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19 Sept 24. NMS UK announces Leamington Spa as home of new strategic manufacturing hub
- Specialist defence manufacturing firm, NMS UK, announces Leamington Spa as the home of its new production facility, with plans to create up to 150 highly-skilled jobs over the next three years.
- Site to focus on the production of protected patrol vehicles for the UK defence industry and key international markets.
- New facility to support resilience of UK defence industry’s supply chain for protected patrol vehicles.
- Announcement made during biennial defence industry exhibition, DVD2024.
Specialist defence manufacturing firm, NMS UK, has chosen Tachbrook Park, Leamington Spa in Warwickshire as the home of its new production facility, with plans to create up to 150 skilled jobs over the next three years. The announcement was made during biennial defence industry exhibition, DVD2024 which is being held at UTAC Millbrook, Bedfordshire from 18th-19th September.
At its new 7.9-acre site, the manufacturer will focus on the production of protected patrol vehicles, in line with UK MOD requirements and for export to key international markets. To support this strategy, the business is set to create up to 150 skilled roles at the site across a range of areas, including engineering, factory management, training, simulation and aftersales. The facility is expected to be fully operational by the end of this year.
NMS UK’s new manufacturing hub will help to support the resilience of the UK defence industry’s supply chain for protected patrol vehicles, ensuring that valuable intellectual property is retained in the UK.
The West Midlands is home to the largest manufacturing cluster of any UK city region, with its 300,000-strong manufacturing workforce accounting for 11.2% of all local employment. This is well above the national average of 7.6%. Invest Coventry & Warwickshire has been working to support NMS UK by shortlisting suitable sites and will be working with the company through Warwickshire Skills Hub and Coventry Jobs Shop to help with recruitment and upskilling. The West Midlands Growth Company (WMGC) – the region’s official investment promotion agency – along with the Department for Business and Trade supported NMS UK’s investment by facilitating introductions to relevant stakeholders, including suppliers and the region’s world-class universities. WMGC also provided the business with ongoing communications consultancy and invitations to relevant events to support with raising its profile within the industry and local marketplace.
David Zevulun, UK Country Director at NMS UK, said: “Offering businesses world-class R&D assets, a diverse supply chain and access to funding on their doorstep, we didn’t have to think twice about choosing the West Midlands for our new manufacturing facility.
19 Sept. 24. Kongsberg Defence & Aerospace To Invest $71m In Virginia.
The defense and aerospace systems provider will create 180 jobs at a new cruise missile production facility in James County, VA.
Kongsberg Defence & Aerospace Inc., a global provider of defense and aerospace systems, will invest $71m to establish a 150,000-square-foot facility in James City County. The company will invest an additional $30m in other costs, including engineering and software. Virginia successfully competed with two other states for the project, which will create more than 180 new jobs.
“The decision to choose James City County, Virginia, was heavily influenced by the continuous availability of well-trained and highly skilled workers coming from the various military installations in the region,” said President and General Manager of Kongsberg Defence and Aerospace, Inc., the U.S. subsidiary of KONGSBERG Heather Armentrout. “That combined with the livability of the area and the tremendous support offered by the Virginia Economic Development Partnership, the Hampton Roads Alliance and the James City County Economic Development Agency, made it clear that this is where we need to be.”
“Following our productive meetings in Europe, Kongsberg’s decision to establish its first U.S. defense assembly facility in Virginia reaffirms our status as America’s top state for business,” said Governor Glenn Youngkin. “Not only will this investment create more than 180 new jobs, but it will also showcase our strategic location to attract global leaders in defense industries. We are proud to welcome them to the Commonwealth and look forward to supporting their growth.”
Kongsberg Defence & Aerospace will invest $71 m in a new James City County facility, creating 180 jobs. (Photo: Hampton Roads Economic Development Alliance)
Founded in 1814, Kongsberg Defence & Aerospace is the defense and aerospace division of the KONGSBERG Group, an international technology company that supplies high-technology systems and solutions to customers in the merchant marine, defense, aerospace, offshore industries, and renewable energy sectors. The new facility in James City County will provide additional production capacity, sustainment and in-country tech refresh capabilities for two state-of-the-art cruise missiles being procured by the Department of Defense. The U.S. Navy is procuring Naval Strike Missiles for littoral combat ships and the new Constellation-class frigate. The Marine Corps is using the same missile as a key sea denial element in their Future Force Design plans. The U.S. Air Force is procuring Joint Strike Missiles for their F-35 fighters as it is the only operational strike weapon capable of internal carriage, which preserves their stealth signature during missions. This is KONGSBERG’s first production facility in the U.S. and it will expand domestic suppliers, building capacity and redundancy for these critical capabilities worldwide.
The Virginia Economic Development Partnership (VEDP) worked with James City County and the Hampton Roads Economic Development Alliance to secure the project for Virginia. Governor Youngkin approved a $1.5 m grant from the Commonwealth’s Opportunity Fund to assist James City County with the project. The Governor also approved a performance-based grant of $750,000 from the Virginia Investment Performance Grant, an incentive that encourages continued capital investment by existing Virginia companies.
“When it comes to the business of defense, Hampton Roads is America’s military metro,” said Hampton Roads Alliance President & CEO Doug Smith. “With over one-third of our local economy supporting the defense sector and 18 military installations located in the region, Hampton Roads is one of the most significant defense ecosystems in the world. There is no question Kongsberg Defence & Aerospace chose the right location for its newest U.S. facility in James City County. We look forward to supporting their success in Hampton Roads and Virginia.”
Support for Kongsberg Defence & Aerospace Inc.’s job creation will be provided through the Virginia Talent Accelerator Program, a workforce initiative created by VEDP in collaboration with the Virginia Community College System and other higher education partners, with funding support from the Governor’s administration and the Virginia General Assembly. Launched in 2019, the program accelerates new facility start-ups through the direct delivery of recruitment and training services that are fully customized to a company’s unique products, processes, equipment, standards, and culture. All program services are provided at no cost to qualified new and expanding companies as an incentive for job creation. (Source: Google/https://businessfacilities.com/)
18 Sept 24. Leonardo opens £30m logistics hub for helicopters in Yeovil, a major new investment in UK infrastructure in the South West.
- Built in Yeovil, the Home of British Helicopters, the £30M new hub is representative of Leonardo’s wider investment in skills and infrastructure around the UK.
- The Hub will revolutionise the way Leonardo maintains its helicopters, providing even greater levels of service for the company’s UK and international customers.
- Leonardo collaborated with Kuehne+Nagel in the development of the hi-tech facility, drawing on their expertise in green technologies to embed sustainability into the new site.
Today Leonardo invited community leaders to the opening of a Single Site Logistics Hub for helicopter maintenance in Yeovil, replacing eight ageing buildings with a state-of-the-art new integrated facility. Predicted to become a landmark of sustainability in the South West, the new hub’s green design extends right into the building itself, with over 25,000 cubic metres of demolition material successfully re-utilised in its construction.
The Hub will now revolutionise the way Leonardo services its global helicopter fleet, helping the company deliver replacement parts more efficiently and responsively for its international customers. Digital technologies underpin the highly-automated facility, which is able to rapidly distribute parts all over the world in order to keep Leonardo’s fleet flying.
The £30m Hub officially recognised at the Home of British Helicopters – represents Leonardo’s wider investment in the UK as the nation’s only onshore helicopter manufacturer Leonardo has built a 3,330 strong highly skilled helicopters workforce in the UK, working on-site in Yeovil, including 430 design-focused engineers proficient in the 87 essential skill sets for executing high-value helicopter design work. The site also supports a thriving UK-wide helicopter supply chain and over 12,000 jobs.
The fully operational new Hub, is equipped with LED lighting throughout, a bank of electric vehicle charging points in support of Leonardo’s Green Travel plan for employees and a brand new fleet of electric commercial vehicles that will distribute components from the Hub to the company’s manufacturing facilities. There is also a heat recovery system in the main warehouse to complement the temperature control system in the building’s modern office facilities.
The South West of England represents by far the largest cluster of aerospace and related sector industries, capabilities, facilities and skills in the UK and the second largest in Europe. The new Single Site Logistics Hub will help to maintain the South West’s competitive edge in aerospace products and services, with the region’s rotary-wing specialism also reading across into fixed-wing and autonomous technologies.
Mr Mark Langrill, DE&S Director Helicopters, said: “We welcome Leonardo Helicopters’ development of their new Logistics Hub and applaud their focus on sustainable design. Such investments in skills and infrastructure are an important means of contributing to regional prosperity and, in this instance of improving support to some of the UK Armed Forces’ helicopter fleets, procured by DE&S, which play an essential role in defending our national interests.”
“We are proud to open this impressive new Single Site Logistics Hub here in Yeovil, the Home of British Helicopters,” said Adam Clarke, Managing Director of Leonardo Helicopters UK. “This strategically-located facility will be able to draw on the region’s robust supply chain and skilled workforce and, by incorporating the latest digital and automation technologies, will enable us to offer an even better maintenance service for our UK and international customers.”
17 Sept 24. GKN Aerospace Expands Industry-Leading Manufacturing Facility in Sweden.
- GKN Aerospace is expanding its aero-engine manufacturing facility in Trollhättan, Sweden by 5,000m2 to support the aerospace industry ramp-up
- The state-of-the-art expansion will include cutting-edge, digitized fabrication processes and increased production capacity to meet the growing demand for advanced aero-engines
GKN Aerospace has strengthened its position at the forefront of the aero-engine industry with plans to increase the capacity and efficiency of its state-of-the-art manufacturing facility in Trollhättan, Sweden. The new production area will embrace the latest digital factory processes when it is fully operational in 2026, supporting the ongoing global aerospace industry ramp-up.
The investment adds state-of-the-art capacity with advanced automation, robotics, and digital technologies. This will enable GKN Aerospace to drive up productivity, improve quality and reduce industry lead times of its world-leading engine systems and major structural components.
The backlog of aero-engines stands at up to nine years and this expansion will enable GKN Aerospace to support increasing demands for leading engines such as the GEnX, GTF and Trent XWB.
Joakim Andersson, President of GKN Aerospace’s Engines business, said: “We are seeing record order backlogs and strong growth potential across the industry, and this expansion enables us to support our customers and seize that opportunity. Our Engines business is already an industry-leader today, and this investment will not only underpin our future growth but also support the industry’s shift to more efficient and sustainable aircraft engines.”
This expansion follows a January announcement that GKN Aerospace is also establishing an Additive Fabrication Centre of Excellence in Trollhättan facility, in Sweden, as it positions the Engines business for further growth.
16 Sept 24. Kongsberg Defence & Aerospace (‘KONGSBERG’) is expanding production capacity at its Johnstown, Penn. remote weapon systems factory as part of a lease extension of 10 years plus options. The company also plans to hire an additional 20 employees in connection with the expansion. Through its U.S. subsidiary Kongsberg Defense & Aerospace Inc., the company will invest a total of $10m for improvements to the newly leased space, including infrastructure improvements as well as fixtures, tooling and equipment.
“Our continued investments as a company in Pennsylvania are a testament to the highly skilled workforce that has been producing these systems for 20 years at a level of quality and reliability that no other producer of remote weapon stations can match,” said Kjetil Reiten Myhra, executive vice president of Kongsberg Defence & Aerospace’s Defence Systems Division. “Johnstown is home to Kongsberg Defence & Aerospace’s largest production facility outside of Norway and that wouldn’t be possible without the ongoing support of the community.”
“KONGSBERG remote weapon systems play a critical role in the defense and security of the U.S. military and its allies and our incredible team and the strong work ethic in this region will allow us to expand and increase the rate at which we can supply these systems, to meet the global threat environment and support customer demand,” said Heather Armentrout, president and general manager of Kongsberg Defense and Aerospace, Inc.
KONGSBERG’s Johnstown facility, a dedicated remote weapon station production facility, currently employs more than 220 people and has a footprint of 235,000 square feet. More than 20,000 remote weapon stations and approximately 100 remote turrets have been produced in this facility since it opened in 2008. KONGSBERG maintains an extensive U.S. supply chain that will be leveraged to support the increasing demand for its products and services.
The new production space will support production of the Marine Corps’ Amphibious Combat Vehicle (ACV-30) gun system – which incorporates a 30 mm auto cannon mounted on a remotely operated turret from KONGSBERG.
In addition to producing the Marine Corps’ ACV-30 systems, the company also produces remote weapon stations for the US Marine Corps’ Marine Air Defense Integrated System (MADIS) and the Army’s Common Remotely Operated Weapon Station (CROWS). Additionally, the facility has been repairing and refreshing legacy remote weapon stations, since its establishment in 2008.
“The global threat environment is driving more sophisticated capabilities and more aggressive delivery timelines and it is paramount that we, along with our key suppliers, make the investments needed to more rapidly provide these key capabilities,” said Armentrout.
15 Sept 24. Royal surprise as £50m Airbus Helicopter HQ opened.
Airbus unveiled a new £50m headquarters and factory.
The new Airbus Helicopters facility at London Oxford Airport officially opened on Friday, in an event attended by the Prince of Wales.
Prince William surprised people at the event who were not aware that he was going to attend.
He visited the new base which will be home for 250 members of staff and has room for 32 helicopters.
The site provides maintenance and support of helicopters already in service
The Prince is the Royal Patron of London’s Air Ambulance and he was shown around a newly delivered Airbus H135 helicopter which will enter service on air ambulance duties in London next month.
The Royal has served as a RAF search and rescue pilot.
He also flew as a pilot in the East Anglian Air Ambulance from 2015 to 2017. (Source: News Now/https://www.bbc.co.uk/new)
MARITIME
13 Sept 24. USN Commissioned Submarine New Jersey SSN 796. The US Navy commissioned the newest Virginia-class fast-attack submarine, the future USS New Jersey (SSN 796), during an 11 a.m. EST ceremony Saturday, Sept. 14, at Naval Weapons Station Earle in Middletown Township, New Jersey.
New Jersey Governor Phil Murphy delivered the principal address. Additional speakers include Secretary of the Navy Carlos Del Toro; Adm. William Houston, director, Naval Nuclear Propulsion Program; the Honorable Frank Pallone and Donald Norcross, U.S. Representatives from New Jersey; Jennifer Boykin, president, HII-Newport News Shipbuilding; and Larry Runkle, vice president, Virginia-Class Submarine Program, General Dynamics Electric Boat.
The submarine’s sponsor is New Jersey resident Dr. Susan DiMarco, a retired dentist and wife of The Honorable Jeh Johnson, former Secretary of the Department of Homeland Security. As part of the commissioning ceremony tradition, she will give the order to “man our ship and bring her to life.” With the hoisting of the colors and commission pennant, Secretary Del Toro will formally place the ship in active service.
The future USS New Jersey (SSN 796) is the third naval vessel named for the state. The first USS New Jersey was a battleship commissioned in 1906 as part of the Great White Fleet that expanded the Navy during World War I. The second, also a battleship, commissioned in 1943 and earned commendations for action in World War II and the Korea and Vietnam conflicts.
New Jersey is the fifth Block IV Virginia-class submarine and is the first in its class designed and built with modifications for a gender-integrated crew. Former Secretary of the Navy Ray Mabus announced the name of this nuclear-powered fast-attack submarine at a ceremony on May 24, 2015. Its keel was authenticated on March 25, 2019, and it was christened at Newport News Shipbuilding on Nov. 13, 2021. The shipbuilder delivered New Jersey on April 25 of this year.
Each Virginia-class submarine is 7,800-tons and 377 feet in length, has a beam of 34 feet, and can operate at more than 25 knots submerged. It is designed with a reactor plant that will not require refueling during the planned life of the ship, reducing lifecycle costs while increasing underway time. The submarine was built under a unique teaming agreement between General Dynamics Electric Boat and HII-Newport News Shipbuilding wherein both companies build certain portions of each submarine and then alternate deliveries. New Jersey (SSN 796) is the 11th Virginia class submarine delivered by HII-NNS. (Source: U.S. DoD)
16 Sept 24. Second French Navy Logistics Support Ship launched.
Under the management of OCCAR, the LSS programme replaces legacy tankers in the French and Italian navies.
pan-European OCCAR organisation for Italy and France. Credit: OCCAR.
French shipbuilder, Chantier de l’Atlantique, has launched the French Navy’s second Logistics Support Ship (LSS) – the Jacques Stosskoph – into the water for the first time according to an update on 13 September 2024.
LSSs are interoperable double-hull auxiliary ships that abide by current environment regulations. The ships perform two uses: military operations and responding to civilian crises.
The vessel is capable of supporting multiple missions, ranging from Naval task force to headquarters afloat operations, providing medical support and transporting naval and aviation fuel, fresh water, ammunition, lubricating oil, food, spares and 20-foot ISO containers.
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Under the management of Europe’s Organisation for Joint Armament Cooperation (OCCAR), the LSS programme replaces legacy tankers in the French and Italian navies.
Currently, the French Navy still operate two Durance-class replenishment oilers that were first acquired in 1976. Similarly, the Italian Navy also deploy numerous auxiliary vessels that go back to 1970s and 1980s, such as the Stromboli-class oilers.
Notably, Brazil also has a vested interest in the European programme with its ‘observer status’, allowing them to participate in the programme as its own existing auxiliary platforms are in a similar legacy state.
Italy originally ordered two ships with an option for a third as the sole consumer when the contract was first established in 2015, however France subsequently joined in January 2019 with an order for four vessels.
Currently, the Jacques Stosskopf is the second French LSS after the first of the class, the Jacques Chevallier, which was delivered in 2023. This second ship also comes after Italy’s first LSS, the Atlante.
For France, the LSS fleet is designated the Force Supply Vessel (BRF) fleet; three more LSS (including the Jacques Stosskopf) will be delivered until 2029.
The keel for France’s BRF 2 was laid in December 2022 – 22 months after the keel laying of her eslder sistser, the Jacques Chevallier. (Source: naval-technology.com)
PLANT CLOSURES, JOB LOSSES AND STRIKES
19 Sept. 24. ASC, BAE Systems workers drop tools over wages and conditions disputes.
Workers at ASC sustain Australia’s Collins Class submarines in South Australia and Western Australia. ASC is also the sovereign submarine partner to sustain and jointly build nuclear-powered submarines in Australia. Photo: Russell Millard
Around 350 workers from ASC and more than 100 workers from BAE Systems are dropping tools over ongoing wage and conditions disputes.
Close to 500 South Australian manufacturing workers at two of the country’s largest defence manufacturing companies committed to rally outside the Department of Premier and Cabinet in Adelaide this week, according to a union statement published on 19 September.
Both groups are planning to draw the attention of both state and federal governments over separate protracted wage disputes.
Stuart Gordon, Australian Manufacturing Workers’ Union – South Australia assistant state secretary, said both defence companies are keeping workers on low wages despite increasing cost-of-living challenges experienced by both workforces.
“These workers experience an average of 1.5 per cent wage increase capped each year. The current consumer price index for Adelaide for June 2024 is 4.5 per cent.
“These massive defence companies are out-of-touch with the average Australian. To insist on placing wage increase caps so that wages do not keep pace with cost-of-living increases is really starting to bite on these workers,” Gordon said.
“We’re hoping all state and federal government politicians come out to support South Australian workers today.”
BAE workers have been in negotiations since March this year, with workers commencing protected industrial action last week.
(Source: Defence Connect)
17 Sept 24. Boeing freezes hiring and weighs furloughs. Boeing freezes hiring, considers furloughs as strike drags on.
- Summary
- Companies
- Boeing union workers rejected labor deal last week
- Negotiations due to restart Tuesday, union says
- Union members angry about decade of wage stagnation
- Boeing battling jet production, debt crises
Boeing is freezing hiring and weighing temporary furloughs to cut costs as a strike by more than 30,000 workers entered its fourth day on Monday.
The planemaker and union leadership badly misjudged anger among union members who backed a strike with 96% support last week, stopping production of its 737 series just as Boeing was trying to speed up assembly lines. Now executives need to find a way to contain the work stoppage with a fresh offer in talks which resume on Tuesday.
“This strike jeopardizes our recovery in a significant way and we must take necessary actions to preserve cash and safeguard our shared future,” CFO Brian West told employees in a letter on Monday. Boeing (BA.N) will stop issuing the majority of supplier purchase orders on the 737, 767 and 777 programs affected by the stoppage, West wrote, adding, “I know that these actions will create some uncertainty and concern.”
West last week said that the first priority was preserving Boeing’s credit rating, which is hovering one notch above junk.
The decision to stop placing most orders for parts for all Boeing jetliner programmes except the 787 Dreamliner is exceptionally rare and will send shockwaves through an industry still struggling to rebuild from the bottom up after COVID-19.
Some executives immediately warned of a vicious cycle of departures just as the industry is battling competition from other sectors to attract new aerospace workers and engineers.
“The smaller companies don’t have the cash to ride this out so they will start layoffs,” a senior supply chain source said. “Then those people won’t come back immediately and round the cycle goes again.”
SAFETY AND PRODUCTION CRISIS
Even before its factory workers downed tools, Boeing was wrestling with a safety and production crisis sparked by a door panel flying off a near-new 737 MAX plane in midair in January and is saddled with $60 bn of debt.
“We believe an extended strike would be costly and difficult to absorb, given the company’s already strained financial position,” said S&P Global Ratings in a note on Monday. “A shorter strike, on the order of weeks, would likely be manageable for Boeing and not lead to a negative rating action.”
Equity analyst Chris Olin at Northcoast Research said that Boeing would likely have to cut 33-35 jets from its production plan because of the strike, resulting in $102 m lost revenue daily and as much as $3 bn or more overall.
The International Association of Machinists and Aerospace Workers (IAM) rejected an offer that included a 25% pay increase spread over four years but removed an annual performance bonus. The union originally had asked for a 40% hike.
Union leaders will meet with federal mediators and Boeing on Tuesday, the IAM said in a post on its X social media feed on Saturday.
Jon Holden, the lead union negotiator, said on Saturday that workers wanted Boeing to increase its wage offer and reinstate a defined-benefit pension that was taken away a decade ago in return for keeping plane production in Washington State.
Two union sources told Reuters they didn’t expect Boeing to restore the old pension, but that demand could be used to negotiate bigger company pension contributions and higher pay.
Union members on the picket lines outside Boeing factories around Seattle were bullish about their chances of getting a better deal out of Boeing, but few expect it to happen quickly.
“Not with the history of the way Boeing and the union have negotiated in the past,” said Chris Ginn, a 37-year-old who works in a factory north of Seattle building 777 jets.
‘PAYCHECK TO PAYCHECK’
This is the eighth strike since the IAM’s Boeing arm was established in the 1930s. The last two, in 2008 and 2005, lasted 57 days and 28 days, respectively.
Reuters spoke to five workers who were using these previous stoppages as a benchmark for their financial planning since they won’t receive their salaries during the strike. The union provides $250 a week to striking members.
“I can go for six weeks, eight weeks, but it’s up to Boeing management to decide when they want to offer a fair deal,” said Thinh Tan, an engineer in the 737 MAX factory.
Many factory workers are venting anger that has been brewing for more than a decade as they watched their wages lag inflation, while executive bonuses ballooned.
“I live paycheck to paycheck,” said Ginn, clutching his son in one arm and an ‘On Strike Against Boeing’ placard in the other.
Boeing (BA.N) could lose over $100 m in daily revenue until it reaches a settlement with its union that represents more than 30,000 workers, analysts said on Monday.
The Seattle-area Boeing workers who build the planemaker’s most popular 737 MAX and other jets in factories on the U.S. West Coast went on strike after rejecting their first full contract in 16 years last week.
A prolonged strike could cost several bn dollars, fraying the planemaker’s already strained finances and threatening a downgrade of its credit rating.
(Source: Reuters)
PERSONNEL
INDUSTRY
PERSONNEL
U.S. APPOINTMENTS
18 Sept 24. Leidos (NYSE: LDOS), a FORTUNE® 500 innovation company, announced that Tina Jonas has been appointed to the company’s Board of Directors, effective September 25, 2024. She will also join the Board’s Audit and Finance Committee. Jonas is a recognized expert in military, defense and aerospace issues. Her background includes transformational leadership, strategy and planning, business development, operations, finance and technology deployment at the highest levels in the U.S. government and commercial sectors. (Source: PR Newswire)