Sponsored by
https://ieeinc.com/
————————————————————————
EUROPE
08 Feb 24. Sweden seeking to replace ARTHUR weapon locating system. The Swedish Defence Materiel Administration (FMV) has issued a request for information (RFI) on 5 February for the replacement of its Saab ARTHUR (ARTtillery HUnting Radar) weapon locating system (WLS). According to the RFI provided to Janes, the Swedish Armed Forces seeks a future WLS capability to support indirect fire and counter-fire operations at the brigade level. The system must also “include the capability to sense and warn friendly forces of threats originating from indirect fire. As such, it must be integrated into the C2 [command-and-control] and ISTAR [intelligence, surveillance, target acquisition, and reconnaissance] systems of the land forces”, the RFI said. Along with this, the new WLS must be able to sense, detect, classify, and localise unmanned aerial vehicles (UAVs) and counter such threats, the RFI added. (Source: Janes)
07 Feb 24. OCCAR director lobbies European defence ministers to join its programmes. Europe’s defence procurement executive eyes the Nordic region, where countries with a history of self-reliant manufacturing may help in scaling rearmament. Given the tumultuous militarisation of Europe since Russia’s full-scale invasion of Ukraine nearly two years ago, the Organisation of Joint Armament Co-operation – often referred to by the French abbreviation ‘OCCAR’ – is seeking new participating nations in the programmes it facilitates.
Director of the organisation’s executive administration, Joachim Sucker, visited the Swedish capital Stockholm on 6 February 2024 to coax the Nordic country’s national armaments director Gorgen Martensson.
Sucker explained that his visit was part of an “information campaign” requested by the six main OCCAR member states – Belgium, France, Germany, Italy, Spain and the UK – approaching possible European partners to sign agreements with the organisation.
Confidence in OCCAR’s efficiency is reflected in the considerable growth of platforms the agency has taken on in recent years: from 16 in 2022 to 25 in 2024. Alongside that, the agency’s operational budget also increased by more than €1bn ($852.59m).
OCCAR’s growing portfolio includes the Boxer armoured vehicle, of which it has delivered 688 units; the A400M transport aircraft, having delivered 120 units by the end of last year; the FREMM multi-mission frigates, delivering 16 out of 18 ships; and FSAF-PAAMS surface-to-air missile defence systems, for which it made its 14th contract amendment this week.
Currently, Sweden is one of ten ‘non-member participating states’ within the OCCAR structure. This designation contrasts with the six aforementioned ‘member states’. A third classification includes nations with ‘observer’ status including Australia, Japan and Brazil.
Bottom of Form
Sucker acknowledged OCCAR’s existing co-operation with Sweden, although he hopes that this engagement will take a step further in signing another framework and security agreement.
At the moment, the Swedish defence prime Saab participates in OCCAR’s REACT project, wherein it is designing an airborne electronic attack capability alongside Indra, Elettronica and Hensoldt.
Likewise, the Swedish arm of the space systems supplier Beyond Gravity also participates in one of OCCAR’s most promising programmes, such as its attempt to produce an endo-atmospheric (within Earth’s atmosphere) hypersonic defence interceptor (HYDEF).
What can OCCAR offer Sweden?
The Swedish defence market is highly indigenous with global industry players such as Saab producing a range of globally coveted systems. According to intelligence from GlobalData, a leading data analytics company, the country’s fastest growing segments are fixed-wing aircraft, missiles and missile defence systems, as well as naval vessels.
As far as OCCAR is concerned, Sweden’s defence output in these sectors will provide greater enhancement of some of its programmes.
However, judging from GlobalData’s account of the nation’s equipment list certain OCCAR programmes may support the Swedish Armed Forces in replacing some of its enduring systems, particularly in the land domain.
Currently, the Swedish Armed Forces are upgrading or replacing existing platforms with modern, more capable variants. The air force will receive 70 new Gripen fighter aircraft, and the Swedish navy is replacing older models of submarine with the new Blekinge-class and modernising one of the Gotland-class to increase the fleet size from four to five.
Other programmes include sensor upgrades for the S100D airborne command and surveillance system, and a mid-life upgrade (MLU) for the army’s Patria armoured fighting vehicles.
Why target the Nordic region?
“OCCAR is a very useful office for collaborating European defence projects, and in current times I’m sure they would be very keen to deepen ties with new Nordic Nato allies, both Sweden and Finland,” GlobalData Defence Analyst James Marques indicated.
General view of Nato Foreign Ministers session with Finland and Sweden, 31 March 2023. Credit: Nato.
“Hungary is holding up Sweden’s membership still and perhaps they planned to do this after Sweden’s accession, but there is a growing sense of urgency in European defence given shaky situation in Ukraine and possibility of US fully losing the plot,” he added.
“A history of neutrality means Sweden and Finland are experienced and self-reliant manufacturers, who likely have the knowledge and skill base to assist in scaling rearmament, perhaps basic items such as shells, but also technical know-how in a lot of growing European programmes.”
(Source: Google/airforce-technology.com)
07 Feb 24. Lockheed Martin pushes C-130J for Sweden. Lockheed Martin is pushing its C-130J Hercules airlifter for Sweden, announcing a memorandum of understanding (MOU) with national industry on 6 February. With the Swedish Air Force (SwAF) scoping out a replacement for its ageing C-130H Hercules fleet, Lockheed Martin has launched its C-130J-30 offering with an MOU signed with MilDef, a Stockholm-based provider of ‘tactical IT solutions’.
“Lockheed Martin and MilDef announced a memorandum of understanding today to strengthen aerospace collaboration through Lockheed Martin’s C-130J-30 Super Hercules tactical airlifter offering for the Swedish Air Force. Through this partnership, the two organisations will identify partnership opportunities where MilDef solutions and expertise can be integrated into Lockheed Martin’s global aerospace and defence ecosystem,” the manufacturer said.
The SwAF operates six C-130Hs (two of an original eight were mothballed in 2015), which are the oldest still flying in Europe, having been received from 1965. In 2017 the service decided against procuring a new transport aircraft type at that time, opting instead to upgrade the C-130Hs. (Source: Janes)
06 Feb 24. Greece announces plans for joint production of Constellation-class frigates. Greek Minister of National Defence Nikos Dendias has announced that the country is interested in the joint production of a modified version of the Constellation-class frigates being built for the US Navy (USN). Dendias’ comments were made following a meeting with the defence minister of the Republic of Cyprus on 29 January.
“On 16 January we received a letter from the US Navy accepting in principle our interest in the co-design and co-production of up to seven new Constellation-class frigates in Greek shipyards,” Dendias said. If an agreement could be reached, Dendias added, Greece would be able to participate in the programme from the beginning and could accordingly contribute to designing and customising the ships according to the needs of the Hellenic Navy.
The Constellation-class frigate design is derived from the Italian Navy’s Bergamini-class FREMM (Frégate Européenne Multi-Mission) frigates. Four ships are being built for the USN at Fincantieri Marinette Marine, with total procurement of up to 16 further units planned. (Source: Janes)
02 Feb 24. Germany blames contractor problems, immature technologies for Eurodrone delay. Germany has cited problems between leading contractors and immature technologies for delays to the Eurodrone project. In its Annual Armaments Report published on 31 January, the German Bundeswehr said that ongoing co-ordination between contractors, coupled with technologies that are not yet mature, has already caused the preliminary design review (PDR) to be delayed, and could impact the critical design review (CDR), which is the milestone at which the project could be cancelled entirely. (Source: Janes)
USA
08 Feb 24. US Army spent billions on a new helicopter that now will never fly. The U.S. Army is ending its latest effort to build a new armed scout helicopter, known as the Future Attack Reconnaissance Aircraft, an abrupt change of direction that marks one of the department’s most significant program cancellations of the last decade. The service had already spent at least $2bn on the program and had requested another $5bn for the next five years, according to budget documents. The helicopter program arrived in 2018 with lofty expectations. Army leaders hoped it would serve as a model for new acquisition approaches for its most complex and most expensive weapon systems. Prototypes from Bell Textron and Lockheed Martin’s Sikorsky were expected to fly later this year. And, perhaps most importantly, the aircraft was slated to provide a long-needed armed scout solution after decades of starts and stops. But Thursday, the Army’s top acquisition officials described a new vision and major aviation overhaul. In addition to ending FARA, the Army plans to get rid of its entire Shadow and Raven unmanned aircraft fleets, said Doug Bush, the service’s acquisition chief. It will also stop fielding its new replacement for UH-60 Lima-model Black Hawk utility helicopter — the Victor-model — to the Army National Guard and instead field UH-60 Mike-models, the latest variant used in the active force, Bush said.
Finally, the service will delay procurement of its next-generation helicopter engine, which was set to be used in all UH-60s, AH-64 Apache attack helicopters as well as to power FARA.
Instead, Bush said the Army will spend the newly available money on Black Hawks, the latest variant of the CH-47F Block II Chinook cargo helicopter, the Future Long-Range Assault Aircraft and research and development efforts to accelerate its unmanned aerial reconnaissance capability.
Gen. James Rainey, an acquisition leader overseeing the program, said he doesn’t view the cancellation “as a failure” for Army Futures Command, the Austin, Texas-based office heading the service’s modernization efforts.
“We are making great progress, we have momentum, the overwhelming majority of our signature modernization efforts are either on time or ahead of schedule and are starting to translate into capabilities,” he told reporters Thursday.
Top priority
The Future Attack Reconnaissance Aircraft, or FARA, was meant to fill Army aviation’s No. 1 mission gap: armed reconnaissance. For the last 10 years, following the retirement of the Vietnam-era OH-58 Kiowa Warrior helicopter, which long performed that mission, the service has relied on the more expensive AH-64E Apache attack helicopter paired with the Shadow unmanned aircraft system.
The Army has already twice canceled potential replacement efforts for the armed scout. In 2004, it terminated the Comanche program after spending $9 billion to produce two prototypes.
Four years later, it canceled the Armed Reconnaissance Helicopter.
In the last attempt before FARA, the service asked industry to bring commercial off-the-shelf aircraft to a “fly-off” to fill the armed scout mission, but the Army walked away from the effort in 2013, finding nothing that met all of its requirements.
Five years ago, the service unveiled Army Futures Command, a new command meant to improve the service’s modernization program track record. FARA quickly became a signature effort of the command, which was tasked with outfitting a fully modernized force by 2030.
At the same time, the Army has been advancing a second helicopter program, the Future Long Range Assault Aircraft. Bell Textron won the contract to provide its V-280 tiltrotor aircraft for the program at the end of 2022.
Skeptics have wondered if the Army can successfully procure two aircraft simultaneously, but service leaders have said they have no choice.
Asked which program he’d choose if future budgets didn’t allow for both, Maj. Gen. Wally Rugen, then director of AFC’s Future Vertical Lift cross-functional team, said the efforts are “not a ‘want to have,’ it’s an imperative.”
“Modernization is an imperative, so as long as that remains the Army priority, which I believe it will, then we’re going to continue to find ways to execute these programs,” he told Defense News in 2021. “I don’t see it as a choice.”
In a statement Thursday evening, Sikorsky said its prototype, the X2, offers “speed, range and agility that no other helicopter in the world can match.”
“We remain confident in X2 aircraft for U.S. and international mission needs now and in the future,” the statement read. “We are disappointed in this decision and will await a U.S. Army debrief to better understand its choice.”
Vision for vertical lift
Army officials said the service still needs armed reconnaissance — but the technology has changed. The service will no longer rely on a manned helicopter to execute the majority of armed scout missions and will instead look to unmanned aircraft and sensors to conduct those missions.
“The future is going to be about who can properly integrate humans and machines effectively, how do you optimize those two things,” Rainey said.
In a statement, Army Chief of Staff Randy George said the service was influenced by the battlefield in Ukraine. It has seen there “that aerial reconnaissance has fundamentally changed.”
“Sensors and weapons mounted on a variety of unmanned systems and in space are more ubiquitous, further reaching, and more inexpensive than ever before,” he added.
The service plans to conclude FARA prototyping activities at the end of fiscal 2024, which will give the service and industry a chance to finish up technology development transferable to other programs.
While Bush would not specify exactly how much money would be available to spend on other efforts to strengthen the Army’s aerial tier, he said the Army plans to spend more on reconnaissance UAS that are more capable of surviving high-end fights, including the Future Tactical UAS and launched effects.
The Army’s inventory of small, runway independent UAS includes more than 575 Shadows and 19,000 Ravens.
The service had long planned to retire a portion of its Shadow fleet, grown during the counterinsurgency years. Raven, a small unmanned aircraft, is also an aging platform and the service considers it no longer effective in multidomain operations against near-peer adversaries.
The Army has sought to replace Shadow with a Future Tactical UAS. In 2022, after a roughly four-year competition, the Army awarded AeroVironment an $8m contract to provide its Jump 20 system as an interim FTUAS capability for a single brigade.
To buy more, the Army held a second competition and, about a year ago, chose five companies to advance. It quickly eliminated incumbent AeroVironment. By September 2023, the Army whittled the group to just two companies — Shadow manufacturer Textron and Griffon Aerospace. Both are still building prototypes in hopes of winning an FTUAS production contract.
According to Brig. Gen. David Phillips, program executive officer for Army aviation, the Army is planning to get FTUAS prototypes into operational users’ hands by FY25.
And the Army is pushing to award a contract for a short-range launched effect in early 2025, he said. The service has plans to acquire short, medium and long-range launched effects as part of its modernization push.
The FLRAA program will continue as planned, Bush said, and the Army will work to stay on track to field the first operational unit by FY30.
Making adjustments
With the absence of a second future vertical lift platform as part of the Army’s modernization plans, the service will commit more money to modernizing its current fleet.
The service wants a new multiyear contract to procure UH-60Ms beginning in FY26, when the current multiyear comes to an end, according to Bush.
After planning not to buy CH-47F Block II Chinooks for the active force to free up funding for FVL efforts in 2018, the Army is now reversing that decision and plans to formally enter production leading to future full-rate production, Bush said.
Meanwhile, the Army says it will curb its Victor-model Black Hawk utility helicopters, which feature digital cockpits and were intended to replace older Lima-model aircraft for the Army National Guard. Bush said the program experienced “significant cost growth.”
The Army has said it considered the V-model technology a stepping stone in its pursuit of a digital backbone for its FVL fleet, which will allow mission systems to seamlessly plug into the architecture of the aircraft.
Redstone Defense Systems won a contract in spring 2014 to take a Northrop Grumman-designed cockpit and integrate the technology into V-model prototypes. The Army then partnered with Corpus Christi Army Depot, Texas, to convert Lima-models into Victor-models at the rate of 48 aircraft per year, which some called too slow, as it would take roughly 15 years for the service to produce all 760 V-model aircraft to replace the L-models in the Guard.
Phillips said the Army has delivered 60 V-models to the Guard and plans to continue fielding through fiscal 2024. The service will provide the Guard Mike-model Black Hawks to fill out the fleet requirements instead.
The V-model experienced software reliability issues in its initial operational test and evaluation in 2019, which partly delayed the program. The program was further delayed when the Army was unable to reschedule a new operational test and receive certification to fly in national airspace during the early part of the coronavirus pandemic. The Army wrapped up its second initial operational test and evaluation of the V-model in summer 2022.
Bush said the Army still intends to buy its next-generation engine, but will delay production for an indefinite period. The effort, known as the Improved Turbine Engine Program, has already been running years behind schedule.
According to Phillips, there are six ITEP engines in tests, two with the FARA competitors and two more that will go into the first UH-60s in May for testing. (Source: Defense News)
09 Feb 24. Statement from Sikorsky, a Lockheed Martin company, on today’s U.S. Army announcement.
“To provide the U.S. military and its allies a decisive advantage to deter conflict now and in the future, there must be a transformational improvement in rotorcraft systems capabilities – and a strong engineering workforce that can strengthen the nation’s leading edge in rotorcraft innovation. With a $1bn investment, X2 aircraft offer speed, range and agility that no other helicopter in the world can match. We remain confident in X2 aircraft for U.S. and international mission needs now and in the future. We are disappointed in this decision and will await a U.S. Army debrief to better understand its choice.”
Additional Background:
- Sikorsky will continue to execute on its current programs, seek to capture new business and remain a vibrant part of the rotary wing industrial base and Connecticut economy.
- Black Hawk in the U.S. and international includes a Multi-Year XI production opportunity and new modernization opportunities that will keep the Black Hawk powerful, ready and relevant for decades to come.
- The CH-53K Heavy Lift helicopter is a major growth driver for Sikorsky with international interests. MH-60R Romeo continues to see international demand for maritime operations. Our customers continue to depend upon the Combat Rescue Helicopter, VH-92 and S-92 to support their critical missions.
*Please note that the UH-60V cockpit is developed by Northrop Grumman.
07 Feb 24. A-10 Pilot’s Compelling Case for Replacing Warthogs with Super Hornets. The U.S. Air Force wants to retire the A-10 Warthog, an aircraft I have flown for years around the globe, by the end of the decade. While many may think all of us in the A-10 community want to hold onto our beloved mount for dear life, that isn’t necessarily the case.
What many of us do want is a suitable replacement, of which there is none currently planned. This new aircraft should be relatively economical while also bringing additional capabilities to the fight, especially one in the Pacific against China. That aircraft should be the F/A-18E/F Super Hornet for a slew of reasons, some of which may be surprising.
Why The Block III F/A-18E/F Makes Sense
Overview
The Block III Boeing Super Hornet — also lovingly nicknamed the ‘Rhino’ — is a true multi-role, twin-engine tactical fighter with advanced data link, Infrared Search and Track (IRST), AN/APG-79 Actively Electronically Scanned Array (AESA) radar, and all in a 10,000-hour airframe. The Rhino is configured with robust landing gear for carrier-borne operations and a probe/drogue refueling system. It boasts 11 stations and serves as a threshold platform for future weapons. The Rhino is a 7.5G airplane with a maximum speed of Mach 1.6 and some reduced radar signature characteristics.
Why does that all matter?
In terms of looking for a replacement aircraft for the A-10C, the Rhino offers an airframe that can do much of what the A-10C does, particularly in a precision-guided munition employment sense. It offers similar loiter time, is able to fly at slower speeds when necessary, but can also fly much faster, making it more responsive when required — which is especially important when troops are in contact and air support is needed now. But the real plus of the Super Hornet is what additional capabilities it brings over the A-10C.
With the AN/APG-79 AESA, the Super Hornet has one of the world’s top performing radars, capable of tracking and employing weapons beyond visual range (BVR), producing high resolution Synthetic Aperture Radar (SAR) maps, and sharing data over advanced data links. The Rhino comes ‘standard’ with not only modern Link 16, but Tactical Targeting Network Technology (TTNT) and Distributed Targeting Processor-Networked (DTP-N), both enhancing data throughput and enabling sensor fusion, making the Rhino one of the most capable and connected fighters on day one of any fight.
The addition of a centerline-mounted IRST pod gives the Rhino a long-range passive detect capability against even low observable (stealthy) aerial adversaries. It also has wide area cockpit displays to make the best of all this information.
The Super Hornet has also tested LITENING Targeting Pods, something A-10C pilots are very familiar with. Having the ability to view LITENING in color on the large area display would be a huge plus for air-to-ground (A/G) targeting pod work. The Kuwaiti Air Force has also made efforts to integrate SNIPER targeting pods. Both are good options with their own advantages.
The 7.5G limit of the aircraft conveniently aligns with the centrifuge profile that every A-10C pilot undergoes — no pilot converting from the A-10C to the F/A-18E/F would have to requalify in the centrifuge, saving time and money for the USAF.
The robust landing gear and tail hook, as well as the drogue refueling capability of the Rhino make it ideally suited for austere and forward operations in any theater, but especially the Pacific.
As a vignette, consider Super Hornets based forward, sitting Combat Search and Rescue (CSAR) alert with HC-130s as part of an island hopping Agile Combat Employment (ACE) team. Super Hornets could take off with reduced fuel loads, maximizing short field performance, then refuel enroute to their operating location from the same HC-130s or other aerial refueling-equipped C-130 variants or MQ-25 drones below the radar horizon.
Even for standoff strike or anti-surface warfare, and other missions, a forward deployed aerial refueling equipped C-130 could immediately refuel the Super Hornet loaded with weapons once airborne to maximize its short field abilities and combat radius.
The Rhino can then recover after its mission with the help of its hook and a mobile arresting gear, making very short field operations not just more achievable, but also safer. This is something the Marines are increasingly training to do, leveraging their carrier-capable types’ unique short-field abilities — ones that Air Force aircraft lack, aside from for emergency purposes. These concepts already resonate with A-10C pilots as squadrons typically look for opportunities to perform landings on austere airfields (and is accomplished during each A-10 Weapons School class).
All of this would enable independent distributed operations closer to the forward edge, causing major issues for adversary calculus and opening up new, survivable tactical opportunities.
Seize The Day
The current geopolitical climate is one of great uncertainty. As a military and as a nation, we must take full advantage of the opportunities we have. The Super Hornet and its production line are one of those opportunities.
The Rhino’s blend of flight characteristics, weapons, sensors, and world class radar make it a force to be reckoned with – even for fifth generation aircraft. Above even that, it is the forward-operating tactical jet the Air Force is saying it needs without actually stating it. It simply can operate out of airfields existing USAF fighters cannot.
So, this is a rare case in which we have the right platform, whose development has already been paid for in full, with production capacity at our fingertips. It has proven combat capability, comparatively high-efficiency, is packed with updated technologies, and is serving in the multiple hundreds worldwide.
It is just sitting there ready to step into this new role.
Let’s keep the community of counter-land experts alive. Let’s invest in known-quantity production lines, and let’s bring the F/A-18E/F Super Hornet to the U.S. Air Force.
Author Patrick “BURT” Brown is an Air Force weapons officer with more than 2,000 hours in the A-10C, 690 of which have been in combat in Syria, Iraq, and Afghanistan. He has served as an instructor at the USAF Weapons School, as well as abroad in the Office of the US National Military Representative (US NMR) to Supreme Headquarters Allied Powers Europe (SHAPE) as the US liaison to the North Atlantic Treaty Organization (NATO) for air and space operations. (Source: UAS VISION)
02 Feb 24. Lockheed Martin awarded NGRC study contract. The NATO Support and Procurement Agency (NSPA) has awarded Lockheed Martin its third study contract related to the Next Generation Rotorcraft Capability (NGRC) programme. Announced on 31 January but awarded on 13 December 2023, the study contract will see Lockheed Martin’s Sikorsky subsidiary identify, analyse, and compare open system architecture (OSA) concepts that could potentially fulfil the NGRC capability requirement. The outcome of the study will help inform future platform concepts. With a required cruise speed of 220 kt, speed is the defining objective of the NGRC effort. As noted by Andy Adams, vice-president of Future Vertical Lift at Sikorsky, the company will leverage its X2 rotorcraft technology as part of its NGRC OSA work. (Source: Janes)
REST OF THE WORLD
08 Feb 24. Legislation aimed at increasing South Korea’s import-export lending to support huge new defence sales has stalled amid partisan deadlock ahead of a divisive parliamentary election, officials and analysts said.
South Korea’s ruling and opposition parties have both introduced bills to boost the state bank’s equity capital to 25 trn-35trn won ($19bn-$26bn), raising the lending limit to 10 trn-14trn won, as the country seeks to expedite Poland’s $22bn weapons purchase.
The sale is a key part of South Korea’s plan to become the world’s fourth-largest defence exporter by 2027. But under current law, the Export-Import Bank of Korea cannot lend more than 40% of its roughly 15 trn won of equity capital, or about 6trn won, to a single borrower.
The state bank already provided about 6trn won in credit during the first phase of the deal with Poland, South Korea’s biggest-ever weapons sale.
Legislators have not yet agreed to move any of the limit-raising bills forward before an extraordinary parliament session that starts Feb. 19, because of political skirmishing before an April 10 general election.
“There won’t be a chance to pass the bill for at least some months (if not passed in February),” said a parliamentary official, who was not authorised to speak on the matter and declined to be identified. “Given the involvement of sensitive export talks and schedules, it needs to be now.”
A change in Poland’s leadership last year raised questions over whether Warsaw would scrap previously signed procurements. But such a move is unlikely because it could cause massive diplomatic fallout, said Abhijit Apsingikar, an aerospace and defence analyst at GlobalData.
If there is no credit line to finance procurement from South Korea, however, it could put the unsigned procurement of 308 K9 howitzers and 820 K2 Black Panther tanks in jeopardy, he said.
An audit of modernisation contracts is under way at the Polish Ministry of National Defense, taking into account the needs of the Polish Army and the methods and sources of their financing, Poland’s defense ministry said in a statement to Reuters.
“We are in contact with all bidders with whom we already cooperate, as well as with those who are interested in cooperation within the arms industry,” the ministry added.
DEFENCE DEALS AT RISK
President Yoon Suk Yeol has prioritised big-ticket exports that need financing, such as defence and nuclear power plant sales, as he enters the third year of his five-year, single-term presidency.
South Korean defence firm LIG Nex1 won a $3.2 bn deal to export a mid-range surface-to-air missile defence system to Saudi Arabia, South Korea’s Ministry of National Defence said on Tuesday.
“South Korea’s economy relies heavily on exports, and defence exports is a growing to be key part of it, so it is essential to raise that capital limit to support major export deals,” said a government official with direct knowledge of the matter, speaking on condition of anonymity because of the sensitivity of the issue.
In July 2022, Poland reached a basic agreement with South Korea to buy arms that included 48 FA-50 fighter jets from Korea Aerospace Industries, 672 K9 howitzers from Hanwha Aerospace and 1,000 K2 tanks from Hyundai Rotem.
The next month, Poland signed contracts for the first phase of the agreement, worth 17trn won, for which arms including 180 K2 tanks and 212 K9 howitzers are being produced and delivered.
But the second phase, estimated by Korean media to be worth about 30trn won ($22.52bn), has yet to be completed, partly because the Polish government has taken issue with the lack of funding from state-backed export credit agencies (ECAs), said four defence sources with knowledge of the matter.
Seoul has reduced Poland’s financing hurdles with five local banks willing to provide a syndicated loan, but the Polish government prefers ECAs – they are seen as more stable because they have government backing, and have lower interest rates, the sources said.
At least one financing agreement for Hanwha Aerospace’s second contract hasn’t been reached, according to the sources.
Under the contract, the financial agreement with Hanwha must be reached by the end of June 2024, the sources said. They declined to be identified because they were not authorised to speak to the media.
Hanwha Aerospace declined to comment. ($1 = 1,331.9700 won) (Reporting by Joyce Lee and Cynthia Kim; Additional reporting by Pawel Florkiewicz; Editing by Josh Smith and Gerry Doyle) (Source: Yahoo!/Reuters)
07 Feb 24. Comtech (NASDAQ: CMTL), a global technology leader, today announced its Canadian subsidiary was invited by Innovation Canada, a sector of Innovation, Science and Economic Development Canada, to join a select group of companies participating in the Accelerated Growth Service (AGS) program. The AGS program offers support to a number of high-growth, high-potential, qualifying businesses across Canada.
As part of the program, Comtech will gain access to key government services such as financing and export opportunities. The AGS program will also provide Comtech with a personalized team of government experts to support the company’s growth plans and help identify new government programs that will help Comtech capture near and long-term business opportunities.
“Being selected by the Canadian government to join this exclusive group of companies participating in the AGS program further demonstrates the benefits of our One Comtech transformation and the trust of our government partners,” said Ken Peterman, President and CEO of Comtech. “After moving through the selection process, Innovation Canada and its government partners recognized the value of Comtech’s strategic growth plans and is now working with our team to capture new opportunities that will enable Comtech to deliver blended solutions and services that can usher in a new era of smart-enabled connectivity when and where it matters most. Comtech has partnered with commercial and government customers across Canada for over two decades, and we are looking forward to working with the AGS team to continue accelerating the adoption of new technologies in Canada and delivering positive economic impacts across the country.”
With multiple offices in technology corridors across Canada, Comtech designs, develops and delivers software-defined, multi-orbit, and scalable satellite solutions and ground systems to some of the largest satellite service providers, enterprises and governments in the world. Building on over 20 years of differentiated expertise in Canada’s satellite industry, Comtech is committed to expanding operations, accelerating innovation, and enhancing the space economy across the country. In addition, Comtech was recently recognized for its contributions supporting the first deployment of a next-generation 911 system in Canada.
02 Feb 24. Major Brazilian bank ceases financing for local defense industry. A leading Brazilian bank will no longer use its own resources to finance defense companies, it announced this week.
Banco do Brasil is a key player for the country’s federal government, which owns half of the business. With assets exceeding $1.4trn reals (U.S. $283bn), the bank plays a significant role in the domestic industry by guaranteeing exports for companies. It is also the second-largest bank in Latin America, according to S&P Global.
“Credit grant decisions are always guided by credit policies and social responsibility,” the bank told Defense News. “In compliance with its internal governance and sustainability instruments, which are recognized as a market benchmark, BB has decided not to contract, with its own resources, new operations for this sector.”
This move affects part of the funds from Proex — a federal government mechanism that provides resources for Brazilian companies exporting goods and services — which is managed by the bank. Part of the money is supplied by Brazil’s National Treasury, and the rest by Banco do Brasil.
“The measure is quite serious,” a chief executive of a defense company told Defense News on the condition of anonymity due to the sensitivity of the topic. “This decision decrees that defense companies on national territory will no longer have the capacity to export.
Financial tools are necessary for exports, the source added, including during “post-shipment” operations, where clients demand guarantees.
“Here, Proex does not act; this guarantee only occurs with Banco do Brasil’s resources,” the executive said. “And often clients demand these guarantees in the initial purchase and sale contracts. Without this, it’s impossible to close contracts. The effect of this measure can be catastrophic.”
The CEO was unable to identify alternative credit options or guarantees for local defense companies.
Defense News contacted three Brazilian defense companies — Mac Jee, Avibras and Mectron — but they declined to comment.
In a statement to Defense News, the Defense Ministry said Minister José Mucio Monteiro met with Banco do Brasil’s president, Tarciana Medeiros, to discuss the issue.
According to the ministry, the bank’s president promised to study a possible expansion of the scope of Proex to meet the credit needs of the defense sector.
The ministry also reported it has worked with BNDES, a Brazilian state development bank, as well as the Ministry of Development, Industry, Commerce and Services. (Source: Defense News Early Bird/Defense News)
————————————————————————
Since 1946, Industrial Electronic Engineers, IEE, has specialized in the design, test, support and fielding of display products for use in demanding military and aerospace applications throughout the world. IEE has developed an extensive product portfolio that today includes enhanced flat panel displays, smart displays and handheld devices.
From rapid prototyping of custom designs to full-scale production runs, IEE, produces displays with advanced features like low-latency video processing, high-bright and NVIS backlighting, and lightweight rugged enclosures. Their SWaP-C products employ the latest lightweight composite materials; low power, high performance integrated ARM processors; standard Ethernet and USB communication, in a low cost, highly producible design.
In-house California facilities include optical bonding, clean rooms for display assembly, a dark room for optical measurements and environmental chambers for pre-compliance and customer acceptance testing. On-site manufacturing includes PCB assembly and flow soldering. IEE has manufactured handheld, in-vehicle, airborne and naval LCD displays for all military branches as well as leading aerospace firms both domestically and internationally.
IEE is ISO 9001:2015 and AS9100D certified.
IEE’s Advantage:
- Direct control of critical process steps that reduce cost, decrease production lead times and improves life-cycle management
- Unique advantage to serve to both smaller quantity, highly custom displays needs as well as high volume production outputs
- Expert in delivering the best value in form and fit replacement by modifying existing COTS products to meet legacy requirements
- Leading the next generation avionics efficiencies by leveraging open architectures and common software standards
- Field-proven, pre-engineered displays minimize lead-time and non-recurring engineering costs.
————————————————————————