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18 Sep 07. EADS is set to commit to a long-term strategic arrangement with the British Government which acknowledges the company’s contributions at the heart of the UK’s advanced technology industrial base. The agreement will enhance and develop the relationship across all parties’ shared business interests.

Uniquely, four government departments (Department for Business, Enterprise and Regulatory Reform; Department for Communities and Local Government; Department for Innovation, Universities and Skills; and the Ministry of Defence) are signing the ‘Strategic Framework Arrangement’ (SFA) which demonstrates EADS’ strategic importance and commitment to Britain across a number of diverse domains representing EADS’ enormous UK industrial presence.

To reflect the importance of the agreement, the SFA will be signed by Louis Gallois, EADS’ Chief Executive; Lord Drayson, Ministry of Defence and Department for Business, Enterprise and Regulatory Reform (representing both MOD and DBERR), Ian Pearson MP, Minister of State for Science and Innovation and Parmjit Dhanda, Parliamentary Under Secretary of State for Communities and Local Government.

Lord Drayson said: “I am delighted that we have been able to sign the Strategic Framework Arrangement. It is a significant step forward in developing the relationship between EADS and HMG and will allow us to conduct business together more effectively in the future.”

EADS CEO Louis Gallois said: “The signing of the Strategic Framework Arrangement represents a hugely important milestone in EADS’ relationship with the UK Government. Uniquely for an aerospace and defence company we have four government departments co-signing this Arrangement. I am extremely positive that the SFA will help structure and invigorate our existing strong and healthy relationship with the government into the future.”

With a UK workforce of nearly 15,000, an annual turnover of £2.1 billion and a future order book of business approaching £12.4 billion, this country is host to many of EADS’ key activities. The company is custodian of the UK’s civil aerospace heritage and future through its 100 percent ownership of Airbus, the world’s largest civil aircraft manufacturer. Airbus UK is EADS’ centre of excellence in wing design and a global leader in manufacturing and technology development. EADS Astrium is the UK’s largest space company and a world player in telecommunications and radar satellite technology – leading an industry with productivity four times the national average and growing four times as fast as the economy as a whole. Paradigm is the world’s first commercial provider of military satellite communications services; EADS’ cryptographic, test & services and homeland security experts in EADS Defence & Security are world-renowned and MBDA is a leader in missile systems with cutting edge research and manufacturing facilities here in the UK.

The SFA will directly lead to the development of a joint approach to improving performance and aligning strategic direction, being underpinned – in respect of the MOD – by the principles of the Defence Industrial and Technology Strategies and enacted via the Key Supplier Management process. This is key to maximizing future opportunities in the UK for technological and business excellence, innovation and investment, and to the delivery of capability to UK government customers and value to shareholders. EADS’ commitment to research and development in UK was demonstrated by the recent launch of the EADS UK Innovation Works in conjunction with a number of universities, research centres and government bodies.

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