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  • Who were the largest major arms exporters in the last 5 years?

    March 10, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    Who were the largest major arms exporters in the last 5 years?

    By: Chiara Vercellone WASHINGTON — The United States was the largest exporter of major arms from 2015-2019, delivering 76 percent more materiel than runner-up Russia, according to a new study by the Stockholm International Peace Research Institute think tank. The U.S. contributed about 35 percent of all the world's arms exports during that five-year time period, partly supported by the increased demand for American advanced military aircraft in Europe, Australia, Japan and Taiwan, said Pieter Wezeman, a senior researcher at SIPRI. The study found that the U.S. provided major arms — defined by the think tank as air defense systems, armored vehicles, missiles and satellites, among other materiel — to 96 countries in those five years, with half of the weapons going to the Middle East. From 2015-2019, Russia's major arms exports decreased by 18 percent; France's increased by 72 percent, making it the third largest exporter; and Germany's increased by 17 percent, making it the fourth largest exporter. Worldwide arms exports rose nearly 6 percent in 2015-2019 from 2010-2014, and increased 20 percent from since 2005-2009, SIPRI said. Arm exports to countries in conflict in the Middle East increased by 61 percent in 2015-2019 compared to 2010-2014, the study showed. Saudi Arabia, the country to which the U.S. exported the most arms, was the largest importer globally in 2015-2019. The kingdom's imports increased 130 percent compared to the previous five-year period. Armored vehicles, trainer aircraft, missiles and guided bombs were among the leading arms purchased by the kingdom. Despite attempts in Congress to restrict arms exports to Saudi Arabia, the delivery of major arms, including 30 combat aircraft ordered in 2011, continued in 2019 as the U.S. provided 73% of Saudi Arabia's imports. In May, U.S. President Donald Trump issued an emergency declaration to push through an $8 billion arms deal with Saudi Arabia and other Middle Eastern countries for precision-guided bombs and related components. In July, he said blocking the sale of arms to Saudi Arabia would “weaken America's global competitiveness and damage the important relationship [the United States] share with [its] allies and partners.” U.S. arms exports to Europe and Africa increased by 45 percent and 10 percent, respectively, in 2015-2019. U.S. arms exports to Asia and the Oceania region decreased by 20 percent, as a result of fewer arms exports to India, Pakistan, Singapore, South Korea and Taiwan. Since 2018, the U.S. has exported almost 100 major weapons to international organizations like the United Nations, the African Union and NATO, the report said, noting that Russia did not send weapons to these organizations. Among the top 10 arms exporters outside Europe and North America, Israel and South Korea showed the biggest increase in exports. Israeli arms exports increased by 77 percent in 2015-2019 — a record for the country, according to the study. South Korea, which showed a 143 percent increase during that same time period, more than doubled its number of export clients. https://www.defensenews.com/2020/03/09/who-were-the-largest-major-arms-exporters-in-the-last-5-years/

  • CEO Q&A: L3’s Chris Kubasik and Harris’s Bill Brown

    October 21, 2018 | International, Aerospace, Naval, Land, C4ISR, Security

    CEO Q&A: L3’s Chris Kubasik and Harris’s Bill Brown

    BY MARCUS WEISGERBER Soon after the companies announced plans to form the world's 7th-largest defense firm, the CEOs rang up for a joint interview. On Sunday, just after L3 Technologies and Harris Corp. announced their planned merger next year, I chatted with CEOs Chris Kubasik and Bill Brown about their plans to form L3 Harris Technologies, which would be the world's 7th-largest defense firm. Here are some excerpts. Q. How did this come together? Brown: Chris and I have known each other for a number of years here, and a lot of it started more socially, not from a business perspective. We work in the same space as complimentary businesses, complementary portfolios. Same [main] customer. You know we realized, given where we stack up in the defence hierarchy, this would be a great potential combination. We've been discussing it through the balance of this calendar year. [It] really picked up steam in the summer and were able to bring it forward here towards middle October. Q. Why a merger rather than an acquisition by one partner? Kubasik: Both companies are quite strong, and we're both on an upswing, and we looked at all the different stakeholders from the customers, the shareholders and the employees. And in our relative size and market value, a merger vehicle seems to be the absolute right way to go here. True partnership, as you've probably seen. 50/50 board. Bill and I have our leadership laid out clearly. It's absolutely the right way to do this. We're quite proud that we're able to pull it off. And I think it's the best way to serve all the stakeholders. Q. Bill is going to be CEO until a transition to Chris in a couple of years. How will that work? And what happens to L3's New York office if the headquarters moves to Florida? Brown: The combination in bringing these two great companies together is going to take a lot of work. So Chris and I will partner on this, in leading the company [and] clearly doing a lot of the integration. We're going to chair the integration committee together. I'll have responsibility for the enterprise functions, and Chris will keep an eye on the ball in what we do operationally in the business segments making sure that through to the integration we don't miss a beat in our growth agenda, meeting expectations of customers, delivering on programs. It's going to be a shared partnership in bringing the companies together. Kubasik: On a combined basis, we have several thousand employees in the state of New York, a lot in Rochester, of course Long Island and the surrounding areas. We got to do to what we believe is best for the business. When you look at the Space Coast of Florida, the 7,000 or so employees and infrastructure in the Melbourne area, it's an easy decision. We'll be transitioning from the headquarters from New York and taking the best of the best and moving to Florida. At some point the Manhattan office will either be significantly scaled down or ultimately closed. Q. Will the combined company divest or combine overlapping sectors? Bill Brown: Very high and complimentary portfolios. So we see very, very, very little overlap. Q. L3 has been on an acquisition spree in recent years. Should we expect more, perhaps in the maritime sphere? Kubasik: Job one is going to be the integration for the first couple years, so there will be very, very few, if any, acquisitions the first couple of years. They would have to be a once-in-a-lifetime opportunity. We're going to focus first and foremost on integrating this company. Once we get this integrated, which is a three-year program, we'll update and modify the strategy as appropriate. Correction: An earlier version of this article misstated the proposed merged company's rank by revenue among global defense firms. This Q&A is part of the weekly Global Business Brief newsletter by Marcus Weisgerber. Find the rest of this week's issue here,and subscribe to get it in your inbox, here. https://www.defenseone.com/business/2018/10/q-ceos-chris-kubasik-and-bill-brown-l3-technologies-and-harris-corps/152135

  • Four technologies Japan and the US should team on to counter China

    April 20, 2020 | International, Aerospace, Naval, Land, C4ISR

    Four technologies Japan and the US should team on to counter China

    Aaron Mehta WASHINGTON — The U.S. and Japan need to expand their collaboration on defense technologies in the future, with a specific focus on four technologies that can help counter the rise of China, according to a new report released Friday by the Atlantic Council. The report also highlights the ongoing discussions about U.S. involvement in Japan's next domestic fighter program as a high-stakes situation that could dictate industrial cooperation between the two nations for years. “The most important component of cooperation on defense capabilities is direct coordination and collaboration on emerging technologies and capabilities,” write authors Tate Nurkin and Ryo Hinata-Yamaguchi, identifying unmanned systems, hypersonic/hyper-velocity missiles, and the defense applications of AI as three key areas where the U.S. and Japan need to start working together on. “These three areas are at the center of the intensifying U.S.-China military-technological competition. They are key to challenging or upholding military balances and stabilizing imbalances in and across key domain-area competitions — strike versus air and missile defense or undersea — on which regional and, over time, global security is at least partly based,” the authors note. Specifically, the authors identify four project areas that both fit into U.S. strategy and Japan's regional interests, while also matching industrial capabilities: Swarming technology and the loyal wingman: For several years the Pentagon has been investing R&D funding into the development of drones that can be slaved to a fighter jet, providing a “loyal wingman” controlled by the one pilot. Drone swarms are another area of heavy investment. Both concepts fit for Japan, whose Ministry of Defense expressed interest in both concepts going back as far as 2016. Unmanned underwater vehicles and anti-submarine warfare capabilities: China has invested heavily in submarines over the last decade, both manned and unmanned. The U.S. has also begun investing in UUV capabilities, but while Japan's IHI has developed a domestic UUV, the MoD has yet to go all in on the capability. The authors note it is a logical area of collaboration. AI-enabled synthetic training environments: The U.S. and Japan ran a joint synthetic training exercise in 2016, but the authors would like to see development expanded in the future. “Given both countries' need to accelerate training, their shared competency in machine learning and virtual and augmented reality, and a highly fractured simulation and training market, there is potential for a collaborative program to develop a synthetic simulation and training capability, to stress the specific operational contingencies to which US and Japanese forces will have to respond,” they write. Counter-unmanned systems: The entire world seems to be investing in weapons to counter unmanned systems, but the authors see a solid spot for the two nations to find workable technologies together. Japan's acquisition group is currently testing a “high-power microwave generation system” for this mission. That all sounds good on paper, the authors acknowledge, but there are very real challenges to increasing technology development between the two countries. Japan's modernization priorities are best viewed through a defensive lens, designed to protect the island nation. That's a contrast to America's posture in the region, which tends more towards force projection. In addition, Japan lags in military space and cyber operations compared to the U.S., making cross-domain collaboration challenging in several areas. Those negotiations have also been impacted by “different perceptions of the nature of joint technology research,” the authors write. “U.S. defense officials have ‘emphasized operational concepts and capability requirements as the basis for collaboration,' while Japanese officials have ‘continued to focus on technology development and industrial base interests.'” Other challenges include Japan's 1 percent-of-GDP cap on defense spending, as well as the state of Japan's defense industry, which until 2014 was focused entirely on serving the Japanese government's needs. Hence, the industry, while technically very competent, is also relatively small, with limited export experiences – and Tokyo has an interest in protecting that industry with favorable contracts. Meanwhile, U.S. firms have concerns about “potentially losing revenue, transfer of sensitive technologies, and the potential replacement of US companies with Japanese ones in critical supply chains,” the authors write. Some of those issues have come to the forefront in the ongoing discussions about what role American firms can play in Japan's ongoing fighter development program. Japan recently rejected an offer by Lockheed Martin of a hybrid F-22/F-35 design, stating that “developing derivatives of existing fighters cannot be a candidate from the perspective of a Japan-led development.” Getting the F-3 deal right will have long term implications for how the two nations develop capabilities together, the authors warn, quoting defense analyst Gregg Rubinstein in saying “Successfully defining a path to U.S.-Japanese collaboration on this program could make the F-3 an alliance-building centerpiece of cooperative defense acquisition” while failure to do so could “undermine prospects for future collaboration in defense capabilities development.” Putting aside the internal issues, any collaboration between the U.S. and Japan has to be considered through the lens it will be see in Beijing and, to a lesser extent, Seoul. “Even marginal differences in perception produce limits to the parameters of U.S.-Japan joint development of, and coordination on, military capabilities. Especially provocative programs like joint hypersonic-missile development will be viewed as escalatory, and will likely generate a response from China,Russia, and/or North Korea that could complicate other trade or geopolitical interests that go beyond Northeast Asia,” the authors warn, noting that China could attempt to exert more pressure on the ASEAN nations as a counterweight. Additionally, South Korea would likely “see substantial U.S.-Japan collaboration not through an adversarial lens, but certainly through the lens of strained relations stemming from both historical and contextual issues, further complicating U.S.-Japan-Republic of Korea trilateral cooperation.” https://www.c4isrnet.com/global/asia-pacific/2020/04/16/four-technologies-japan-and-the-us-should-team-on-to-counter-china/

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