Nouvelles

By: Burak Ege Bekdil ANKARA, Turkey — Kenya's military has ordered 118 four-wheel drive personnel carriers from Turkish armored vehicles manufacturer Katmerciler. Kenya Defence Forces spokesperson Col. Zipporah Kioko told local press that the Ministry of Defence is finalizing the deal for the mine-resistant, ambush-protected Hizir vehicles through Turkey's Export Credit Agency. “The Hizirs will provide the Kenyan troops protective mobility wherever they are deployed,” a Katmerciler official said. Kenya's military will primarily deploy the Hizir vehicles for counterterror operations against the al-Shabab militant group. The company official declined to comment on how soon the contract would be finalized, but a Turkish procurement source said the deal should be inked in a matter of weeks, if not days. The procurement source put the price of the contract at “nearly €60 million” (U.S. $73 million). Last month, Turkey and Tunisia signed a $150 million deal for the sale of scores of Turkish-made defense equipment, including BMC's Kirpi MRAP vehicles and Nurol's Ejder Yalcin four-wheel drive armored combat vehicles. “The deal augments the penetration into the African market of Turkish armored vehicles,” the Turkish procurement official said. Sources said Katmerciler defeated South African and North American rivals for the Kenyan contract. The Katmerciler official said the Hizir has a proven track record in Syria, where Turkish forces operate and face similar threats as Kenyan troops face along the border with Somalia. Tested in the Netherlands and certified by NATO, the Hizir can be used in various configurations, such as combat; command and control; chemical, biological, radiological and nuclear defense; weapon carrier; ambulance; border security; and reconnaissance. The vehicle is fitted with Turkish company Aselsan's Stabilized Advanced Remote Weapon Platform, which can be installed on tactical vehicles, fixed surveillance posts, towers and critical infrastructure. Depending on the operational requirements, remote weapon platform can be equipped with a 12.7mm machine gun, a 40mm automatic grenade launcher or a 7.62mm machine gun. The turret has advanced capabilities and options such as a fire-on-the-move capability, day and night imaging, automatic target tracking, laser range finder for accurate ballistics, last-round warning, and manual backup. The vehicle, which can carry up to nine personnel, is also equipped with a smoke grenade launcher on the top of the vehicle. It is designed on a V-hull monocoque chassis to increase vehicle and crew survivability by deflecting an upward directed blast — such as from a landmine or improvised explosive device — away from the vehicle. https://www.defensenews.com/land/2021/01/27/kenya-orders-118-armored-vehicles-from-turkey

By: Valerie Insinna Edited on 1/27/21 at 1:44 p.m. to provide more details on the cost overrun. WASHINGTON — With the Jan. 27 announcement of a new $275 million charge on the KC-46, Boeing has now paid as much in cost overruns for the troubled program as the U.S. Air Force invested in the tanker's development. The new charge, which the company reported as part of fourth-quarter 2020 earnings, means Boeing has now paid more than $5.0 billion out of pocket to pay for the myriad technical problems and production issues that have cropped up since the company won the program in 2011. Under the firm, fixed-price contract signed then, Boeing is responsible for paying for any costs in excess of the contract's $4.9 billion ceiling. The latest KC-46 overrun occurred “primarily due to production inefficiencies including impacts of COVID-19 disruption,” the company said. Steve Trimble of Aviation Week put together a list of KC-46 charges by year, finding that the program documented its largest overrun in 2020 despite seeing charges decrease to only $148 million in 2019. The company previously attributed $494 million in charges to the ongoing pandemic during the first, second and third quarters of 2020. The KC-46 is a commercial-derivative plane based on the Boeing 767 airliner. Because it is manufactured on the 767 production line in Everett, Washington, before undergoing military-specific upgrades, any slowdown in commercial plane volume also makes it more expensive to produce the KC-46. Boeing President and CEO Dave Calhoun said in October he believed the KC-46 had moved past the technical problems that plagued the program over the past few years, and the tanker would prove to be an asset for the company after the pandemic had run its course. “The tanker has been a drag on us for three or four years in every way you can think of with respect to investors,” he said at the time. “But we are continuing to clear the hurdle with our customers with respect to its performance in their fleet and their need for that tanker. “That whole relationship, I believe, will begin to transition next year, and opposed to being a drag on our franchise — which it's been — I believe it will become a strength in our franchise.” In an message to Boeing employees on Wednesday, Calhoun pointed to some key wins in the defense and space sector, including the first flight of the MQ-25 tanker drone with an aerial refueling store, and the demonstration of the F/A-18 Super Hornet's ski jump launch capability for the Indian Navy. Over the past month, Boeing has inked contracts with the U.S. Air Force for the sixth and seventh lots of KC-46 production, raking in $3.8 billion for an additional 27 tankers. However, during the earnings call, Calhoun noted that analysts should not count on Boeing's defense business to generate a massive amount of near-term growth in the wake of the pandemic. “We continue to believe that we're going to have stable growth, admittedly at the lower end of the single digits. That's the best guidance that we can talk about because we do believe there is pressure that will ultimately come down as a result of all of the COVID spending here in the United States,” he said. “But a large part of our business now is international market, and the order activity in those international markets is pushed to the right somewhat — and almost entirely because of COVID-related stuff,” he said. “We still like our position because we have a lot of ongoing programs that the military and of course our defense [spending] bills have been kind to.” The Air Force plans to buy 179 KC-46 aircraft over the program of record. The first KC-46 was delivered to the service in 2019. https://www.defensenews.com/industry/2021/01/27/boeings-cost-overruns-on-kc-46-now-exceed-its-initial-contract-with-the-air-force

January 25, 2021 Olivier Andries took over from Philippe Petitcolin as Safran CEO on Jan. 1, after the latter took drastic measures in 2020 to keep the company afloat. The Paris-based equipment manufacturer, a “super-Tier 1” in the aerospace industry, is starting the new year in a relatively good financial position... https://aviationweek.com/aerospace/new-safran-ceo-faces-short-long-term-challenges

Un doublement des plafonds de financement de la banque publique Bpifrance serait à l'étude, afin de remédier à des difficultés de financement à l'export de l'industrie de défense française, rapportent Les Echos. Selon le quotidien, l'Assemblée nationale devrait diffuser, le 17 février prochain, un rapport sur le financement de l'industrie de défense, et devrait faire plusieurs recommandations. Des pistes telles que la formation de référents bancaires aux sujets stratégiques, le renforcement du rôle de Bpifrance à l'export, la création d'une banque à capitaux mixtes dédiée au secteur de la défense, ou encore le développement de fonds de souveraineté, seraient examinées. « Il y a un réel problème de financement bancaire à l'export et il faut absolument remonter les plafonds de garanties de la BPI », estime le député LR Jean-Louis Thieriot, rapporteur sur le sujet à l'Assemblée nationale. Les Echos du 28 janvier

Byron Callan January 26, 2021 The Biden administration probably will not unveil an outyear spending plan for the Defense Department until the late spring of 2021 at the earliest, and more likely it will come out with the fiscal 2023 budget submission in February 2022. The administration should, however, be commenting on some of the bigger changes as different reviews and assessments are completed before that budget plan is released. Consensus now is that Pentagon spending will be flat at least in the first term of the Biden administration, though analysts are not clear on what this means. Will the Pentagon's budget be unchanged from the level that was appropriated for fiscal 2021? Will it be flat in inflation-adjusted terms, which means it would rise at 2% annually in current dollars? Or will the budget be flat in current dollars, which would entail a roughly 2% annual decline in Pentagon purchasing power, assuming inflation is 2%? Each would have different outcomes for the spending that would flow to contractors. Defense optimists could argue that flat budgets historically have not lasted too long. There were periods in which budgets were flat over 2-4 years annually in the late 1950s, early 1960s and mid-1990s. Flat periods, however, were succeeded by growth—usually because of a crisis or a new military contingency. No one has a working crystal ball that will show what is ahead for the 2020s. There are reasons to believe, however, that the 2020s are different. Although interest rates are at historic lows, the ratio of U.S. debt to GDP is at levels seen during World War II. There is pent-up demand for non-defense discretionary spending—notably for infrastructure, and an aging U.S. population will likely demand more health care and other “social” spending. “Endless wars” in the Middle East may temper Americans' willingness to engage in new overseas missions, unless a major provocation occurs that is akin to the 9/11 attacks. The flat budget period could last longer than the post-World War II era suggests. Is “flat” good for contractors? That depends. Markets started to digest that U.S. defense spending was flattening in 2020. The largest U.S. defense contractors underperformed the S&P 500 in 2020 and are doing so again in the first days of 2021. The initial market verdict is that flat is not good. The assessment might be true, but it is going to depend on two factors: how the Pentagon reallocates resources in a flat budget environment and how contractors change their strategies and portfolios. A flat top-line defense budget could be positive if the Pentagon can successfully cut military personnel and operations and maintenance (O&M) spending. Both are tall tasks. Winding down operations in Afghanistan and the Middle East is not going to free up significant troop numbers, and in any event, both are apt to exert gravitational pulls from which the U.S. cannot easily break free. Global security risks are not going to allow the sort of force structure cuts that occurred at the end of the Cold War and the Korean and Vietnam wars. Readiness and training also will remain a priority in this environment. Spending on military personnel and O&M that keeps pace with inflation may place even more pressure on investment. If those accounts grow at 1-2% annually, in a flat top-line period, that will put even more pressure on investment. Still, while there has been no indication so far, it is conceivable that the Biden administration will propose reductions in force structure and will attack O&M costs with more vigor. It will take 1-2 years at least to realize those savings, but they could be applied to modernize a smaller military. For a number of years, the Pentagon attempted to retire older “legacy” weapon systems in order to fund new investment, but Congress has stymied efforts to muster out older Navy cruisers, aircraft carrier refueling systems and aircraft such as the A-10. The Defense Department could renew this line of attack, but it may be reminded of the old adage that repeating the same thing over and over and expecting a different outcome is the definition of insanity. The Pentagon will have to change its approach here by offering more incentives to states and districts that could be affected by the elimination of squadrons or units, and it has to be more forceful in confronting contractors whose net interests are harmed by such moves. A final thought is how contractors' strategies might change. In 2020 and so far in 2021, outperformance was evidenced by small-to-midsize contractors that appeared better aligned with Pentagon investment priorities in artificial intelligence, autonomy, supply chain resilience and low-cost weapons. The largest contractors may be able to unlock value in a flat top-line environment if they can spin off segments that are stagnant or declining. Sprawling program portfolios are apt to perform more in line with market growth rates, and that is not a recipe for superior performance. https://aviationweek.com/defense-space/budget-policy-operations/opinion-are-flat-pentagon-budgets-new-or-new-down

DEFENSE Focus sur le système « Vision », développé par Safran Electronics & Defense et Sodern La Tribune consacre un article au système de visée stellaire diurne et nocturne pour avions militaires, baptisé « Vision », développé par Safran Electronics & Defense et Sodern (filiale d'ArianeGroup). Ce système vise à être « permanent et totalement discret, sans émission de signaux radio électriques, et permettra une navigation précise et sûre, non tributaire de signaux de radionavigation (donc ni brouillable ni leurrable) et totalement souveraine », selon l'Agence de l'innovation de défense. « Ces viseurs d'étoiles diurnes permettront à nos aéronefs d'effectuer leur mission même lorsque les solutions de positionnement par satellites ne sont plus disponibles, comme cela peut malheureusement arriver sur nos thé'tres d'opérations », avait expliqué en juillet dernier la ministre des Armées, Florence Parly, dans un discours prononcé à Limeil-Brévannes au sein de Sodern. Lancé en 2016 par la DGA (Direction générale de l'armement), le projet vient de franchir une étape importante, avec la réalisation « d'essais au sol et en vol couronnés de succès », a récemment fait savoir l'Agence de l'Innovation de défense. Au terme de son développement, cet équipement permettra aux forces armées françaises de s'affranchir de toute dépendance aux systèmes de positionnement par satellites GNSS, notamment au GPS et à Galileo. La Tribune du 28 janvier

Selon le magazine Challenges, les fonds français HLD et PAI Partners discuteraient du rachat de Photonis, la pépite française de la vision nocturne, dont l'Etat a bloqué la vente à l'américain Teledyne en décembre dernier. Un rapprochement avec Lynred, coentreprise de Safran et Thales, spécialisée dans les détecteurs infrarouges, serait envisagé, avec le soutien de Bpifrance. Un tel rapprochement permettrait la création d'un nouveau champion français de l'infrarouge et de l'intensification de lumière. Challenges du 28 janvier

DEFENSE Entretien avec Eric Trappier, Président du GIFAS et PDG de Dassault Aviation Eric Trappier, Président du GIFAS et PDG de Dassault Aviation, était invité sur Europe 1 mardi 26 janvier. Le dirigeant a souligné que la signature du contrat de vente de 18 avions de combat Rafale à la Grèce, qui s'inscrit dans la continuité d'un partenariat historique, représente également « un tournant », puisqu'il s'agit du premier contrat Rafale signé en Europe. Ce contrat met en évidence l'interopérabilité de l'avion de combat avec les alliés de la France. La construction de 18 avions Rafale (6 appareils destinés à la Grèce et 12 destinés à l'armée de l'Air française dans le cadre d'une commande à venir du gouvernement français afin de remplacer les appareils prélevés en faveur de la Grèce), garantit « un an et demi » de travail dans les usines de Dassault Aviation, et sollicitera « 7 000 personnes » dans ces usines, situées en France. M. Trappier est par ailleurs revenu sur l'importance d'un soutien sur le long terme des compétences et des technologies pour l'ensemble de la filière aéronautique et spatiale, et sur les enjeux de souveraineté qui y sont liés, rappelant le rôle du GIFAS à cet égard. Il a évoqué également le fonds français mis en place dans le cadre du plan de Relance, qui doit contribuer à garantir la sauvegarde de la supply chain et des pépites françaises. Le dirigeant a enfin souligné le caractère crucial de la prise en compte stratégique des enjeux liés à l'espace, pour la défense française et européenne. Europe1 Matin du 27 janvier

January 25, 2021 - Saab and the Swedish Defence Materiel Administration, (FMV), have signed two agreements concerning the next generation of surface ships and corvettes. A Product Definition Phase for the Mid-Life Upgrades (MLU) of five Visby-class corvettes, as well as a Product Definition Phase for the next generation; Visby Generation 2 corvettes. The collected value of the contracts is 190 MSEK. The contracts include requirements' analysis and are respectively the start of the modification work of the five corvettes and the acquisition of the Visby Generation 2. “The contract is a major step forward for Sweden's surface combat capability, with the upgrade of current corvettes and the creation of the next generation vessels. The Visby corvettes have been pioneers for 20 years, and after Mid-Life Upgrades they will be well equipped for future assignments. The experience and knowledge that the Visby class has gathered over the years will feed into the development of Visby Generation 2,” said Lars Tossman, Head of Business Area Kockums. The Visby Generation 2 is a development of Visby-class version 5 and will be equipped with a modern anti-ship missile system, torpedo system and air defence missile system. The first Visby-class corvette was launched on June 8, 2000 and today five corvettes are in operational service. The product definition phase regarding Mid-Life Upgrades, aims to make the five ships in the class operationally relevant beyond 2040. In addition to modifying the ships' existing systems, an air defence missile system will be added as a new capability. The RBS15 anti-ship missile system will be upgraded to the latest version as well as will the torpedo system with the new Saab Lightweight Torpedo. For further information, please contact: Saab Press Centre, +46 (0)734 180 018, presscentre@saabgroup.com www.saab.com Twitter: @Saab Saab serves the global market with world-leading products, services and solutions within military defence and civil security. Saab has operations and employees on all continents around the world. Through innovative, collaborative and pragmatic thinking, Saab develops, adopts and improves new technology to meet customers' changing needs. View source version on Saab: https://www.saab.com/newsroom/press-releases/2021/saab-signs-two-contracts-for-next-generation-corvettes-for-sweden