September 3, 2019 | International, Aerospace, Naval, Land, C4ISR, Security

Here’s what Japan’s Defense Ministry wants to do with $50.5 billion

By: Mike Yeo

MELBOURNE, Australia — Japan's Defense Ministry has requested a budget of $50.5 billion for its next fiscal year, an increase of 1.2 percent over the previous year and the eighth straight year of an increase.

The funds will be used to acquire more Lockheed Martin F-35 fighter jets, including Japan's first short-takeoff-and-vertical-landing F-35B, as well as increasing its Boeing KC-46A Pegasus tanker fleet to six aircraft.

The bulk of the budget request is for costs associated with U.S. military forces stationed in Japan, with $1.9 billion requested to pay the salaries of Japanese citizens employed by the U.S military, supporting training exercises, and performing maintenance on and improvements to U.S. military facilities.

The ministry's request includes $1.08 billion for F-35s, which is made up of $291.3 million for three conventional takeoff and landing F-35As and $795.3m for six F-35Bs.

These will be Japan's first F-35Bs, and it's expected the country will eventually order 42 "B" models, of which 18 will be acquired over the next five years, according to Japan's Mid-Term Defense Plan released late last year. It also has plans to eventually operate 105 F-35As.

The F-35Bs are to be operated from two Izumo-class helicopter destroyers. Japan announced last year plans to convert both ships, which are currently designed to operate helicopters, to be able to handle F-35Bs. Notably, the budget request asks for $29.1 million for “partial refurbishment” to enable F-35B operations.

According to other reports, modifications for the ships include improvements to the heat resistance of their flight decks as well as the installation of additional lighting for aircraft operations. Japanese Defense Minister Takeshi Iwaya added that F-35B deck trials could be conducted with U.S. Marine Corps F-35Bs based in Japan following the modification work.

Beyond the jets

The budget request also asks for $1.05 billion for four more Boeing KC-46A Pegasus tanker aircraft, and $284.8 million for more Raytheon SM-3 Block IIA ballistic missile interceptors.

The request for funding for four KC-46As is a departure from normal procedure, Previously, Japan ordered one tanker each during the 2017 and 2018 fiscal years. According to the ministry, the batch order is a more cost-effective means of acquisition, resulting in $100 million worth of savings.

Given that Japan already awarded contracts to Boeing for two of the three KC-46As previously on order, the budget request for four more tankers suggests the ministry wants funding for the last aircraft and and for an additional order of three KC-46s. Defense News has sought clarification from Japan's Defense Ministry over whether this is the case.

The budget request also includes a number of acquisitions from Japan's defense industry, with $654.3 million for another Soryu-class diesel-electric attack submarine.

And should the budget pass, Kawasaki Heavy Industries will be able to keep its aircraft production lines open, with the ministry seeking funds to acquire three more P-1 anti-submarine aircraft and six C-2 airlifters at $213.4 million and $599 million respectively.

The ministry also wants money for more equipment destined for Japan's land forces: 33 Type 16 wheeled maneuver combat vehicles and seven Type 19 wheeled self-propelled howitzers. The Type 19 is a newly developed eight-wheel drive howitzer sporting a 155mm weapon mounted on the German MAN HX military truck chassis, and it's earmarked to replace the towed FH70 howitzer currently in service with the Japan Ground Self-Defense Force.

The Defense Ministry also wants to continue funding the development of indigenous electronic warfare capabilities.

Japan's next fiscal year begins April 1, 2020. The budget request is not necessarily the actual amount that will be allocated by the Finance Ministry.

https://www.defensenews.com/global/asia-pacific/2019/08/30/heres-what-japans-defense-ministry-wants-to-do-with-505-billion

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December 10, 2019 | International, Aerospace

L'achat d'un nouvel avion de combat, un choix militaire et diplomatique
Le Rafale, l'Eurofighter, le F-35A ou le F/A-18 Super Hornet: quel nouvel avion de combat la Suisse choisira-t-elle? La décision sera politique. Mais ce choix n'est pas qu'une question de technologie. L'enjeu est aussi diplomatique. Les 26 vieux Tiger et les 30 F/A-18 de l'armée suisse arriveront à la fin de leur durée d'utilisation au plus tard vers 2030. Après le retrait du suédois Saab, constructeur du Gripen, il ne reste plus que quatre constructeurs en lice pour les remplacer: le français Dassault (Rafale), l'européen Airbus (Eurofighter) et les américains Boeing (F/A-18 Super Hornet) et Lockheed-Martin (F-35A). Les quatre jets ont été évalués entre avril et juin sur la base aérienne de Payerne (VD). Objectif: tester leurs capacités en conditions réelles. Au terme de l'appel d'offres, le Département fédéral de la défense effectuera une recommandation fondée sur l'efficacité opérationnelle, mais aussi sur d'autres critères comme les coûts d'achat et d'exploitation. La décision finale reviendra au Conseil fédéral. Quel avion pour quel partenaire? La compétition entre les quatre candidats se jouera sur les capacités de l'appareil mais aussi sur les contreparties industrielles - les affaires compensatoires - exigées par la Suisse. Moins visible, il existe aussi un autre enjeu, plus diplomatique. Pour le comprendre, la RTS s'est rendue dans la capitale française. Le ministère français des Armées, qui chapeaute l'offre pour le Rafale, lui a exceptionnellement ouvert ses portes. La France, cinquième puissance militaire mondiale, n'exporte pas ses armes comme elle exporte ses voitures, explique Thierry Carlier, chargé du dossier côté français. "Qu'un pays ami acquiert un système qui est le même que celui de la France permet de développer des partenariats très importants. C'est pour ça que notre offre dépasse largement la question du Rafale", affirme-t-il. Pour le directeur du développement international de la Direction générale de l'armement (DGA), cette notion de partenariat est importante. Acheter un avion français permettrait de créer des opportunités au niveau technologique, avec des échanges, mais également sur un plan plus opérationnel: réalisation d'exercices communs, utilisation par la Suisse de terrains d'entraînement français, développement des missions de police du ciel existantes, partage d'expériences, etc. "Europe de la défense" La France n'est pas la seule à vouloir séduire la Suisse avec un partenariat. C'est aussi le cas de l'Allemagne, qui vend l'Eurofighter, fabriqué par Airbus. Acheter cet avion, c'est s'allier davantage à l'Allemagne, comme le relevait ce printemps le lieutenant-colonel de l'armée de l'air allemande Ingo Stüer lors de la présentation de l'Eurofighter à Payerne. "Je pense que les défis pour les armées de l'air en Europe sont tous les mêmes, affirmait-il. Pour l'armée de l'air allemande, c'est important d'être interopérable avec nos alliés, afin d'être capable d'agir ensemble s'il le faut. C'est pourquoi nous cherchons une coopération très étroite avec l'armée de l'air suisse." La France et l'Allemagne, avec leurs offres, proposent aussi à la Suisse "l'Europe de la défense", une certaine vision d'une Europe géographique souveraine défendue par Emmanuel Macron. "Je pense qu'il y a une cohérence des Européens à s'équiper en européen. Je défends beaucoup cette idée", expliquait en juin dernier le président français à la RTS. L'argument économique Si cette "Europe de la défense" n'intéresse pas la Suisse, il reste les deux chasseurs américains. Lors des essais du F/A-18 Super Hornet et du F-35A à Payerne, l'ambassadeur des Etats-Unis en Suisse Edward McMullen adoptait d'ailleurs des arguments différents de ses concurrents européens. Un style diplomatique davantage porté sur les enjeux économiques. "Lorsqu'on parle de développement économique et d'opportunités de marchés, il s'agit d'un partenariat. Nous sommes conscients que la Suisse est neutre et il n'y a aucune alliance avec elle", explique-t-il. Un vote sur le principe, pas sur l'avion L'Europe ou les Etats-Unis? Pour quel partenariat? Le Conseil fédéral se réserve ce choix. Sur ce point, le peuple n'aura pas son mot à dire. Il ne votera que sur l'enveloppe de six milliards de francs destinée à l'acquisition des nouveaux avions de combat sans connaître le nom de son futur partenaire. La votation devrait intervenir à l'automne 2020. https://www.rts.ch/info/suisse/10922471-l-achat-d-un-nouvel-avion-de-combat-un-choix-militaire-et-diplomatique.html
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Cessna-maker Textron to cut 725 jobs as part of restructuring plan | Reuters
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August 14, 2020 | International, Land

AM General CEO on acquisition by a private equity firm
WASHINGTON ― KPS Capital Partners is acquiring Humvee-maker AM General, the private equity firm announced last month, marking a new chapter for the South Bend, Indiana-based vehicle maker. AM General President and CEO Andy Hove will continue to lead the company, and KPS Partner Jay Bernstein said the firm would continue to build on the ubiquitous Humvee, leveraging the company's “research, technology, innovation and new product development, as well as its heritage and iconic brand name.” The Humvee appears to have some growth ahead. For one, U.S. Army budget documents call for $1.5 billion through 2025 to pay for modernization of its fleet of High Mobility Multipurpose Wheeled Vehicles and their up-armored variant. That can include replacing major components, applying new technologies or replacing vehicles entirely. After the Army reaches its procurement objective for the Joint Light Tactical Vehicle, made by Oshkosh, it will have an enduring requirement for 54,800 Humvees. Otherwise, AM General ― which has advertised both its Brutus 155mm and Hawkeye 105mm mobile howitzers ― is expected to participate in the Army's mobile howitzer shoot-off evaluation at Yuma Proving Ground, Arizona, next year. Meanwhile, the Army is expected to complete a new tactical wheeled vehicle strategy in fiscal 2021, which has thus far received congressional support, per the House and Senate versions of the annual defense policy bill. Hove, who has said KPS will continue to execute AM General's existing strategy, spoke with Defense News on Aug. 6. This interview has been edited for brevity and clarity. Private equity firm KPS Capital Partners is in the process of acquiring AM General. At this preliminary stage, what would you say are KPS' plans and vision for the company? I think [KPS partner] Jay Bernstein represented it in his quote in the announcement that they feel really good about the capabilities of AM General and the strategy we've been executing. We've discussed with them where we can go. They're confident in our business and the growth prospects of AM General. They feel good about and stand behind our strategy, and we're going to work together with them. Will the company focus more on the Humvee, or do you see it becoming more flexible? What is the future for the Humvee? Who are its customers these days? To say we're only focused on the Humvee today would not be a correct premise. We've made investments across the board, in base automotive systems, and then automotive systems that have a particular special use. Our core focus is in solving very complex mobility challenges for customers. So the Humvee has a great future. I would offer that you turn to not what I say about what the Army will do but what the Army says they're going to do on the Humvee fleet, which is to steadily and systematically manage a very large fleet by systematic replacement of that fleet and recapitalization of that fleet going forward. They've been buying new-built Humvees to replace old Humvees over the last four years at a pretty heavy clip and have announced their intention to continue to do that going forward. We're obviously going to focus on the Humvee because there's significant demand. It is today the world's leading military 4x4 in its class, and we build more of them than any other military vehicle manufacturer in the world, and especially more than anybody in our weight class. That won't be the only thing we invest in. You can see our investments in the Hawkeye, which brings game-changing breakthrough technology [in relation to] how artillery systems are moved around and employed on the battlefield, together with a whole other range of implementing technologies such as autonomous navigation, off-board power and those kind of things. The U.S. Defense Department is an important customer, but a considerable portion of our businesses is global business, so we take a global view of how we solve mobility challenges for our customers around the globe. The Army recently issued a request for information about replacing heavy trucks. Is that a potential opportunity? We certainly feel like we have something to offer, a range of things to offer there, and that RFI's only been out for a couple of weeks. We'll will certainly take a closer look at that. We're also taking a look at the JLTV competition they announced back in February. Defense News recently characterized AM General as “largely stagnant” since losing the competition for the JLTV in 2015 to Oshkosh. Do you want to push back at all to talk about AM General's time under McAndrew & Forbes? The JLTV decision was 2015, and the four years since the announcement on the JLTV competition we've built more military vehicles than Oshkosh or any other military vehicle manufacturer by a long shot, and sold them to more customers around the globe than anyone else. I think that's far from being stagnant. There are a lot of adjectives you can apply to the company. “Stagnant” would not be the one I would apply. Private equity firms will typically set up companies they buy for faster growth, and then potentially that'll lead to a future sale. Do you think that's something that might happen here, and what do you predict? Is there any indication of time horizons for KPS? KPS has made a lot of smart investments, they have a pattern, but they're not going to be pigeonholed into a particular time frame for a next-step strategy. https://www.defensenews.com/interviews/2020/08/13/am-general-ceo-on-acquisition-by-a-private-equity-firm/

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Here’s what Japan’s Defense Ministry wants to do with $50.5 billion

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Cessna-maker Textron to cut 725 jobs as part of restructuring plan | Reuters Business jet maker Textron said on Tuesday it would cut 725 jobs as part of its restructuring plan in an attempt to reduce operating expenses, sending its shares up more than 2% after the bell.

Cessna-maker Textron to cut 725 jobs as part of restructuring plan | Reuters
Business jet maker Textron said on Tuesday it would cut 725 jobs as part of its restructuring plan in an attempt to reduce operating expenses, sending its shares up more than 2% after the bell.