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Defense Update Business Report - January 2010


Saudi Arabian Outsources Training & Support to Northrop Grumman

The Saudi Arabia National Guard (SANG) continues to outsource training and modernization activities, Northrop Grumman has announced it won a five-year U.S. Army contract worth $550 million covering training and modernization activities for the Saudis. The company, operating under its Vinnell Arabia LLC subsidiary, will provide U.S. Army-based doctrine and military training, logistics and support services performed throughout the Kingdom of Saudi Arabia.
(photo: Northrop Grumman)

Ensign Bickford to Acquire the Defense Division of Special Devices Inc.

Ensign Bickford Aerospace & Defense Company (EBA&D) announced an intended acquisition of the Defense & Aerospace Group of California based 'Special Devices Incorporated' (SDI). EBA&D provides diversified energetic systems for Missiles, Space Launch Vehicles, the Soldier, and Ground Vehicles. SDI Defense & Aerospace serves similar markets with critical components, considered complimentary to EBA&D's core product lines. EBA&D said it will continue business operations from the current SDI Defense and Aerospace site in Moorpark, CA.

Israel's defense exports Soar to $6.75 Billion in 2009

Major General (ret.) Udi Shani, Director General, Israel Ministry of Defense (IMOD)Despite the economical crisis, Israel's revenues from defense exports increased in 2009 to US$6.75 billion. According to Major General (ret.) Udi Shani, head of the Ministry of Defense Foreign Defense Assistance and Defense Export Department, this growth is attributed to the ingenuity of Israel's defense industries and the support provided by the country's defense establishment. On January 15 Shani was nominated Director General of the Ministry of Defense, replacing Brig. General (ret.) Pinchas Buchris.

Israel's largest target markets are in North America, Asia, Europe and in Latin-America. Major contributors to Israel's defense export growth were the growing demand for force protection, armored vehicles, command, control and intelligence among coalition forces operating in Afghanistan, and the growth in demand for defense systems in countries such as India and Brazil.


Photo: Maj. General (ret.) Udi Shani, the former Head of SIBAT
and the new Director General of Israel Ministry of Defense. (Photo: Yad Lashiryon)


Rheinmetall, MAN Join Forces Offering Military Vehicles

Rheinmetall AG and MAN Nutzfahrzeuge AG announced the establishment of a joint company called "Rheinmetall MAN Military Vehicles GmbH" (RMMV) offering complete wheeled vehicle solutions for military applications. The company's activity will cover the entire range of armored and unarmored transport, command and role-specific vehicles for the international armed forces. 

The two companies have identified complementary technological core competencies - RMMV unites MAN's automotive expertise in commercial vehicle manufacture with Rheinmetall's technological know-how in the military field. Rheinmetall will have a stake of 51 percent and MAN 49 percent in the new company, which will be headquartered in Munich. The plan is still subject to approval from the competition authorities. The two companies will merge their development and sales activities in the military wheeled vehicle sector. Toward the end of 2011 the new company will also assume responsibility for the production lines of the two companies, in Kassel (Rheinmetall) and Vienna (MAN Nutzfahrzeuge), increasing its work force from 370 to around 1,300 employees, generating an annual turnover of more than a billion euros. 

"The new company follows the trend towards the joint acquisition of logistical and tactical military vehicles, whose protective and mobility characteristics have become highly similar because of current operational conditions," explained Klaus Eberhardt, Chairman of the Executive Board of Rheinmetall AG. "With their joint enterprise MAN and Rheinmetall are at the same time making an important contribution to the necessary consolidation of military vehicle systems at national and European levels," Eberhardt continued.

MBDA Launches CRISTAL to Enhance Composite Manufacturing Capability

MBDA has launched a three-year project which aims to mature advanced composite material molding technology for aerospace and defense applications. The CRISTAL project implemented by the Carbone Forgé Company will enable automated production of complex shapes using long fibers and high performance materials, resulting in cost reduction of up to 40%, compared to conventional layout and autoclave production methods. The new application will also enable more opportunities to replace metal-fabricated aerospace parts with products made of composit

Boeing Reorganizes its Defense Business

The Boeing Company today announced re-branding of its Integrated Defense Systems, to be called "Boeing Defense, Space & Security". The division is being reorganization with certain leadership changes announced today. 

According to Dennis Muilenburg, President and CEO of Boeing Defense, Space & Security the realignment is part of a continuing effort to better position the company in the global defense and security marketplace. "Boeing anticipated flattening defense budgets and shifting customer priorities for the past few years and has been taking aggressive steps to position the company for profitable growth in a challenging economy," Muilenburg said. In the past 18 months Boeing acquired seven companies to enhance existing capabilities, expanded its services business, and created new divisions - like the Unmanned Airborne Systems, in response to emerging priorities of its customers. The recent strategic move strengthens the company's global position in markets such as cyber-security, energy, intelligence, C4ISR and logistics, as reflected by the name change. The realignment consolidates some divisions and makes a number of leadership changes.

The new formation  consolidates two divisions in the Network and Space Systems (N&SS) - the Combat Systems division and the Command, Control & Communications (C3) Networks division, to form the new Network and Tactical Systems division. Furthermore, the Weapons Business unit, formerly a subdivision of the Global Strike Systems division is becoming a division within In the Military Aircraft (BMA). Organizational streamlining have also been implemented with the Heath, Ohio, and Ogden, Utah, facilities that will now report to the Missile Defense Systems division. Control streamlining will also be implemented with the international business activities within the Global Services & Support (GS&S) unit.

Textron, Granite to Form Partnership Specializing in Armor Solutions

Textron Marine & Land Systems, have entered into an exclusive teaming relationship with Mount Airy, NC based Granite Tactical Vehicles Inc. The two companies plan to develop affordable, lightweight, crew survivability solutions for light tactical vehicles which Granite has been developing since 2004. Contrary to Textron's aim at the military customer, Granite has been serving government agencies, private security contractors and law enforcement units. Its rapidly tailored protection modules added to existing vehicles were proven on missions including convoy protection, personnel movement & relocation, rescue operations and cargo delivery. “We see Granite’s innovations in survivable and mobile light armored vehicles to be an excellent match with our engineering and manufacturing expertise, especially in armored vehicles,” said Textron Marine & Land Systems Vice President of Strategy and Business Development Mark Savarese.

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