Back to news

July 31, 2019 | International, Aerospace, Naval, Land, C4ISR, Security

UK defense exports set new record in 2018

By: Andrew Chuter

LONDON — Sales of Typhoon jets to Qatar and F-35 related components to the U.S. were largely behind a record breaking year which saw British defense exports in 2018 reach £14 billion, according to new figures released July 30 by the Department for International Trade(DIT).

Export sales rose by £5 billion compared with 2017, boosting the British into second place in terms of global defense exports and pushing Russia and France into third and fourth place, respectively, for the year.

The DIT report illustrates how reliant Britain is on Middle East partners like Saudi Arabia and Qatar for its high performing exports business. The report shows that close to 80 percent of all British defense exports came from the region last year. Anti-arms campaigners in Britain are currently mounting a challenge against the legality of some previous defense exports to the Saudis.

Over the last ten years, the Middle East, North America and Europe have provided the biggest markets for the British, in that order.

The figures were provided by the DIT's defense and security arm, known as the Defence and Security Organisation (DSO). According to the DSO, the British took an estimated 19 percent share of the defense export market for 2018, compared with 14 percent by Russia and 9 percent by France.

As is the case every year, the U.S. arms industry continued to dominate the world market, with DSO figures putting the Americans in control of 40 percent of a global export market, at $100 billion for 2018, according to the government department.

The vast majority of British defense exports are from the air market sector. Around 96 percent of export sales last year were generated from defense aerospace, with the Typhoon sales to Qatar and an accompanying deal to purchase Brimstone missiles a major driver in Britain's good year.

The other major factor is the ramp up in the supply of items for the F-35 production line. Britain is the biggest overseas partner on the F-35 build program with BAE Systems and Rolls-Royce among a number of important suppliers.

This lack of diversification is a concern for London. France, for example, may not have done as well as the British last year overall, but a number of defense industry sectors contributed to what turned out to be a good performance.

French exports rose to €9.1 billion, a 30 percent rise from 2017. It's biggest customers last year were Qatar, including Rafale fighter jets and NH-90 helicopters; Belgium, with Griffon and Jaguar armored vehicles; Saudi Arabia, including patrol vessels; and Spain, for NH-90 helicopters.

“It is worth noting that the portfolios of major competitors to the UK, such as the USA and France, appear slightly less unbalanced than the UK's, and therefore, these supplier nations are less exposed to sector fluctuation,” noted the DIT report.

The good news for the UK: this year should go some way to redressing the balance between the British export sectors. The major maritime success of the Type 26 anti-submarine frigate, selected by both Australia and Canada, should starting appearing in the export data for 2019.

Security equipment exports also continued to grow last year, the DIT reported, rising 7.2 percent from 2017 and crossing the £5 billion barrier. Almost half the exports went to Europe, with the North American market accounting for 18 percent of the sales.

Cyber accounted for roughly 40 percent of those exports.

https://www.defensenews.com/global/europe/2019/07/30/uk-defense-exports-set-new-record-in-2018/

On the same subject

  • Lockheed drops bid to design FFG(X)

    May 31, 2019 | International, Naval

    Lockheed drops bid to design FFG(X)

    By: Aaron Mehta WASHINGTON — Lockheed Martin has decided not to submit a version of its Freedom-class littoral combat ship for the Navy's next-gen frigate design competition. The contractor's move to abandon its bid to become the prime contractors on the FFG(X) deal leaves four rivals in the running — Huntington Ingalls Industries, Austal USA, Fincantieri and General Dynamics Bath Iron Works. But the world's largest defense firm still intends to bid on capabilities involved in the FFG(X). “After careful review, we have decided to focus our attention on the FFG(X) combat system, delivering Lockheed Martin technologies such as the Aegis-derived weapon system, MK 41 Vertical Launching System, anti-submarine warfare processing, and advanced electronic warfare,” the company said in a statement released late Tuesday. “We will continue to serve as a shipbuilder for the U.S. Navy, and we're exploring opportunities including unmanned surface vessels and the large surface combatant.” The news was first reported by USNI on Tuesday. The FFG(X) grew out of a 2014 requirement for an up-gunned frigate that could survive brutal combat at sea, a problem critics raise about the LCS, a vessel that was developed for sneaky missions near shorelines. The goal of the new frigate design is to both integrate with, and complement, the carrier strike group and operate as a distributed node in a sensor network, officials say. Planned capabilities include anti-surface warfare, anti-submarine warfare, electromagnetic maneuver warfare and air warfare. The Navy asked for $1.3 billion for the first FFG(X) hull in 2020 but estimates each subsequent frigate will run closer to $800 million. David B. Larter in Scotland contributed to this story https://www.defensenews.com/naval/2019/05/29/lockheed-declines-to-bid-for-ffgx-design

  • OSI Systems Awarded $8 Million Contract for Cargo and Vehicle Inspection Systems

    July 19, 2019 | International, Land, Other Defence

    OSI Systems Awarded $8 Million Contract for Cargo and Vehicle Inspection Systems

    HAWTHORNE, Calif.--(BUSINESS WIRE)--OSI Systems, Inc. (the “Company” or “OSI Systems”) (NASDAQ: OSIS) today announced that its Security division was awarded a contract valued at approximately $8 million by a U.S. government customer to provide cargo and vehicle inspection systems. OSI Systems' Chairman and CEO, Deepak Chopra, stated, “We are pleased to receive this award and look forward to delivering our advanced technology solutions that are designed to provide enhanced imaging to help identify impermissible items.” About OSI Systems OSI Systems is a vertically integrated designer and manufacturer of specialized electronic systems and components for critical applications in the homeland security, healthcare, defense and aerospace industries. The Company combines more than 40 years of electronics engineering and manufacturing experience with offices and production facilities in more than a dozen countries to implement a strategy of expansion into selective end product markets. For more information on OSI Systems or its subsidiary companies, visit www.osi-systems.com. News Filter: OSIS-G Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements relate to OSI Systems' current expectations, beliefs, and projections concerning matters that are not historical facts. Forward-looking statements are not guarantees of future performance and involve uncertainties, risks, assumptions, and contingencies, many of which are outside OSI Systems' control and which may cause actual results to differ materially from those described in or implied by any forward-looking statements. Undue reliance should not be placed on forward-looking statements, which are based on currently available information and speak only as of the date on which they are made. OSI Systems assumes no obligation to update any forward-looking statement made in this press release that becomes untrue because of subsequent events, new information, or otherwise, except to the extent it is required to do so in connection with its ongoing requirements under Federal securities laws. For a further discussion of factors that could cause OSI Systems' future results to differ materially from any forward-looking statements, see the section entitled "Risk Factors" in OSI Systems' most recently filed Annual Report on Form 10-K and other risks described therein and in documents subsequently filed by OSI Systems from time to time with the Securities and Exchange Commission. SOURCE: OSI Systems, Inc. https://www.businesswire.com/news/home/20190717005233/en

  • Contracts for July 19, 2021

    July 20, 2021 | International, Aerospace, Naval, Land, C4ISR, Security

    Contracts for July 19, 2021

    Today

All news