KMW establishes Asia Pacific hub in Singapore
KMW establishes Asia Pacific hub in Singapore- Demonstration of commitment to Singapore
- Singapore strategic hub for Asia Pacific business
Singapore/Munich, February 2nd 2010. Krauss-Maffei Wegmann (KMW), Europe’s market leader for protected tracked and wheeled vehicles, officially announced the founding of a new subsidiary in Singapore today. Named KMW Asia-Pacific, it will act as a regional hub for KMW’s activities in Singapore and Asia. “This step is a clear commitment to Singapore which has recently purchased LEOPARD 2 main battle tanks and respective periphery systems, delivered by KMW”, Frank Haun, CEO of KMW, said during his visit to the Singapore Air Show 2010. “With the LEOPARD 2, KMW has arrived in the Lion City. The MBT is a catalyst for future activities in Singapore and beyond.”
The new company is headed by Christian Goettfert, KMWs former Regional Sales Director for Asia-Pacific. He has a long standing record in sales and marketing and an in-depth knowledge of the region.
In a first step the hub’s core function will be the coordination of all company activities related to LEOPARD 2 deliveries, commissioning and follow-on-support of the combat systems. In addition the company’s strategic role focuses on the generation of new business opportunities in a market that is of strategic importance due to the high demand for highly sophisticated land systems and cutting-edge technologies.
With the formation of its Asian-Pacific subsidiary KMW also continues its path of regional cooperation and technology transfer. In order to ensure the LEOPARD’s combat effectiveness, KMW builds on the strong partnership with Singapore’s local industry partner ST Kinetics. Since the beginning of the main battle tank program KMW has trained ST Kinetics personnel in Germany and in Singapore in the servicing and technical maintenance of the SAF systems – a partnership that is to be further expanded in the future.
Krauss-Maffei Wegmann GmbH & Co. KG leads the European market for armoured wheeled and tracked vehicles. At locations in Germany, Greece, the Netherlands, Singapore and the USA, some 3400 employees manufacture and support a product portfolio ranging from air-transportable, heavily armoured wheeled vehicles (MUNGO, DINGO, GFF4 and BOXER*) through reconnaissance, anti-aircraft and artillery systems (FENNEK, GEPARD, LeFLaSys*, Armoured Howitzer 2000, AGM and DONAR) to heavy battle tanks (LEOPARD 1 and 2), armoured personnel carriers (PUMA*) and bridge-laying systems (LEGUAN and PSB2). In addition, KMW has wide-ranging system competence in the area of civil and military simulation, as well as in command and information systems and remote-controlled gun-carriages with reconnaissance and observation equipment for day and night missions. The armed forces of more than 30 nations worldwide rely on the operational systems by KMW.
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Framework Seems To Have Been Reached To Allow A400M Resolution
Filed under: Business Line, Companies, Countries, EADS, Events, France, Germany, Military Aviation, Restructuring, Services, development program, logistics
Late last week it was announced that EADS and the customers for the A400M transport seemed to have reached a framework to allow talks to proceed that may resolve the funding issues with the program. Due to about two years of development and integration problems the aircraft only achieved first flight in December, 2009 and now will not deliver the first aircraft until 2012. These have caused EADS and its subsidiary Airbus to spend billions beyond the money planned.
The company is trying to work a deal where the customers pay a large portion of the overruns as the initial contract was a Fixed Price one that did not provide enough funding to cover the delays. EADS has spent over five billion Euros of its own money on the program and is hoping that either through price increases or direct investment the seven major European buyers will cover these costs. Recently EADS had threatened to just go ahead and end work on the program and eat the losses rather then continuing it and losing more money.
After a recent meeting it became clear that most of the countries involved are willing to work out some financial deal with EADS and that company will agree to continue talking. There will be a meeting in early February to begin these discussions. The compromise being discussed would see increased production prices and lower quantities for a few years with EADS absorbing some of the cost overruns internally. Then there would have to be a decision point in the future whether to complete the program’s planned total quantity. One of the two FMS customers, South Africa, already canceled their order due to the price increases proposed by EADS.
The A400M is the premier military aerospace program in Europe and it suffered from the optimistic plan to use a fixed price development contract. Not completing it would be seen as a blow to EADS and European defense integration. At the same time all of the customers are facing financial pressure due to the global downturn and increased social spending. At the same time building only a few of the aircraft solves nobody’s problems.
A400M first flight video from signatoryvideos. http://www.youtube.com/watch?v=oX-kIUYRyDk
9 billion euro contract for 112 Eurofighter Typhoons signed – Press Release
Filed under: Business Line, Companies, Contract Additions, Contract Awards, Countries, England, Events, Germany, Italy, Military Aviation, Spain, production program
9 billion euro contract for 112 Eurofighter Typhoons signed
NETMA (NATO Eurofighter and Tornado Management Agency), Eurofighter Jagdflugzeug GmbH and EUROJET Turbo GmbH signed today the production contract for a further 112 aircraft, including 241 engines, for the four partner Nations: Germany, Italy, Spain and the United Kingdom.
The Tranche 3.9 billion contract confirms Eurofighter Typhoon as the best selling defence aircraft on the market with 559 units under production contract, including 15 for Austria and 72 for Saudi Arabia.
Eurofighter Jagdflugzeug GmbH CEO Enzo Casolini commented: “This is a major achievement in the Eurofighter programme and serves to reaffirm the importance and the independence of the defence sector of the European industry. The agreement, achieved in conjunction with NETMA and the four Nations involved in the programme, will provide the Air Forces with the best asset available to address their requirements for both air-to-air and air-to-ground roles”.
EUROJET Managing Director Hartmut J. Tenter commented: “This is an outstanding success for the EUROJET programme and a clear signal to the international community endorsing the quality of the product. The EJ200 stands for leading-edge technology, including advanced integrated Health Monitoring to deliver class-leading reliability, maintainability and Through Life Cost—the benchmark of excellence”.
NETMA’s General Manager, Lt.Gen. Antonino Altorio remarked that “the capabilities of Tranche 3 aircraft consolidate the already excellent performances of Tranche 1 and 2 aircraft and will enable the Air Forces to carry out primary air defence in NATO missions as well as maintaining air superiority in theatres of operations and, if necessary, providing support in the air-to-ground role. This contract sets the baseline for consequent contracts for logistic support which is fundamental to keeping fleets available while reducing, significantly, the cost of in-service support”.
Today the Eurofighter programme not only represents the largest European industrial programme, supporting 100,000 jobs in 400 companies across Europe, but it is also the most advanced example of technology within the European industry base. It sets the standard in terms of best value for a new generation defence aircraft programme.
With the production of Eurofighter Typhoon, now being confirmed until well into the next decade, the future of the programme is assured and will maintain and develop the current technological capability in Europe, enhancing future export opportunities and giving the four partner Nations a significant return on their investments. Having already secured two export contracts with Austria in 2003 and the Kingdom of Saudi Arabia in 2007, Eurofighter Typhoon will continue to follow up all export opportunities.
NETMA
Eurofighter and Eurojet Turbo consortia and their partner Companies are actively pursuing campaigns in Switzerland, India, Japan, Romania, Greece, Turkey and exploring possible opportunities in South Korea, Bulgaria, Croatia and other Nations.
Background information:
Eurofighter Typhoon is the world’s most advanced new generation real multi-role/swing-role combat aircraft available on the market and has been ordered by six nations (Germany, Italy, Spain, United Kingdom, Austria and the Kingdom of Saudi Arabia). With 559 aircraft under
production contract, it is Europe’s largest military collaborative programme and delivers leadingedge technology, strengthening Europe’s aerospace industry in the global competitive market.
More than 100,000 jobs in 400 companies are secured by the programme. Eurofighter Jagdflugzeug GmbH manages the programme on behalf of the Eurofighter Partner Companies: Alenia Finmeccanica, BAE Systems, EADS CASA and EADS Deutschland, Europe’s foremost aerospace companies with a total turnover of approx. 88 billion Euros (2008).
The EUROJET consortium is responsible for the management of development, support and export of the new generation EJ200 engine system, installed in the Eurofighter Typhoon aircraft. EUROJET’s shareholders comprise Avio (Italy), ITP (Spain), MTU Aero Engines (Germany) and Rolls-Royce (UK). The EJ200 engine, with its unprecedented performance record combined with multi-role capability and highest availability at low life-cycle costs, is perfectly set to meet the air forces’ demands of today and the future.
NETMA was formed on 1 January 1996 by the merger of two previously separate NATO agencies which had been established to manage Tornado and Eurofighter (EF2000) programmes.
The Agency is responsible to the partner Nations (Germany, Italy, Spain and the United Kingdom) for all the aspects of the programme covering development, procurement and inservice support of Eurofighter and Tornado aircraft weapon systems. NETMA provides partner Nations with an efficient, effective and coherent management service for these two major international programmes.
High Resolution images of the Eurofighter Typhoon and of the EJ200 can be downloaded from the web sites: www.eurofighter.com/medialibrary and www.eurojet.eu
Photo courtesy of Eurofighter.com.
Germany Orders New Armored Fighting Vehicle
Filed under: Business Line, Companies, Contract Awards, Countries, Events, Germany, PSM GmbH, development program, production program
The German government ordered over four hundred Puma Armored Infantry Fighting Vehicles from PSM GmbH. The contract is worth over three billion Euros when all options are included. PSM GmbH is a joint venture between Rheinmetall AG and Krauss-Maffei Wegmann GmbH. The contract will take ten years to complete.
The Puma is an advanced tracked vehicle that will carry personnel and weapons. It is considered a replacement for the Marder AIFV which has been in service since the Seventies. The Marder is broadly similar to the U.S. Army’s M2 Bradley or the Russian BMP AIFVs. More on the Puma project may be found at the companies website here.
The contract represents a significant investment in new equipment for Germany. With all of these programs there is hope that the vehicle will attract foriegn buyers.
Successful first operational NATO assessment of a Eurofighter Wing — Press Release
Filed under: Business Line, Companies, Countries, EADS, Germany, Italy, Military Aviation, production program
Successful first operational NATO assessment of a Eurofighter Wing
Excellent results were achieved after the first operational evaluation made by NATO of a Eurofighter Typhoon Wing. A NATO evaluation team certified the Italian Air Force’s 4th Fighter Wing at the Grosseto Base as a NATO Quick Response Force.
This means that the 4th Wing becomes the first Eurofighter flight unit to obtain this important NATO certification.
The operational evaluation took place during the “Operation Discrete Jury” exercise, which tested the ability of the 4th Wing to be deployed abroad for peace-keeping and peace-making missions.
The exercise involved many air wings’ activities, from rescue to telecommunication services, self-defence and survival capabilities and, more particularly, logistic support, maintenance and flight operations. It was in this very field that the operations of the Grosseto Base’s Typhoons were positively evaluated, having demonstrated excellent operational availability and compliance with national and NATO’s operational requirement.
Enzo Casolini, Eurofighter CEO, said: “We are very pleased that the first Wing of Eurofighter Typhoon has achieved such an important goal. This clearly demonstrates the maturity of the Eurofighter programme as well as highlighting the capabilities of the aircraft and its operational availability which reached a very high level”.
The 4th Fighter Wing, together with the 5th Wing of Cervia, the 36th of Gioia del Colle and the 37th of Trapani, is one of the Italian Air Force units assigned to the control of Italian airspace 24 hours a day all year round.
Within the 4th Fighter Wing, the 20 Squadron is also active with its twin-seat Typhoons which are tasked with the “transition” of Italian pilots assigned to the Eurofighter Squadrons.
England Vacillating On Next Batch Of Eurofighters
Filed under: BAE Systems, Business Line, Companies, Contract Additions, Contract Awards, Countries, England, Events, Germany, Military Aviation, Restructuring, Rolls-Royce, development program, production program
Back in May we had written that England would go ahead with the full buy of the next order of Eurofighter Typhoon modern fighter aircraft. This was based on the fact that the costs associated with canceling the contract would be prohibitive. There was also some hope that part of the aircraft could be used to fulfill foriegn military sales rather then seeing service with the Royal Air Force.
Now it is reported that the deal may fall through after all. England like America is faced with economic problems that have led to massive borrowing and an attempt to spend their way out off the recession. This means that funds are limited and the cost of the new aircraft fairly prohibitive. Not only will there be the cost of breaking the contract but several thousand jobs related to building the aircraft may be lost. The government is trying to renegotiate the price or the fees in order to save some money but time is running out. Germany has restated their support for the program and an intent to go ahead and buy the latest batch.
When the original contract was signed England did not imagine that they would not have enough money. It was they who insisted on the strict and high fees if the contract was not followed through on in an attempt to keep the other countries involved from leaving. This had happened several times in the past when NATO and the U.S. joined on various development and procurement programs.
The Airbus Military A330 MRTT Has Successfully Performed First Contacts Using A New Generation Of Under-wing Hose And Drogue Refuelling Pods — Press Relase
Filed under: Australia, Business Line, Cobham Defense Electronic Systems, Companies, Countries, EADS, Events, Germany, Military Aviation, Press Releases, Spain, development program, logistics
The Airbus Military A330 MRTT Has Successfully Performed First Contacts Using A New Generation Of Under-wing Hose And Drogue Refuelling Pods
The Airbus Military A330 MRTT (Multi Role Tanker Transport) has completed another major milestone performing successfully a series of dry contacts using the new generation Cobham 905E hose and drogue refuelling pods, located under the wings. The receiver aircraft was a Spanish Air Force F/A-18A+ fighter.
The system performed well in hose extension and retraction, and showed good hose response in the contact as well as stability during pre-contact and when connected.
This new refuelling pod is a development of the 907E pod already in service with the Canadian and German air forces on their A310 MRTTs. The pods can each deliver up to 420 US gal/min (1600 litres/min) through a 90 ft (27.4 m) hose, and are controlled from a state-of-the-art Fuel Operator Console located in the cockpit.
“The next steps in the flight test program involve more contacts with the new hose and drogue refuelling pod and the advanced Aerial Refuelling Boom System (ARBS), refuelling a variety of receivers that will include French, Portuguese and Spanish small and large receiver aircraft. This flight test phase will lead us to the completion of military certification, and final qualification with our customer” said Miguel Morell, Vice President Airbus Military Derivative Programmes.
The A330 MRTT has been selected by the air forces of Australia, the United Kingdom, Saudi Arabia and the United Arab Emirates, and was chosen last year by the U.S. Air Force for its recapitalization of the service’s aging tanker fleet.
Media contact:
José María Palomino Communications Airbus Military Tel.: +34 91 585 77 89
Barbara Kracht Communications Airbus Military Tel.: +34 91 585 77 89
Eduardo Galicia Communications Airbus Military Tel.: +34 91 585 77 89
England Looking At Harder Line On Typhoon Buy
Filed under: Business Line, Companies, Contract Additions, Countries, EADS, England, Events, Germany, Military Aviation, Restructuring, Saudi Arabia, Spain, production program
Update — It was reported on Monday that the expected penalties and cancellation fees related to the UK’s buy in this round for the advanced aircraft will be over two billion pounds ($3 billion or so). This amount of money may make it more feasible to purchase the aircraft. While penalties are capped at the two billion figure there would still be termination fees. The economic effect of ending the program would also be substantial as there are several thousand jobs in the UK that rely on the program. The decision on this effort will not be easy for the Brown Government already facing a dire financial situation.
As we wrote about previously England’s budget struggles are causing it to rethink the upcoming contract buy of Typhoon fighters. If England does not participate fully in the third option then either the other countries will have to renegotiate the prices most likely to a higher number. England does have the option of ending their participation in the multi-national contract but would have to pay substantial termination fees that might end up higher then the cost of buying the aircraft.
The interesting thing is that it was England worried that some of the other participants may have left the contract that worked to have the high fees put in the contract. England is trying a third option where most of there scheduled buy will go to Saudi Arabia rather then to them allowing some savings. The Brown government like Obama in the U.S. is facing trying to pay for a large economic stimulus package as well as increased social spending. This has put pressure on a military budget already suffering from the combined campaigns in Iraq and Afghanistan. Like Obama is doing one way to save money is to end large procurement programs to save defense spending. They can either be stopped in development or less units can be bought, like the F-22. Unfortunately the less you buy the more they cost so total savings may be limited.
If England does renege on this contract there will be significant future issues with their partners and for the Eurofighter consortium.
UK Budget Woes Affecting Eurofighter
Filed under: BAE Systems, Business Line, Companies, Contract Additions, Contract Awards, Countries, EADS, England, Events, Germany, Italy, Military Aviation, Restructuring, Spain, development program, production program
The Eurofighter program is coming up for the next production buy. England, Germany, Italy and Spain are all planning to buy new aircraft with this batch. The original plan was to buy just over one hundred aircraft for about $180 billion. England was expected to buy sixteen. Now England’s budget problems is leading the Brown government to consider not participating in this purchase.
This decision is being fought by the other nations as a reduction in the quantity will increase the price for all of the them. England wants to negotiate a cheaper price for the aircraft. It doesn’t help that a great deal of high quality manufacturing jobs are based on this program across Europe. Few countries can face more unemployment in the current world economic situation.
The Eurofighter TYphoon is facing much of the same opposition that the F-22 is with some saying it is not the type of aircraft needed for today’s war on terror. The fact that it is the most expensive aircraft in Europe also is not helping. The European aviation industry is struggling right now with the A400M program and a possible cancellation of that. For England to back out of its Eurofighter commitment would only add to the problems.
Support for the A400M from Spain and Turkey
Filed under: Business Line, Companies, Contract Awards, Countries, EADS, England, Events, France, Germany, Military Aviation, Restructuring, Spain, Turkey, development program, logistics, production program
The Guardian is reporting that these two countries have affirmed their support for their orders from EADS for the new transports. Unlike France, the UK and Germany who have openly discussed canceling or modifying their orders Spain and Turkey have said that they still want the new aircraft. The A400M will be assembled in Spain. There two orders make up about 25% of the planned fleet of the aircraft. It has been decided that the seven NATO countries who have bought the plane will talk every two weeks or so to review the status of the program. The decision on whether EADS would have to pay back the customers due to the two year delay in the program has been extended to May 1st. EADS feels that they need relief both in time and price and really need to renegotiate the contract to account for this long delay. Either canceling the contract or making EADS pay the penalties would be a great blow to the company.
EADS To Report Today
Filed under: Boeing, Business Line, Companies, Countries, EADS, Earnings, Events, France, Germany, Military Aviation, Northrop Grumman Corp., development program, logistics
One of the two largest aerospace companies in the world will report its annual earnings tomorrow. EADS is supposed to report a profit, although it has the A400M program hanging over its head. The troubled military transport now over two years late may cause a massive charge to the 2008 earnings Bloomberg.com writes. The way the original contract is written any of the seven customers can cancel the aircraft in the near future. If this program fails it will be the second major blow to the company in three years following the A380 delays and the financial hardship that caused the company. EADS had restructured in in a bid to fix the issues with their premier military program. EADS is also waiting to hear about the KC-X contract in the U.S. A contract that it had won in partnership with Northrop Grumman that was overturned on a protest by Boeing. EADS’ earnings for 2008 will be interesting, as there was so much potential there for a recovery from the losses caused by the delays in the A380.
EADS Has Good Quarter
Filed under: EADS, Earnings, France, Germany, Military Aviation, Restructuring, commercial aviation, logistics, production program
EADS announced that in the third quarter it was able to make a profit compared to the large losses last year. The Wall Street Journal has the story. Despite ongoing issues with two of its key programs – the A400 military transport and the A380 airliner – the company made about $800 M. The company found that its restructuring cost less then expected and cost reductions in the construction of its commercial aircraft also helped. Read more
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