BAE SYSTEMS LAND& ARMAMENTS RESTRUCTURING
23 Jan 09. The BAE Systems Land & Armaments business is being restructured to align the organisation with the global strategy completed in the 2008 Review. It will give the group increased focus on the business priorities of delivering to customers, enabling global growth and improving operational performance. The new organisation becomes effective from 1 Feb, 2009.
The restructuring results in four business groups:
* U.S. Combat Systems – This business will be focused on the US customer and will be comprised largely of elements from the former Ground Systems and Armament Systems businesses
* Global Combat Systems – This business will be focused on our global customers and will be comprised of the former Land Systems businesses based in the United Kingdom as well as BAE Systems AB in Sweden
* Global Tactical Systems – This business will be focused on providing tactical vehicles to customers around the world and includes our former Mobility and Protection Systems’ Medium /Heavy vehicles business in Sealy, Texas and our Land Systems South Africa business
* Security & Survivability – This business will provide survivability and support services around the world and includes the former Mobility and Protection Systems’ Vehicle Armor, Individual Equipment and Occupant Protection businesses
In the UK, the new business, Global Combat Systems will be formed through the combination of Land Systems Weapons & Vehicles, Land Systems Munitions and BAE Systems AB in Sweden. David Allott will be the Managing Director of the new business, which will be headquartered in the UK.
Weapons & Vehicles has 2000 employees across 9 sites in the UK, 1 in the USA and a 50:50 JV in France with Nexter – CTAI. Weapons & Vehicles designs, manufactures, integrates and supports military weapon & vehicle systems. Products include Challenger 2, Warrior, Bulldog, Titan, Trojan, Terrier, Panther.
Munitions has 1700 employees across three cores sites and three additional locations in the UK and is responsible for designing, developing and manufacturing a wide range of munitions for the UK MOD and armed forces around the world. It is currently in the process of transforming its business in partnership with UK MOD under the MASS (Munitions Acquisition – the Supply Solution) partnering agreement.
BAE Systems AB is made up of Hägglunds, Bofors and C-ITS. It has 1,800 employees operating across 5 locations. The Hägglunds business designs, manufactures and markets military vehicle systems, including the SEP 6X6 and 8X8 as well as the CV90 series of vehicles. Bofors develops, markets and maintains smart weapon systems. C-ITS delivers training, education and simulation applications as well as advanced solutions for C4I applications.
The key points from this are:
L&A
* The restructuring is to complete the transformation of Land & Armaments from a confederation of acquired international businesses into a truly global business. Multiple strategic acquisitions in the land systems sector included United Defense in 2005 and Armor Holdings in 2007. The operating group now has more than 20,000 employees and facilities at over 55 locations worldwide.
Global Combat Systems
* The new Global Combat Systems business will enable us to unite the European land sector businesses to provide a broader, stronger capability to all our customers, particularly the UK MOD and Swedish FMV. We expect the realignment to yield real synergies across the European businesses, which will allow us to offer better solutions to customers across the land sector.
* Global Combat Systems will be organised to enable growth and better service to customers. It will strengthen our ability to offer the full range of L&A capabilities to our customers. This will give us a strong basis on which to build a European business for military vehicles, artillery and munitions.
* Initially Global Combat Systems will be Europe-ba