April 17, 2020 | International, Naval
By: Sebastian Sprenger
COLOGNE, Germany — The German government is facilitating talks between major naval shipbuilders in an effort to set up a national conglomerate rivaling industry champions like Naval Group in France and Fincantieri in Italy, according to a local media report.
Negotiations to that effect have been ongoing behind closed doors since the beginning of 2020 between ThyssenKrupp Marine Systems, German Naval Yards Kiel, and Lürssen, broadcaster NDR reported Thursday.
Top executives from the companies confirmed the developments on Twitter, though without elaborating on the status of the negotiations.
News of the consolidation plan comes in the wake of German Naval Yards Kiel and TKMS losing a multibillion-dollar contract for new Germany Navy frigate-type ship, dubbed MKS 180. Dutch bidder Damen won the competition in January. The Dutch company has teamed with Lürssen for the program, vowing to do most of the construction work in Germany.
Still, the MKS 180 award angered industry lobbying groups in Germany, who argue that the country's good-faith effort to carry out a European Union mandate for bloc-wide competition in major public programs backfired. Other European countries tend to keep such defense-related work within their own industrial ecosystems, the argument goes.
“The need for a German consolidation in naval shipbuilding has been repeatedly emphasized by us and our owner, Privinvest, during the past few years,” German Naval Yards Kiel CEO Jörg Herwig was quoted as saying in a statement. “Only a strong German player will be able to remain globally competitive and strengthen the German technology sector.”
Privinvest is owned by French-Lebanese businessman Iskandar Safa.
A request for a statement from the German Ministry for Economic Affairs and Energy was not immediately returned on Thursday.
The idea of a unified German naval industry cluster runs counter to the narrative that the European defense market should focus less on national retrenchment and instead bank more on efficiencies through cross-continental mergers.
“I think we have to be honest with ourselves and admit that European defense acquisition will be mostly national, and maybe binational or trinational,” said Sebastian Bruns, a naval analyst with the University of Kiel in northern Germany.
Bruns said Lürssen's role in the consolidation talks will be interesting to watch because the company has its foot in the door of the MKS 180 program — through Damen — and at the same time would benefit from a German industry conglomerate with the Navy as a guaranteed customer.
All the while, German Naval Yards Kiel has begun the legal process of challenging the Defence Ministry's pick of Damen for the business. Letting the litigation play out in the courts is all but certain to cause a delay in the eventual delivery of the vessels to the sea service.
But in the course of future consolidation talks, the government could use its leverage as the broker — and ultimate approval authority — to put the protest by German Naval Yards Kiel to rest and let the MKS 180 program proceed swiftly, Bruns said.
“In the end, the most important question is what actual results will come out of this,” he said.
May 21, 2024 | International, Security
Representatives from the Armenian Ministry of Defence met with their counterparts at NATO Headquarters at the end of April to review activities conducted within the framework of NATO’s Defence Education Enhancement Programme (DEEP) for Armenia.
October 2, 2024 | International, Land
December 2, 2020 | International, Aerospace
Haifa, Israel, November 29, 2020 – Elbit Systems Ltd. (NASDAQ: ESLT, TASE: ESLT) (“Elbit Systems” or “the Company”) announced today that it was awarded a contract valued at approximately $96 million to supply a European country with a Rotary-Wing Mission Training Center (“Rotary-Wing MTC”) and support services to train its Air Force, Army and Navy helicopter pilots and crews. The contract will be performed over a nine-year period, with an option to extend the maintenance services for an additional 10-year period. The Rotary-Wing MTC is a networked multi-platform, mission-oriented, helicopter training center that will provide multi-level training for helicopter pilots and aircrews across the customer's Armed Forces. The new training center will enable realistic simulated tactical training using all of the helicopter's systems in a wide variety of mission scenarios. The Rotary-Wing MTC draws on the unique technologies and accumulated operational experience of the Company's fighter aircraft tactical mission training centers. Yoram Shmuely, General Manager of Elbit Systems' Aerospace Division commented: “This contract highlights the growing importance that Armed Forces place on leveraging proven technologies to enhance readiness while reducing costs.” About Elbit Systems Elbit Systems Ltd. is an international high technology company engaged in a wide range of defense, homeland security and commercial programs throughout the world. The Company, which includes Elbit Systems and its subsidiaries, operates in the areas of aerospace, land and naval systems, command, control, communications, computers, intelligence surveillance and reconnaissance (“C4ISR”), unmanned aircraft systems, advanced electro-optics, electro-optic space systems, EW suites, signal intelligence systems, data links and communications systems, radios, cyber-based systems and munitions. The Company also focuses on the upgrading of existing platforms, developing new technologies for defense, homeland security and commercial applications and providing a range of support services, including training and simulation systems. For additional information, visit: https://elbitsystems.com/, follow us on Twitter or visit our official Facebook, Youtube and LinkedIn Channels. Contacts: Company Contact: Joseph Gaspar, Executive VP & CFO Tel: +972-4-8316663 j.gaspar@elbitsystems.com Rami Myerson, Director, Investor Relations Tel: +972-77-2946403 rami.myerson@elbitsystems.com David Vaaknin, VP, Brand & Communications Tel: +972-77-2946691 david.vaaknin@elbitsystems.com IR Contact: Ehud Helft Gavriel Frohwein GK Investor Relations Tel: 1-646-688-3559 elbitsystems@gkir.com This press release may contain forward‑looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended and the Israeli Securities Law, 1968) regarding Elbit Systems Ltd. and/or its subsidiaries (collectively the Company), to the extent such statements do not relate to historical or current facts. Forward-looking statements are based on management's current expectations, estimates, projections and assumptions about future events. Forward‑looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions about the Company, which are difficult to predict, including projections of the Company's future financial results, its anticipated growth strategies and anticipated trends in its business. Therefore, actual future results, performance and trends may differ materially from these forward‑looking statements due to a variety of factors, including, without limitation: scope and length of customer contracts; governmental regulations and approvals; changes in governmental budgeting priorities; general market, political and economic conditions in the countries in which the Company operates or sells, including Israel and the United States among others; changes in global health and macro-economic conditions; differences in anticipated and actual program performance, including the ability to perform under long-term fixed-price contracts; changes in the competitive environment; and the outcome of legal and/or regulatory proceedings. The factors listed above are not all-inclusive, and further information is contained in Elbit Systems Ltd.'s latest annual report on Form 20-F, which is on file with the U.S. Securities and Exchange Commission. All forward‑looking statements speak only as of the date of this release. Although the Company believes the expectations reflected in the forward-looking statements contained herein are reasonable, it cannot guarantee future results, level of activity, performance or achievements. Moreover, neither the Company nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The Company does not undertake to update its forward-looking statements. Elbit Systems Ltd., its logo, brand, product, service and process names appearing in this Press Release are the trademarks or service marks of Elbit Systems Ltd. or its affiliated companies. All other brand, product, service and process names appearing are the trademarks of their respective holders. Reference to or use of a product, service or process other than those of Elbit Systems Ltd. does not imply recommendation, approval, affiliation or sponsorship of that product, service or process by Elbit Systems Ltd. Nothing contained herein shall be construed as conferring by implication, estoppel or otherwise any license or right under any patent, copyright, trademark or other intellectual property right of Elbit Systems Ltd. or any third party, except as expressly granted herein. View source version on Elbit Systems: https://elbitsystems.com/pr-new/elbit-systems-awarded-96-million-contract-to-supply-a-rotary-wing-mission-training-center-to-a-european-country/?pageid=PR%20-20%20News