19 février 2020 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

New joint ventures hint at ‘burgeoning relationship’ between Israel and India

By: Seth J. Frantzman

JERUSALEM — Israel and India are deepening defense industry ties as Israeli companies seek long-term partnerships through India's efforts to encourage products to be locally produced under joint ventures.

Earlier this month, Israel Aerospace Industries and India's Bharat Electronics Limited signed a memorandum of understanding to establish a new center for technical and maintenance support for India's air defense systems. In addition, IAI on Feb. 5 signed a strategic collaboration memorandum with Indian firms Hindustan Aeronautics Limited and Dynamatic Technologies Limited to work on UAVs that will be made in India.

Sales have historically surpassed more than $1 billion annually, making India not only a core country for Israel's defense sales, but also strengthening the bilateral strategic partnership. IAI deals in 2017 included a $2.5 billion deal for Barak 8 missiles and $1.3 billion for surface-to-air missiles, with further deals in 2018, according to the company.

In the wake of the early February defense expo in Lucknow, India, IAI stressed that the Asian nation is one its main partners. “The important partnership is characterized by long-term collaboration, joint development and production, energy transfer, and technical support over many years,” according to Nimrod Sheffer, IAI's president and CEO.

The sentiment was echoed in interviews across Israel's major defense companies. Elbit Systems sees India is a strategic market, noting that it is “involved in a range of programs across the Indian defense sector.” Rafael Advanced Defense Systems said it has been doing business in India for more than two decades “supporting the Indian Armed forces with state-of-the-art systems.”

As part of bilateral relations, trade may be boosted to $20 billion in the coming decades from the $5 billion level at which it currently stands, according to the Begin-Sadat Center for Strategic Studies. India has been a consumer of Israeli arms exports for several decades, accounting for 49 percent of Israeli arms exports from 2013 to 2017, according to one count at Israeli media outlet Calcalist. And India was Israel's largest purchaser of arms in 2017 alone, though purchases here decreased in 2018.

India is one of the core countries involved in the International Defense Cooperation Directorate under Israel's Ministry of Defense. Known by its acronym SIBAT, the directorate in the government's outreach arm to the defense industry. Of $7.5 billion in defense exports in 2018, 46 percent went to Asia, Globes reported. Israeli companies have not divulged what percent of that went to India, but it is considered to be substantial. Last year's trade numbers are still being calculated, according to Israel's MoD.

“My sense is that both India and Israel see this as a burgeoning relationship, not just arms trade," Jonathan Spyer, a research fellow at the Jerusalem Institute for Strategy and Security, told Defense News. "After Russia, Israel is India's second-largest source for defense [acquisition] — there is a strong sense of shared challenges in the area of terrorism.”

Spyer, who has taken part in recent policy discussions and roundtables about India-Israel relations in Tel Aviv and New Delhi, says India admires Israeli defense companies' speed and lack of bureaucracy that has helped their growth in the the markets of air defense and UAVs. However, as the Center for a New American Security think tank notes, “India's weapons procurement is complex and slow in no small part because of India's desire to indigenize production.”

‘The sky is the limit'

Still, the relationship between India and Israel is evolving. India's economic policy “Make in India” means that foreign companies wanting business in India must work alongside domestic companies and develop products locally. And Israeli companies have indeed partnered with Indian firms via joint ventures.

For instance Elbit established a joint venture with Adani Defence in Hyderbad for the production of Hermes drones in 2018. Adani Defence noted that the 50,000-square-foot facility is the first outside of Israel for manufacturing the Hermes 900 medium-altitude, long-endurance UAV. Another joint venture with Alpha Design Technologies was also launched with Elbit in recent years, and the Israeli firm also works with Bharat Electronics in the field of electronic warfare and electro-optics.

And IAI inked MOUs with three Indian companies this month. Bharat Electronics' marketing director said Feb. 5 that the collaboration would enhance its offerings and provide an immediate and optimized maintenance solution for air defense systems.

“The sky is the limit,” said Ze'ev Mivtzari, IAI's corporate vice president of marketing for India. “It's a big change from five years ago.” Mivtzari, a former Israeli defense attache to India, pointed to the strengthening of bilateral ties seen in recent years.

It's Israel's advanced technology that attracts India as it seeks to upgrade its armed forces. High-altitude and medium-altitude UAVs such as the Heron and multimission tactical Searcher could help India protect its border and sensitive sites.

The same is true for air defense systems. India has acquired the Israel-developed Barak missile line for its medium-range surface-to-air missile requirement. Working with India's Defence Research and Development Organisation, IAI hopes to increase sales of the missile by setting up production lines in India.

“If you want to work in India, you don't just sell products, you need to create your own ecosystem,” the Israeli firm said. It's that ecosystem that Israeli companies are targeting. The ecosystem for IAI now includes more than 100 local Indian companies with which it works.

Like IAI, Rafael's interaction with India goes back decades and involves the Asian nation's Army, Navy and Air Force. Rafael's ecosystem is in Hyderbad, where it's focusing on missiles, air defense systems, communications technology and electronic warfare capabilities.

“The common ground for all our programs, with the Army, Navy and Air Force, is modernization. Some of them are upgrades to existing equipment, some are procurement. The Indian market is big and will remain big,” Rafael has said. The company currently works with India on the SPYDER air defense system and Spike missiles, and it showcased its sea-based air defense system C-Dome, based on the Iron Dome, at a recent defense expo in Lucknow.

Rafael is also discussing its Drone Dome system, which protects against smaller drones. A recent test showed the system can use lasers to simultaneously stop multiple drones.

In the market of communications systems, Rafael seeks to increase sales of its BNET system is India, and it's also pushing its Typhoon remote controlled weapons system for naval platforms.

UVision, an Israeli company that makes loitering munitions, also signed a deal this month with India's Aditya Precitech to set up a joint venture to manufacture the PALM (precision attack loitering munition) Hero system. UVision's company in India is called AVision.

Pivot east

Israel's MoD characterizes the bilateral relationship as meaningful and involving “vast cooperation” between the two defense industries. The deepening defense and strategic relationship is part of India's multi-decade political and strategic shift, as it moves away from its former link to the Soviet Union in the 1980s, and improves ties with Israel and the United States. This complement's Israel's pivot eastward.

But there are differing security priorities between New Delhi and Jerusalem. India is more concerned about China, while Israel is wary of Iran. Though the bilateral relationship has still grown under Israeli Prime Minister Benjamin Netanyahu and Indian Prime Minister Narendra Modi, and their meetings in 2017 and 2018 that resulted in government-to-government agreements.

The ecosystem built by joint ventures between Israeli and Indian defense companies is complex and involves sensitive defense technology, know-how from which India hopes to acquire to lessen its dependence on foreign defense imports.

Spyer, the analyst out of Israel, said there is bipartisan consensus in both countries to advance the existing relationship. “It is a really important element of Israel's strategic stance and the broader pivot to Asia. No other burgeoning relationship, whether Vietnam, South Korea, Singapore or Japan, has the dimensions, depth and shared interests as India does for Israel.”

https://www.defensenews.com/industry/2020/02/18/new-joint-ventures-hint-at-burgeoning-relationship-between-israel-and-india/

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  • Congress to buy 3 more LCS than the Navy needs, but gut funding for sensors that make them valuable

    19 septembre 2018 | International, Naval

    Congress to buy 3 more LCS than the Navy needs, but gut funding for sensors that make them valuable

    WASHINGTON — Congress loves buying littoral combat ships, but when it comes to the packages of sensors and systems that make the ships useful, lawmakers have been less enthusiastic. In the 2019 Defense Department funding bill that just left the conference committee, lawmakers have funded a 33rd, 34th and 35th littoral combat ship, three more than the 32-ship requirement set by the Navy. But when it comes to the mission modules destined to make each ship either a mine sweeper, submarine hunter or small surface combatant, that funding has been slashed. Appropriators cut all funding in 2019 for the anti-submarine warfare package, a variable-depth sonar and a multifunction towed array system that the Navy was aiming to have declared operational next year, citing only that the funding was “ahead of need." The National Defense Authorization Act had authorized about $7.4 million, still well below the $57.3 million requested by the Navy, citing delays in testing various components. Appropriators are also poised to half the requested funding for the surface warfare package and cut nearly $25.25 million from the minesweeping package, which equates to about a 21 percent cut from the requested and authorized $124.1 million. Nor are this year's cuts the only time appropriators have gone after the mission modules. A review of appropriations bills dating back to fiscal 2015 shows that appropriators have cut funding for mission modules every single year, and in 2018 took big hacks out of each funding line associated with the modules. The annual cutting spree has created a baffling cycle of inanity wherein Congress, unhappy with the development of the modules falling behind schedule, will cut funding and cause development to fall further behind schedule, according to a source familiar with the details of the impact of the cuts who spoke on background. All this while Congress continues to pump money into building ships without any of the mission packages having achieved what's known as initial operating capability, meaning the equipment is ready to deploy in some capacity. (The surface warfare version has IOC-ed some initial capabilities but is adding a Longbow Hellfire missile system that will be delayed with cuts, the source said.) That means that with 15 of the currently funded 32 ships already delivered to the fleet, not one of them can deploy with a fully capable package of sensors for which the ship was built in the first place — a situation that doesn't have a clear end state while the programs are caught in a sucking vortex of cuts and delays. “This is a prime example of program issues causing congressional cuts which lead to further delays, then more cuts in a vicious cycle," said Thomas Callender, a retired submarine officer and analyst with The Heritage Foundation. The Navy has been pursuing a strategy of buying 32 littoral combat ships and then 20 more lethal frigates now in development. Surface warfare boss Vice Adm. Richard Brown told Defense News in August that both the surface warfare package and the anti-submarine warfare package were on track to be ready in 2019, but that future is now in doubt, Callender said. “The appropriators' FY19 cuts of zeroing out ASW module and cuts to the MCM [mine countermeasures] module will likely delay IOC and operational testing,” Callender said. But the appropriators shouldn't take all the heat, he added. The development of the different modules have hit technical issues and are all drastically behind schedule. The minesweeping package, for example, was initially supposed to deliver in 2008, but now isn't slated to IOC until 2020, a date that will be further in doubt if Congress passes the appropriations bill as it left committee, sources agreed. “The technical development issues and subsequent delays with several modules, especially the ASW and MCM mission packages, contributed to congressional angst and some of these cuts,” Callender said. “Many of these cuts, including the cuts recommended from the House Armed Services Committee and Senate Armed Services Committee for FY19 were reductions in the number of initial modules purchased until they have successfully completed operational testing.” Both authorizers on the House and Senate Armed Services committees and the Appropriations committees have taken hacks at the funding to the modules, but ultimately the National Defense Authorization Act from the services committees is more of a guide for appropriators than a set of handcuffs. Appropriators can fund what they want to fund. A statement from the office of Senate Appropriations Committee Chairman Sen. Richard Shelby, R-Ala., said the committee works with the Navy on these programs and funds what is ready to be funded. “The Committee has worked with the Department of the Navy to understand the mission system test requirements — which have often changed due to variety of reasons — and focused on funding those requirements that are ready for production,” said Blair Taylor, Shelby's communications director. Merry-go-round Part of the reason the program is vulnerable to these cuts in a way that, for example, the Arleigh Burke destroyers are not to the same extent is because of the program's structure. The ships were to be purchased separately and designed to be highly versatile, switching out in a matter of days when pierside from anti-surface systems to countermine systems to anti-submarine systems as the missions changed. But a reorganization of the program in 2016 ordered by Chief of Naval Operations Adm. John Richardson and led by then-head of the Naval Surface Force Pacific Adm. Thomas Rowden changed each of the ships to single-mission ships, with the first few ships slated to be surface warfare variants. But the warfare packages are still being developed under separate programs, leaving them as low-hanging fruit for cuts. “The separation of the mission modules from specific LCS hull procurement does leave them more vulnerable to these type of programmatic cuts,” Callender said. The whole issue is taking on increasing urgency as LCS builders Fincantieri in Marinette, Wisconsin, and Austal USA in Mobile, Alabama, begin pushing ships to the fleet by the handful each year. As of August, the Navy had 15 LCS vessels delivered, with 29 awarded and 11 in various stages of construction. But as the development modules has devolved into a merry-go-round, where cuts beget delays that beget more cuts, the fix in which this puts the Navy becomes more real by the day. The fleet needs the capabilities the LCS modules are supposed to deliver. For example, the Navy is slated to decommission its last Avenger-class minesweeper in the 2020s. This means the minesweeping package really can't suffer too many more delays without greatly increasing the threat posed to the Navy by cheap marine mines, leaving the fleet with only ad hoc solutions for combating them until the minesweeping package can be fielded in numbers. And while there are other ships in the fleet such as the DDGs that can do anti-submarine and anti-surface missions, it's the minesweeping package that has Bryan McGrath, a retired destroyer skipper and consultant with The FerryBridge Group, worried. “I'm concerned that there aren't enough MCM modules coming along fast enough, and I am concerned that there aren't enough LCS in the current plan (four on each coast) dedicated to the MCM mission,” he said. “I'd like to see the LCS plan re-evaluated and more of them devoted exclusively to MCM.” https://www.defensenews.com/naval/2018/09/18/congress-to-buy-3-more-lcs-than-the-navy-needs-but-gut-funding-for-sensors-that-makes-them-valuable

  • Dubai Airshow - Previous Years Defense Highlights

    12 novembre 2021 | International, Aérospatial

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  • There are Turkish jets in the Pentagon’s latest F-35 deal. Here’s why that’s not a big problem.

    14 juin 2019 | International, Aérospatial

    There are Turkish jets in the Pentagon’s latest F-35 deal. Here’s why that’s not a big problem.

    By: Valerie Insinna WASHINGTON — The Pentagon's latest deal with Lockheed Martin for new F-35 jets includes some for Turkey, raising the question of what will happen if the country is pushed out of the program. The handshake agreement announced Monday totals about $34 billion for 478 new F-35s over lots 12 through 14, including about five to 10 jets for Turkey per lot, one source told Defense News. But that might not complicate the process of finalizing the contract agreement, aerospace analysts and other sources close to the program said — even as the Defense Department begins “unwinding” Turkey's participation in the program. At issue is Turkey's purchase of the S-400, a Russian air defense system that U.S. and NATO officials say is at odds with the alliance's plan to field the F-35. Despite months of discussions between Ankara and Washington, Turkish leaders have emphatically maintained that it will not cancel the S-400 order. In response, acting U.S. Defense Secretary Patrick Shanahan on June 6 approved a plan to strip Turkey from the F-35 program. Turkish pilots and maintainers undergoing training at U.S. bases are required to leave the United States by July 31, and contracts with Turkish defense companies could end in 2020. Ankara has since doubled down on its intent to buy the S-400. Turkish President Recep Tayyip Erdogan said Wednesday that the purchase is already “a done deal” and that the Russian air defense system will be delivered in July, according to Reuters. “We will call to account in every platform Turkey being excluded from the F-35 program for reasons without rationale or legitimacy,” Erdogan said. So what if Turkey leaves? Sources told Defense News that Turkey's potential exit from the program isn't expected to have much of an impact on the deal for lots 12 through 14. The Pentagon hasn't provided exact costs per unit for the new F-35s, but it has acknowledged that unit flyaway costs will decrease by about 8.8 percent in Lot 12, made up of 157 jets. The department also estimates unit prices will drop by about 15 percent from Lot 11 to Lot 14 across all variants. By that framework, F-35 customers will be able to buy an F-35A conventional-takeoff-and-landing model for less than $80 million by Lot 13 — one year earlier than expected. That isn't expected to change, even if Turkey is knocked from the program, a department source said. Rebecca Grant of IRIS Independent Research said it's likely the number of jets and the negotiated prices in the handshake agreement will stand, adding that the Defense Department still has options on the table. “They can let Turkey go ahead and have those jets [and] park them in the desert [until this issue is resolved]. They can switch to a customer that wants earlier deliveries — also an option,” she said. Dealing with these types of problems isn't new for the United States, added Grant, who pointed to the U.S. arms embargo on Pakistan in 1990, which resulted in the country's F-16s being placed into storage. Richard Aboulafia, an aerospace analyst at the Teal Group, said there are multiple ways for the Pentagon to deal with the fallout of a Turkish exit from the program. Countries like Singapore and Poland, which have expressed interest in buying F-35s, could join the program and pick up the slack. If Congress adds F-35s to upcoming budget cycles — which has been typical in recent years — the U.S. armed services could buy Turkey's jets. “I really don't see it as a challenge,” Aboulafia said. “This is not the same as building white tails in the commercial aviation business.” Another option was outlined by Marillyn Hewson, the head of F-35 manufacturer Lockheed Martin, in May: Sell Turkey's jets to existing international customers. “It's not a significant number of aircraft that if there was a sanction that they couldn't receive those aircraft now or in the future; it will be backfilled,” she said at Bernstein's Strategic Decisions Conference, according to Defense One. “In fact, a lot of countries say: ‘We'll take their [production line] slots.' They [other countries] really want the aircraft. I don't envision that being an impact on us from a Turkey standpoint.” U.S. officials remain hopeful that Turkey will cancel its S-400 order, and they have made it clear that Turkey's participation in the F-35 program will continue if that happens. “Turkey still has the option to change course. If Turkey does not accept delivery of the S-400, we will enable Turkey to return to normal F-35 program activities,” Ellen Lord, the Pentagon's acquisition chief, said June 7. The U.S. government is no rush to expel Turkey from the program, Grant said. Including Turkey in the current contract negotiations helps send that message. “We need Turkey in NATO, and we'd like to see a Turkish Air Force with F-35s,” she said. “This is going to take some diplomacy.” Aboulafia noted that Turkey benefits from its involvement in the F-35 program, with its companies manufacturing parts for the jet's F135 engine and a second supplier providing the center fuselage. The country has made the development of its defense industry a priority, and risks becoming a cottage industry if it alienates its NATO allies, he said. “This does not do it any favors. They are going to have to line up partners and programs very fast," he added. But the prospect of a happy resolution is looking increasing grim, he said. “There is no room for compromise [on the U.S. side], and on the other side you have a populist, who is making this a test of his leadership. There is a lot of ego here.” https://www.defensenews.com/air/2019/06/13/there-are-turkish-jets-in-the-pentagons-latest-f-35-deal-heres-why-thats-not-a-big-problem/

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