the Russian elite. There is corruption in China as well, but the Chinese leaders are more obsessed than their Russian counterparts to catch up with their northern neighbours and with the West. In terms of electronics and avionics, system integration, modern material and other factors, the Chinese have gained a lot of knowledge through investments and cooperation with Western companies. Joint-venture and dual-use technology have been as beneficial as espionage efforts, whether in hacking Lockheed Martin suppliers or in undertaking HUMINT missions in the Siberian KnAAPO plant. Because of these factors, some sectors of the Chinese industry are massively surpassing those of Russia thanks to industrial management skills – not to mention the general Sino culture that rewards discipline and organisation – the availability of knowledge and, last but not least, an almost endless supply of money. Meanwhile, the massive Chinese industrial sector has plenty of know-how in organising and running coordinated, multi-track operations. This is enforced from their most senior political leaders, down to individual shift-chiefs. The Russians on the other hand simply do not tick that way. Most Russian engineers are now more concerned with manufacturing shashlik on a barbecue at their dachas or are already hurdling the fence of retirement. The latter is a much more critical phenomenon that is now making an impact on the sector’s key technical positions than it is in China. Of course, that’s understandable. Most of these silver-haired workers are educated ‘Sovietmen’, a fact confirmed to me in conversations when many of them mentioned that during their youth, their factories would partly pay them with potatoes and coal. The number of these engineers dwindles every month. Skills are not being transferred. When they eventually disappear, there will be a gap. According to Kommersant (late

last year), plenty of young educated Russians – particularly those in IT and the high-tech industries who are so eagerly sought by employers abroad – are either thinking of leaving the country or have already left. The Ministry of Education and Science has listed the number of Russian scientists and specialists currently working abroad at around 25,000, which is a conservative estimate. The Russian Academic Science Association claims that the number is closer to 100,000, while last year the head of Russia’s Audit Chamber, Sergei Stepashin, told Moscow-based radio station Ekho-Moskvy that a total of 1.25m Russian specialists are working abroad – most in high-tech hubs like Silicon Valley. Clearly, not everyone has been affected by the rising ‘Holy Russia’ national rhetoric, re-established by the current administration.

An eager PLAAF delegation touring the SALYUT plant

Achilles heel Of course, even Russia’s Chinese successors have their Achilles heel – even if they are not as harmed by a national brain drain – and it is a considerable one. Current consensus is that the Russians are still ahead in the field of high performance power plants. The Chinese weakness lies in its obstinate persistence to further high-tech machinery, necessary to manufacture specific high-tech parts and assemble them to the latest standards. High-performance low-bypass turbofan engines remain their major hurdle in any project, and a major drawback is in the machinery that is processing

The gap in industrial capability has definitely narrowed and, in some fields, has indeed vanished turbine-blades. China can produce turbine blades, but they use the same method as was done 3040 years ago. Here, they still face an uphill battle with what we in the West call modern technology, particularly in engine production, with blisk-fans using monocrystal blades with integrated vents. Today’s aluminium and steel are of course not just aluminium or just steel; they are actually complex alloys including extremely specific amounts of exotic materials and then processed together in very special ways. In fact, today’s blades from AVIC-engine shops are something “even” Iranians can do! At the Iran Kish Island Airshow, I saw domestically manufactured‚ conventional turbine-blades and combustion chambers for the TF30s (F-14) and J-79s (F-4). Nor do the Chinese actually have access to all the necessary metallurgyrelated material specifications, with the result that their engines, while similar in size and poweroutput, are usually heavier and provide less thrust than their Russian or Western ancestors. From an operational perspective, they are nowhere near as long-lasting and will suffer between inspection dates. For years we have witnessed the sixth brochure on a WS-13 or WS-15 (fighter engines) or another leaked WS-20 (transporter engine) testbed-image. Defence Industry Bulletin :: 23

The Briefing Room Lab and test-centre conditions are significantly different from what is encountered on remote airbases on squadron-levels with semiskilled maintainers, and in China even more so. The best evidence of all this is a fresh 2013 Chinese order for 123 SALUT-made AL-31FN turbofan engines to the tune of half a billion U.S. dollars.

On the other hand… Almost in complete contrast, Chinese electronics and avionics are at least on par with the Russian output. Let’s look at fighter radars, for example. Russian radars have so far required immense power input, while having a relatively low processing capability. None of their Chinese counterparts demand a power-supply surpassing the presently available capacities of specific aircraft types, which means they can be installed into (updated or modernized) Chinese aircraft-types and do not require the internal structures to be rebuilt or stronger power generators, extra-large APUs, or any other upgrade. Quite simply, this not possible for some of the latest

An expression says more than a thousand words…

24 :: Defence Industry Bulletin

Russian-made radars. The builtin power generators of a Su-30 simply can not support radars like PERO and BARS up to their fully exploitable capability. I was told in India that, at best, these Russian components are providing about half of the necessary peak-power, which in turn means that it is difficult to install the latest radars into any existing Su-30 without considerable internal redesign. This in turn would demand further aerodynamic refinement and counter-balance. The list of knockon effects continues. There is another factor that has also blown up in the face of the Russians recently. Programme managers may have been surprised when they saw that the ‘new’ missiles recently tested on the T-50protoypes in Zhukovsky are in fact older ones, or at best, modernised versions of types already in service since for over two decades. What happened? Companies like ARTEM and ARSENAL who are running R&D and supply the seeker heads for many of the advanced Russian A/A-missiles, are located in Ukraine. Amid the foolish, nationalist and bloody rift with Kiev, Russian industry leaders

have now lost some of their R&D resources in this arena and have found themselves struggling to recover these capabilities. Following the announcement of a “totally new family of fifth-gen smartweapons for the T-50”, nothing has yet been seen. Instead, we have had over twenty years of phantom missile rumours, like that of the ultra-BVR KS-172 ‘AWACS killer’ from NOVATOR. Meanwhile, China has developed a local production capability of R-27 BVR missiles thanks to a transfer from Ukraine…

What this means for the Indian PMF When asked about possible Indian participation in the F-35 JSF, former IAF Air Chief Marshal PV Naik in 2011 lectured me on the fact that the IAF already has a fifth-gen project and the level of access and flexibility they get from the Russians in the FGFA [today’s PMF] is unsurpassed, contrary to the common U.S. technology restrictions. Now, if one pays attention to the opinions being expressed by the Indians, it may not be too bold to state that the T-50 / PMF project seems to be in some degree of chaos. Indian negotiators (IAF and DRDO) have been asking the Russians to provide all technical-details and flight performance results, which are reasonable to expect with five prototypes having been in the air since 2011. Yet sources say that the Russians have been quite reluctant to meet this request. Interestingly, the IAF has also asked to be allowed to send an Indian team to evaluate PAK FA – as it is now – in Russia, but the Russians have yet to allow that either. At the same time, the Russians are claiming the PAK FA / T-50 as superior, or even exceeding in capability, to the F-35 and the F-22A. While the first claim could be(come) a realistic assertion – such as if the F-35s network-centric spoofing cards do not strike

The Briefing Room in some situations or if there is no BVR by the RoE – the Raptor’s RCS is still a whole decimal point smaller than that of the PAK FA. Officials and test-pilots have told me that the PMF in its current status might have a tough time fighting a networking F-35, especially when it is stealthier than an F-22. Moreover, the PAK FA has failed to impress Indian teams across every department, whether in its engine, avionics package or weapons-kit. At every level there seems to still be ‘work in progress’ and it will reportedly take another decade before the PMF (with 30 per cent domestic HAL input and design) can be certified for combat and put

If Delhi drops out of the PMF, although unlikely, it would happen more because of funding than of techno-policy irritations into (co)production. At the 2013 Dubai Air Show, I was told that the IAF’s three top objections to the FGFA were: (1) Russians are reluctant to share critical design information with India; (2) the fighter’s current AL-41F1- or 117S-class engines are not powerful enough, being mere upgrades of the Sukhoi30MKI’s AL-31 engines; and (3) the thing is too damned expensive. If India pays $6bn to co-develop the FGFA, a large percentage of IAF’s

capital budget would be locked up. On January 15, the IAF renewed concerns at an MOD meeting held to review progress on the PMF. The IAF’s deputy chief of air staff (DCAS), its top procurement official, again explained that the PMF‘s engine is unreliable, that the radar is inadequate, that the stealth features are badly engineered, that India’s work-share is too low and that “the unit-cost would be exorbitant by the time it enters service…” To hear the opposite side, the Russian ambassador to India, Alexander Kadakin, rubbished all doubts in early 2014, saying, “We pay no attention to negative publications that appear from time to time and claim that Russia does not fulfil its obligations under the fifth generation fighter aircraft programme. Russian-Indian military-technical cooperation under this programme develops as scheduled and we have not received any official complaints from the Indian side…” Originally, the majority of what was devised as the FGFA was described to me as a two-seater. This hasn’t appeared. The Russians, like Saab with its single-seat Gripen-E or the U.S. F-22 and F-35, are not pursuing one. The result is that the Indian demand for a two-seater is also fading away. The design has been reoriented for a planned 166 single-seater and 48 twin-seat fighters, but the IAF DCAS confirmed in October 2013 that they would now opt for only 144 singleseat jets, with domestic production slated to begin in 2020. In other words, it looks as though Russian programmes are not shaped by official Indian requirements, in spite of India having so far exercised a ‘pro-Russian neutrality’ during the recent Ukraine crisis and having chosen not to participate in sanctions against Moscow. It therefore remains possible that if Delhi drops out of the PMF,

although unlikely, it would happen more because of funding than of techno-policy irritations. As an emerging regional player and nuclear-capable democracy, India needs a fifth-gen fighter as much as it needs the MMRCA (Rafale). But with the latter’s characteristics already heavily challenging the manufacturing capabilities and warranties of its state-run HAL, this raises questions for the future platform. Meanwhile, it’s simply too early to tell whether the Modi government’s new stance on HAL and its new openness to foreign tenders may have any impact on the PMF.

Conclusion India’s continuous reliance on Russian industry, together with the limbo of the yet to be inked contract with Dassault for over 126 Rafale jets, will, for the next decade, widen rather than narrow the gap between India and China in high-end combat jets. The PLAAF will continue to get J-10Bs, J-11Bs, J-15 and J-16 and, eventually, J-20s, while the IAF will remain several whole squadrons lacking from what should be out on the aprons. That China could take the opportunity to build new economic/defence ties with India to undercut Russian competition by offering Chinese designs is beyond anybody’s imagination. The IAF and its key personnel very much remains a British-shaped organisation and, for Dehli’s political class, Beijing remains an ever emerging regional rival, anxiously monitored along a delicate TAR (Tibetan) border and across the Indian Ocean. In the event of a true confrontation with China – and/or its ‘proxy’ Pakistan, given India’s preoccupation with encirclement – many educated Indian scholars and officers predict that the U.S. or the EU would not support them.

Defence Industry Bulletin :: 25

The Briefing Room PLA and Chinese industry at odds over Russian fighter engines China’s apparent inability to build effective indigenous jet engines has caused tension between the government’s defence procurement agencies and the PLA. Analysts have cited the Shenyang Liming Aircraft Engine Company’s WS10A engine as problematic, causing major delays to large-scale

production of operational J-11B, J-15 and J-16 fighters. The PLN have already cancelled the integration of the powerplant on the J-15 carrierbased jet. The WS-10A is likened to the design of the Russian Lyulka AL-31F. China has acquired several variants of the AL-31F over the years in conjunction with the purchase of Russian fighters, but military leaders want to replace the Russian engine on all of its aircraft with the Chinese model. It is unlikely,

Mass production is now said to be underway on China’s carrier-based Shenyang J-15, based on the Su-33.

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according to reports, that China will have enough AL-31F engines to match the new fighter programmes, which will result in a major production gap until an indigenous or alternative solution can be perfected. It is highly doubtful that the government will entertain the idea of procuring more foreign engines as it wishes to strengthen both its economy and technical engineering capabilities.

The Briefing Room Fast Craft and Innovative COTS (Commercial Off The Shelf) Solutions John Haynes

Tampa Yacht Manufacturing 50-FAC (Fast Attack Craft) is an interdiction and patrol-class vessel for naval and border security operations. The 50-FAC is a reconfigurable craft capable of operations from land or maritime platforms

he world is changing fast

and this is especially true in the military and professional fast boat sector. When selecting a new boat the questions used to be relatively simple - how long, how many engines, what fuel type and how fast? Military and professional maritime organisations have been driving the evolution of extreme fast craft for over 30 years. Naval architects, engineers and boat builders have risen to the challenge, producing unique boats in aluminium, fibreglass and composites engineered to deliver high performance. The next stage has been ensuring that structures, equipment and crews can withstand the resulting forces! Since the millennium RHIBs and High Speed Craft (HSC) have been at the cutting edge of maritime operations for everything from counter terrorism, homeland security and law enforcement to extreme weather rescue. Looking to the future, navies and coast guards around the world will make financial, environmental and operational decisions to use fewer

ships and more boats to secure their coastlines and waterways. For military and security applications the next generation of RHIBs and HSC will need to be larger, faster, multi-role craft with the same navigation, communication and information systems that are found on a ship’s bridge. Many fast craft will include modular design features that allow them to vary their internal and deck layouts for different mission profiles or as their role changes over time. The call for extreme fast craft with specific requirements and capabilities has led to innovative designs including catamarans, multi-hulls and novel hull forms. However the process of oneoff craft design and bespoke equipment can mean that in the period from concept through tender to launch the requirement has changed. Technology can be rapidly outdated or the craft simply becomes too complex for its original length overall (LOA). Timelines and budget constraints are increasingly driving procurement decisions. By

identifying the priority roles and accepting a level of compromise various Commercial Off The Shelf (COTS) hull, engineering and equipment solutions are increasingly viable. Although offshore patrol vessels (OPVs) are used all over the world to cover large areas of water, it is the ships boat that is launched to board a suspect craft. Visit, Board, Search, Seizure (VBSS) are maritime boarding actions that range from naval anti-piracy to conducting customs, safety and compliance inspections. As sophisticated criminals increasingly use sea transport, the specification of law enforcement and security craft is evolving. The motivation is high when typical illegal cargoes include narcotics, arms and people. Smugglers operate from all sizes of vessels while the boarding teams and naval forces usually transit from a larger vessel to the target in 25 to 40 foot RHIBs. An increasing role for larger RHIBs and HSC is asset protection or high interest vessel escort which requires a moving security zone as ships approach or leave a port. This level of positive control requires multiple craft supporting interoperability between military, police and government agencies. Boat builders providing craft to this sector need to fully understand the end-user requirements. Specialist solutions include lightweight ballistic protection, shock mitigating seating linked to control systems and sophisticated surveillance electronics. With a full situational awareness suite the electronics may now be higher value than the standard boat. But with all this technology various organisations still require an alongside ramming or ‘hard contact’ capability to physically intercept other craft.

Defence Industry Bulletin :: 27

The Briefing Room RHIBs make excellent personnel carriers, the inflatable collar makes the craft extremely versatile by providing high stability and the ability to fender off vessels without damage. Foam collar designs offer a heavy duty fender that can be cut, perforated or shot but will not deflate. Tampa Yacht Manufacturing (TYM) is working with clients around the world to create cost effective COTS fast craft platforms. Robert Stevens of TYM said, ‘A RHIB with air filled tubes is often a good choice for stopping and searching other craft. If resistance is expected then foam filled tubes backed up with ballistic protection may be required.

As sophisticated criminals increasingly use sea transport, the specification of law enforcement and security craft is evolving A proven performance hull can be utilised for various applications. Our designers simply re-configure the layout and onboard equipment for naval patrol boat, law enforcement or fast rescue applications.’ Maritime organisations use RIBs and HSC to perform a wide range of operations. The consistent aim is that crews arrive safely at their destination ready to do a job, or in some cases ‘fit to fight’. When extreme fast craft simply have a design objective for ‘unbreakable boats with a surplus of engine

28 :: Defence Industry Bulletin

power’ then ‘man’ becomes the weakest link. To maximise crew performance, increase sea time and ensure a high mission success rate professional operators need to identify what sea conditions could be encountered during transits, then ensure that the type and size of craft they are using is suitable for the purpose. Brunswick Commercial & Government Products (BCGP) is continuously expanding their ranges of inboard and outboard craft ready for outfitting to client specifications with high end onboard electronics and various COTS component and equipment options. Jeremy Davis, Director of Sales, said, “BCGP has been a flagship range for over fifty years in the 15 to 27 foot range. To meet the changing needs of our professional clients we are now building Whalers up to 42 feet and our Impact RHIB range up to 40 feet. To ensure that we cover all mission requirements BCGP now offers the Sentry aluminium series, based on a supply agreement with Metal Craft Marine to produce our hulls up to 45 feet.” Patrolling is often at low speeds, interception is not. Border forces, law enforcement and critical asset security operators have discovered that to run these multi engine rigs at full power it is essential to have stronger steering systems, more responsive throttles, performance exhaust systems plus drives and propellers that transfer power into thrust and control. The high performance components industry that has emerged around the demanding race boat community of Southern Florida has developed COTS materials that can be retrofitted as upgrades, or specified on new professional sector boats. Navigation and communication units are classic example of COTS systems. It is relatively simple to identify potential systems, then do side by side comparison of functions and durability. There is no reason why a modern nav or

comms system should fail, however as all boat operators will tell you, ‘electronics and water still don’t mix!’ A cost effective solution is to hold spare units to ‘plug and play’ or have an ASAP delivery agreement for unit replacement. Integration is still an ongoing issue with both bespoke and COTS hardware including GPS / chart plotter / radar / AIS units and the associated software. In addition many organisations, especially law enforcement and SAR, now need traditional marine electronics to integrate with PC applications, tablets and smart phones. The ‘need for speed’ is at the heart of military and professional fast craft operations. However it is a hard fact for many professional organisations around the world that fuel budgets are being cut. Engine manufacturers now recognise that high performance must be balanced with fuel economy and environmental compliance. If fuel budgets become an issue crew training is usually reduced with craft only launched for operational purposes. Top speeds for interceptors can exceed 60 knots, but these ‘burst speeds’ are rarely used as high performance boats have a recommended cruising speed linked to optimum fuel range. Various manufacturers; including Volvo Penta, Mercury, Yanmar and Cummins have recognised the growing milpro demand for high performance diesel engines. Fast boat operators need to constantly adjust ‘power on / power off’, when running into a head sea or during boarding operations. The engineering challenge has been to combine the robust characteristics of diesel engines with reduced turbo lag and improved throttle response. Since the 1990s the automotive sector, particularly in Europe, has driven the development of high performance diesel engines.

The Briefing Room Lighter weight blocks and components, combined with electronic fuel management systems and fly by wire controls are enabling the next generation of inboard diesels to close the ‘responsiveness’ gap with gasoline (petrol) outboards.

Power and performance are relevant, but reliability and durability are the most important factors Over the past two decades navy and air forces around the world have made the decision not to carry gasoline. From this decision high power diesel outboards have become a priority objective for both end-users and engine manufacturers. But there have been significant engineering challenges to overcome, particularly the size of unit and overall weight. In the interim, multi-fuel engines have filled the needs of a specific group of operators. Jeff Wasil, Engineering Manager, at Evinrude said, “Fifteen years ago Evinrude started to develop a Multi Fuel Engine (MFE) with, water jet propulsion, for the US Marine Corps and the SEAL

teams. These units needed multifuel engines to power their fleets of Zodiac F470 Combat Rubber Raiding Craft, operating from ships and aircraft in harsh environments. The 55hp and 30hp MFE engines can be submerged and are designed to run on kerosene, aviation fuels and standard gasoline. Fuel selection can be changed with the simple flip of a switch.” Engines and propulsion systems that are designed and built for military or professional operations need to run hard, often for long hours in adverse sea conditions. Users rely on these systems for mission success and in certain situations failure is not an option – the engineering must not break. Professional boat operators around the world have learned that power and performance are relevant, but reliability and durability are the most important factors for all types of engine and propulsion systems. It is no coincidence that smugglers of people and contraband often select RHIBs. This is simple market forces at work as RHIBs are relatively cheap and ready to use off the shelf. If the buyer finds a boatyard that asks no questions the RHIB concept allows for stretched hulls and multiple outboard set ups. With no procurement process to go through, no pollution or environmental compliance, no health and safety concerns and no fuel budgets this can deliver a very simple and efficient platform. At the recent Fast Patrol & Interception conference in London, high level maritime agencies from three countries demonstrated that simple is good. They all showed smugglers boats

BCGP 36 Sentry RHIB is a fast and flexible platform. This version is configured, with multiple life rafts and aft deck access to the water, for rapid rescue support in the vicinity of aviation runways that are close to water.

that had been impounded then re-badged as interceptors. These are known as ‘modified boats’ or ‘reformed boats’. This Captured Off The Smuggler version of COTS can be viewed as innovative re-cycling and effective budget management! Looking globally various regions are building fast craft fleets from zero. Some organisations consider the craft to be a mobile platform that gives them a presence across a specific area of sea or coastline. The term ‘L1’ associated with a tender simply means that to get the maximum number of craft for their budget the lowest bid wins. As specialist boat and equipment solutions evolve to respond to enduser requirements the percentage of COTS equipment in all military and government agency fast craft fleets is likely to increase.

John Haynes is an Associate Fellow of The Nautical Institute, Yachtmaster Ocean and Advanced Powerboat Instructor. Subject matter expertise includes high speed craft consultancy, product development and specialist training. He is Operations Director of Shock Mitigation and founder of the RIB & High Speed Craft Directory that brings together specialist boats and equipment for the professional sector worldwide. Website: www.ribandhsc.com.

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Industry Statistics – The Big 10 (US)

• • • • • •

In July, Lockheed Martin announced Q2 net sales had decreased 1 percent to $11.3bn. Q2 net earnings increased 3 percent to $889m. Q2 earnings per diluted share increased 5 percent to $2.76. The company generated cash from operations of $977m and increased its outlook for operating profit, earnings per share and cash from operations. Subsequently (September) announced a 13 percent rise in its Q4 dividend and room for more stock buybacks reflecting an anticipation of further defence cuts in the U.S. As of September, the Republic of Korea agreed to purchase 40 F-35 Lightning II Joint Strike Fighter (JSF) aircraft for its F-X fighter acquisition programme, in a contract worth $70bn. LM is also set to open an $8m ICT engineering hub in Australia and has formed an Israeli subsidiary to focus on data/IT development.

(US)

• • • • • •

Q3 Share Price Chart (USD)

In July, Boeing boosted its earnings guidance for the year. Q2 earnings climbed 52 percent thanks largely to cost-cutting and jetliner demand. Per-share earnings estimate for the year rose to $7.90 to $8.10 a share, reflecting $408m in tax benefits, a strong operation performance and a $272m charge tied to the KC-46A tanker programme. Boeing reiterated its expectation to beat its 2013 record of 648 jetliner deliveries with between 715 and 725 in 2014. Orders in 2014 are also forecast to exceed deliveries. However, its space and security division reported weaker results amid tight U.S. defence spending. Revenue fell 5.4%, while operating earnings slumped 25%. Overall, Boeing reported a profit of $1.65bn ($2.24 a share) up from $1.09bn ($1.41 a share) a year earlier.

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Industry Statistics – The Big 10 (UK)

• • • •

On July 31, BAE Systems announced no change in its outlook for the year after reporting a predicted 7 percent fall in half-year profit. Half-year earnings EBITA reported at £802m, compared to a forecast of £800m. Sales have been anticipated to be weighted towards the second half of 2014. The company has also been finalising £1.3bn of international orders and has been in the advanced stages of negotiations on £1bn worth of UK naval contracts. U.S. spending cuts and non-recurring benefit from the settlement of the Salam deal with Saudi Arabia had earlier in the year cut the earnings outlook for 2014 revenue, but BAE Systems remains on track to deliver to full year expectations and pound has gained, offering a boost.

(US)

• • • • • •

Q3 Share Price Chart (GBp)

Q3 Share Price Chart (USD)

In July, Raytheon announced Q2 sales fell 6.8 percent and declines across its four divisions. The integrated defence unit remained behind other segments (such as missile systems and intelligence) with a 10 percent drop in revenue due to a number of overseas production programmes ending and a 33 percent decline in operating income. During that quarter, net income from continuing operations rose 2.3 percent to $499m ($1.59 a share), from $488m ($1.50 a share) on a year earlier. Q2 saw sales drop to $5.7bn. Raytheon also registered the biggest decrease among the five largest U.S. government contractors. Shares have risen 34 percent in trading in the 12 months preceding July. The company said its backlog rose to $33bn in Q2 from $32.4bn a year earlier. Raytheon is pursuing more business overseas, with international customers currently accounting for 29 percent in Q2. Recent U.S. budget restrictions have hampered revenue. Major contract wins since July include $149m to source parts for Rafael’s Iron Dome missile system in Israel and a $251m Tomahawk missile contract from the U.S. Navy. The UK has been ordered to pay the company $374m in damages for reneging on a 2010 border security contract.

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Industry Statistics – The Big 10 (US)

• • • • • •

In July, General Dynamics announced Q2 diluted EPS from continuing operations rose 3.9 percent over a year earlier. Q2 revenue was announced at $7.5bn. Net cash provided by operating activities within Q2 totalled $866m. Company-wide operating margins increased to 12.7 percent. Total backlog rose to $71.1bn, 27 percent over Q1 2014. Significant deals include a $17.8bn multi-year contract from the U.S. Navy for 10 additional Virginia-class submarines, $645m for support on the Canadian Maritime Helicopter Project and $290 million from the U.S. Army for 93 Stryker vehicles and logistics support. Also has a strong projection for the continued interest in its Gulfstream business jets.

(US)

• • • • •

Q3 Share Price Chart (USD)

Northrop Grumman reported second quarter 2014 net earnings increased 5 percent to $511m. The company repurchased 6.1 million shares of its common stock for $741m in the second quarter of 2014. Second quarter 2014 total operating income increased $14m or 2 percent. Aerospace Systems second quarter 2014 sales decreased 4 percent due to lower volume for unmanned and space programmes. The company will “continue to focus on performance, cash deployment and portfolio alignment as the primary value creation drivers.”

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Industry Statistics – The Big 10 (Netherlands)

• • • • •

Revenues increase six percent to € 27.2bn driven by Airbus Commercial Aircraft and Airbus Helicopters with flat revenues at Airbus Defence and Space. The first A320neo had its maiden flight in September with the programme on track for entry-into-service in the fourth quarter of 2015. Entry-into-service for the A330neo is scheduled for the final quarter of 2017. EBIT before one-off up 10 percent to € 1.77bn. Net income increased 50 percent to € 1.14bn. At Airbus Defence and Space, satellite launches in the second quarter included the Earth observation satellite Spot 7.

(Italy)

• • • •

Q3 Share Price Chart (EUR)

New orders in Aerospace and Defence were higher than the corresponding period of the prior year thanks to the Helicopters segment (up €mil. 1,249 compared to 2013), largely for the contracts for the upgrading of the fleet of 25 AW101. Revenues of the Aerospace and Defence sector fell compared with 2013 due to the mentioned cuts in Defence budgets, mainly in USA. Financial performance was better compared to the first half of 2013, in spite of the enforcement of the guarantees for the Indian contract in the Helicopters sector, which had a significant effect on 2014 for an overall amount of €mil. 256. Media reports said a consortium including China CNR Corporation had made an attractive cash offer for Finmeccanica’s rail units Ansaldo STS and AnsaldoBreda.

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Industry Statistics – The Big 10 (US)

• • • • •

In Q2 UTC reported sales of $17.2 billion, including 3 percent organic growth. UTC reported second quarter earnings per share of $1.84 and net income attributable to common shareowners of $1.7 billion, both up 8 percent over the year ago quarter. The company saw a fourth consecutive quarter of organic sales growth. Large commercial engine spares orders were down 6 percent at Pratt & Whitney and commercial spares orders increased 28 percent at UTC Aerospace Systems. Cash flow from operations was $1.7 billion and capital expenditures were $406 million in the quarter.

(US)

• • • •

Q3 Share Price Chart (USD)

For the 2014 second quarter, consolidated net sales of $3bn decreased $183m, or 6 percent, compared to the 2013 second quarter. Sales to the U.S. Government, including the DoD, declined 8 percent and impacted the Aerospace Systems, Electronic Systems and Communication Systems segments. Net cash from operating activities of $277m. Book-to-bill ratio of 1.08, with funded orders of $3.3bn and funded backlog of $10.7bn.

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