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NEW COMBAT VEHICLES Unveilings in Paris Wow Industry Insider knowledge for the discerning defence and security professional Issue #10 July 2016 Rheinmetall lets US RFI for new Rumours rotate Lynx off the leash CH-53k fleet around Apache deal NEW COMBAT VEHICLES Unveilings in Paris wow industry INTERVIEW SAAB CEO DISCUSSES GRIPEN-E ROLLOUT TURKEY COMMITS TO NAVAL UAV DEVELOPED FOR ISTAR US BOLSTERS SPENDING BOOST DEMAND EUROPEAN FOCUS 1 :: Defence Industry Bulletin 1 Welcome 1 The Briefing Room 35 The Broader Picture 2 More Information 50 Land 10 Sea 19 Air 24 International pilots sharing the tarmac in Linköping, Sweden. Source: Georg Mader ith the UK’s decision to surface vessel deal with Fincantieri, In The Briefing Room, Georg Mader Wleave the EU dominating the unveiling of new fast patrol interviews Saab CEO Håkan Buskhe the headlines in Britain, the vessels by two Italian shipyards, about The JAS39E’s enhancements potential impact of withdrawing and Turkey’s plan to spend big on and speaks to Major General Mats on the European Aerospace and new naval equipment. Helgesson, Chief of Swedish Air Defence industry is being hotly Force Staff. We’ve also got an debated. We can’t guarantee what From Eurosatory, Victor M.S. exclusive interview with Brigadier the shape of the markets will look Barreira reports on France José A. Crepaldi (FAB), Director of like by October’s issue but we developing a new 6x6 combat Brazilian Department of Defence can guarantee insight, facts, and vehicle for delivery from 2020 while Products, alongside a chat with business intelligence for the world Eugenio Po reports as the Iveco-Oto Brigadier General Kim Jäämeri, at large! Melara Consortium (CIO) unveiled Commander of the Finnish Air its prototype of the new CENTAURO Force. In this issue of Defence Industry 2 Mobile Gun System (MGS). Also Bulletin, Oliver Austin reports as from Eurosatory, DIB has the We hope you enjoy the issue – and Norway lays out its defence and details as France discusses the the summer! security investment plan and modernisation of its Leclerc MBT. Lieutenant General Ben Hodges talks to us about the state of Ahead of Farnborough in July, security in Europe – including the Boeing is expected to announce a deterrent measures being levelled $2.9bn contract for a fleet of new at Russian forces across the Eastern Apache helicopters for the UK divide. MoD, although this will be a good bellwether to understand more In naval news, we look at how about the potential impact of Canada is streamlining its surface Brexit. We look at the deal that is combatant programme and get the bringing the AW139 to Pakistan in a Andrew Elwell and Richard de Silva latest as Italy’s former MINERVA SAR role and Rory Jackson focuses class are transformed into OPVs for on unmanned developments as the Bangladesh Coast Guard. We’ve Delair-Tech reveals a small UAV for got the details of Qatar’s $4bn military ISTAR operations. 1 :: Defence Industry Bulletin The Broader Picture Brexit confuses UK and European defence industries The Editors ike everyone, Defence Industry matters, a weaker union may well becomes a more arduous and LBulletin remains largely in impact NATO’s overarching strategy. expensive process. the dark about the future impact Meanwhile, EU task forces, such as of Britain’s decision to leave the anti-piracy efforts in Africa, may Information security may suffer if European Union and will be keeping see the UK unmooring from these the UK is slow to decide on how to a careful eye on developments over operations and the overall effort interact with new data regulations the coming weeks and months. becoming harder to resource. Such and directives already being signed a detachment could potentially off in Europe. Counter-terrorism In the immediate aftermath, we see resurging trouble in several efforts by law enforcement agencies believe the Leave vote is unlikely vulnerable regions. However, (UK and European) will need to to have a significant impact as in the interests of security, we be properly negotiated to ensure much of the industry holds off on believe the UK is more likely to intelligence and data sharing is not making snap decisions in terms continue to participate in these interrupted. of jobs, ongoing contracts, and types of exercises as long as they investment plans. However, in the remain affordable and mutually Further, antagonistic nations long-term, the outlook will depend beneficial. And that is the key are likely to continue to push on exactly when the UK triggers point: the impact of the Leave vote for the continued breakup of the Article 50 and decides on agreed on Defence will not be directed by EU through further referendums terms (for example – will the UK political or strategic decisions, but on the continent, which could have access to the single market?). rather the state of the economy demolish economic sanctions and While bilateral cooperation with and the UK’s (and Europe’s) ability lead to a greater risk of asymmetric Europe already exists outside of the to continue funding its security incursions into European territory EU institution, Brexit will inevitably interests. (like that of the Crimea incident). make commercial and security A new Scottish independence issues more ambiguous. A limping Speculation has been rife that other referendum is being discussed but pound will make imports from European nations may attempt to a 2014 RUSI report ahead of the North America more expensive, offset the loss of British defence first vote has already outlined the meaning many carefully budgeted spending by boosting their own dangers to defence and security programmes may suffer, but if the or indeed accelerating plans for posed by a Scottish departure. economy makes a robust recovery, an EU defence consolidation and the UK could be well placed to centralisation. Pooling and sharing If our readers have opinions on renegotiate new trade deals within efforts are almost certainly likely to the matter, we are happy to hear and without Europe. increase. However, the UK may see them. Let us know your thoughts at its own internal defence spending [email protected]. Strategically, while the North decrease as the financial markets Atlantic Treaty is separate from EU recoil and trade with EU nations Defence Industry Bulletin :: 2 The Broader Picture Norway lays out defence and security investment plan Oliver Austin slo has released its “We are looking to strengthen 20-year plan proposing short-term readiness, to invest in Onew spending towards national “We cannot future capabilities and to create real intelligence, situational awareness, long term sustainability,” she said. and survivability for the armed have security “We have to ensure that we, along forces, among its range of defence with our allies, have the means to and security needs. without present a credible deterrent against the use of force. This plan enables The Government is recommending sustainability. us to do just that. expenditure at $861m over the next four years, with the armed “While every new generation of forces receiving a total of $19.7bn This plan aims equipment and technology allows in additional funding over the us to do much more than the next two decades. However, the to provide both.” previous one that added capability proposed hike would still fall short comes at a price. We can no longer of meeting NATO’s ‘2 percent of as dedicated long-range air defence accommodate that trend simply GDP’ defence spending target. systems to protect critical areas. by buying fewer platforms or by For the first time, the Long Term internal efficiency savings. We Among the biggest expenses Plans account for the cost growth cannot have security without will be the purchase of four new of military equipment beyond sustainability. This plan aims to submarines, a maritime patrol standard inflation as a key piece of provide both.” aircraft (MPA) replacement financial planning. programme, modernised air Parliament will consider the defence systems, and finalising Defence Minister Ine Eriksen proposal after the summer recess. payment for the F-35 programme, Søreide suggested that with the of which 52 are due to enter deterioration of the security Norwegian service. The proposals situation in Europe in recent years, also include the introduction of the Government has to make invest longer range weapons to Norway’s wisely to protect the country from current NASAMS II-system, as well future threats. Norway’s strategy will address both short- and long-term readiness. Source: PRT Meymaneh 3 :: Defence Industry Bulletin Navy Canada streamlines surface combatant programme Oliver Austin anada is taking a to ensure that this and other ship advising the Government to beware streamlined procurement construction projects provide sole-sourced military contracts due Capproach to speed up delivery of middle-class jobs and prosperity to common cost overruns, has also the Canadian surface combatant to hardworking Canadians. This become public knowledge. (CSC) vessels to the Royal Canadian streamlined approach is aligned Navy, in a move that could cut the with our efforts to modernise The Canadian Press obtained $20bn programme down by two procurement and to make it easier the report, which cited a list of years. for Canadian businesses to work potential pitfalls in not running an with government.” open competition, as the Liberal The approach, which is described administration look set to award as ‘simplified’ and ‘transparent’, Construction of the CSC vessels Boeing a deal for Super Hornet was announced in June by Public is scheduled to begin after the fighter jets to replace Canada’s Services and Procurement Minister completion of the Arctic Offshore ageing CF-18s. Judy Foote and John McKay, Patrol Ships in the early 2020s, with Parliamentary Secretary to National the intention for the ships to serve A long-term fighter replacement Defence Minister.
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