Cautious Airbus forecast disappoints after 2020 loss

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  December 8, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

  China second to US in global arms market with three firms in top 10 manufacturers

  United States still the leading country in arms spending and sales, followed by China, driven partly by its military modernisation Six American and three Chinese companies dominate the top 10 makers in Swedish think tank's annual ranking Kristin Huang Three Chinese arms companies have been ranked among the world's top 10 for weapons sales in 2019 in a Stockholm security think tank's annual list of the largest arms manufacturers. The United States was the leading nation in terms of both arms spending and sales of weapons, with China in second place in both respects. In the ranking by Stockholm International Peace Research Institute (SIPRI), six US companies and three Chinese firms made up the top 10 along with one from Britain. Aviation Industry Corporation of China, China Electronics Technology Group Corporation and China North Industries Group Corporation were ranked sixth, eighth and ninth respectively in the list of companies. A fourth Chinese arms firm, China South Industries Group Corporation, was ranked 24th among the 25 companies examined in SIPRI's report, released on Monday. Data from SIPRI's arms transfer database showed that aircraft, ships, missiles, armoured vehicles and air defence systems were the four Chinese firms' top revenue generators in 2018 and 2019, totalling nearly US$2.5 billion, with the top three buyers of Chinese weapons being Pakistan, Bangladesh and Thailand. The combined revenue of the four Chinese companies grew by 4.8 per cent overall between 2018 and 2019, to US$56.7 billion. This was the first time SIPRI had included Chinese companies in its annual ranking, having previously cited a lack of reliable data. The report said overall arms sales by the top 25 companies rose by 8.5 per cent in 2019 to US$361 billion, with the leading five all coming from the United States: Lockheed Martin, Boeing, Northrop Grumman, Raytheon and General Dynamics, with combined arms sales of US$166 billion. Another American firm, L3Harris Technologies, was in 10th place, while Britain's BAE Systems was seventh. The US arms industry accounted for 61 per cent of sales by the world's top 25 manufacturers last year, followed by China in second place with 16 per cent, according to the report. Six western European companies collectively accounted for 18 per cent, while the two Russian companies in the list made up 4 per cent. Zhou Chenming, a military expert in Beijing, said relatively cheap prices and good quality made Chinese weapons competitive in the global arms market. “China has invested huge money in developing cutting-edge weapons for years, and now Chinese weapons have improved their performance and are at reasonable prices which can be accepted by many developing countries,” Zhou said. But Zhou did not expect the growth for Chinese companies to continue at the same rate, partly because of international polarisation driven by China's rivalry with the US. “I think most US allies will continue buying arms from the US, and Russia will keep its own market share, and it will be quite difficult for China to increase its arms export revenue,” he said. Nan Tian, a senior researcher from SIPRI, said Chinese arms companies had benefited from the drive to modernise the country's People's Liberation Army since 2015. China was already viewed by the United States as its strongest competitor in cutting-edge military technologies such as artificial intelligence and quantum computing, according to a US Congressional Research Service report released in August. “China and the United States are the two biggest states in terms of global arms spending, with companies cut to size,” Lucie Beraud-Sudreau, director of SIPRI's arms and military expenditure programme, was quoted as saying by Agence France-Presse. The US has dominated the market for decades, but China's growth “corresponds to the implementation of reforms to modernise the People's Liberation Army”, she said. https://www.scmp.com/news/china/military/article/3112823/pla-reforms-drive-china-second-place-after-us-global-arms

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  December 21, 2020 | International, Land

  Solicitation for Bradley replacement offers flexibility for foreign participation

  By: Jen Judson WASHINGTON — The request for proposals from industry for the U.S. Army's optionally manned fighting vehicle, or OMFV, intended to replace the Bradley Infantry Fighting Vehicle, has hit the street and allows for greater flexibility for foreign companies to compete. In the service's second stab at holding a competition for OMFV, the Army is driving as much flexibility as it can across the board, from avoiding stringent requirements in favor of loose characteristics and creating a phase for industry to design concepts without much company investment that will form requirements along the way. The Army's previous attempt required the delivery of physical bid samples, which hamstrung foreign competitor Rheinmetall of Germany and drove Bradley-maker BAE Systems to avoid the competition. Ultimately, the service received just one bid sample from General Dynamics Land Systems, which forced the Army to rethink the effort and come back with a new approach. The OMFV competition has foreign industry jumping to join in with new and modernized platforms, and the Army appears to be ditching much of the restrictions that would typically keep them out. Rheinmetall has already partnered with American firms Raytheon and Textron to solidify its participation in the competition, but many other companies are poised to submit bids to design concepts. The pool needs to be deep because the Army anticipates awarding up to five contracts to design platforms. “The challenges we've typically had in getting foreign participation is we often have a lot of classified material that we release up front, and we have some detailed specification that has very detailed performance requirements that's classified,” Brig. Gen. Glenn Dean, the new Army program executive officer for ground combat systems, said in a Dec. 18 press briefing. Foreign competitors “have to have clearances in place to be able to take that information,” Dean said. This means foreign companies must either be partnered with a prime contractor in the United States, have a subsidiary stateside, or have other clearances that take time to get through the approval process in order to exchange the classified information. Working through consortiums, which the Army regularly does, also makes it hard for foreign contractors to come through the door, Dean said. This time, the Army isn't working with a consortium and is using a more traditional federal acquisition regulation-based contract, according to Dean. Furthermore, he said, classified reports will not be required in order to submit a bid or receive an initial design contract award. “We've eliminated the limitation on primes and, because we don't have classified information we are providing at the front end, that allows us to share more broadly and gives those companies time if they're going to continue to play as lead, to establish their facilities, clearances and have the necessary structures in place to receive classified information when we get to that point,” he said. Dean expects more classified requirements to kick in toward the end of the concept design phase where requirements begin to take shape, which translates to specifications. “Obviously, every company is going to make their own determination about what strengths and partners may bring to the table, whether they want to come in as a sub, whether they want to be prime with a bunch of U.S. subs,” Dean said, “but the response has been very promising.” He also said there is strong interest from abroad. “I would say that we at least heard from or have participation ... from all the major companies in the West capable of doing a full combat vehicle. Companies from Israel, South Korea, Singapore, Germany, in addition to companies both you're familiar with in the U.S. who've [supplied] combat vehicles, but also some companies that operate in the defense space but haven't traditionally been combat vehicle suppliers,” he said. “We will see how many of them ultimately decide they want to throw their hat in the ring and participate. I think we've done what we need to do to make it as open at an initial point.” Sources following the competition are expecting to see participation from South Korea's Hanwha, which is in a head-to-head competition in Australia with Rheinmetall to produce a new infantry fighting vehicle. Germany-based Krauss-Maffei Wegmann has also touted an infantry fighting vehicle option, most recently at the last in-person Association of the U.S. Army's annual conference in Washington, D.C., in 2019. Belgium's CMI Defense is also rumored to be forging a partnership with a U.S. prime to participate in the competition. Now that the solicitation has been posted to Beta.Sam.Gov, companies have until April 16, 2021, to submit a conceptual bid. The Army will award contracts in July, according to Dean, which will kick off 15 months of funded work. During the phase, industry will work on designs without bending metal that will inform an abbreviated capabilities development document — or an initial set of requirements. Once the design phase ends, the Army will take a pause and then open the competition back up for a more detailed design effort ahead of prototyping, where up to three bids will be selected to proceed. The detailed design phase will be executed over the course of fiscal 2023 and fiscal 2024. The prototyping phase will begin in FY25, according to slides presented at the OMFV industry day. Vehicle testing will begin in FY26 and wrap up in FY27, with a production decision planned for the fourth quarter of FY27. Full-rate production is expected to begin in the second quarter of FY30. In parallel to the concept design phase, the Army will develop an open architecture for OMFV. An open architecture has risen to the top of the OMFV planner's list of required capability, particularly after seeing the need to be networked with other capabilities across the battlefield and at the forward edge at Project Convergence at Yuma Proving Grounds, Arizona, over the summer. The Army will establish a voluntary consortium beginning in January 2021 that will represent industry, government and academia in order to develop such an open architecture, according to the statement. https://www.defensenews.com/land/2020/12/18/bradley-replacement-request-for-proposals-hits-street-with-flexibility-for-foreign-participation/

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  August 8, 2024 | International, Land

  Berlin defence strategy eyes stakes in arms companies, report says

  BERLIN, Aug 8 (Reuters) - The German government could take a stake in arms-makers and defence projects in "strategic cases", according to a draft paper written by the economy and defence ministries, the Handelsblatt newspaper reported on Thursday. https://www.reuters.com/world/europe/berlin-defence-strategy-eyes-stakes-arms-companies-report-says-2024-08-08/