General Dynamics Delivers Improved Offer for Greek Main Battle Tank
Program creates 2,350 new jobs and $523 million of economic benefits
STERLING HEIGHTS, Mich. – General Dynamics delivered its improved offering for the Hellenic Army Main Battle Tank. The program would result in 2,350 new jobs and $523 million (191 billion GRD) of economic benefits to Greece. Co-production of the American M1A2 Abrams tank by the Hellenic Republic would have a direct economic benefit of $280 million (102 billion GRD) to the national economy and an indirect impact worth $243 million (88 billion GRD) according to a study by Foresight International, a United States company specializing in economic analysis of military and government procurements.
In addition to the economic impacts from co-production, General Dynamics' offset benefits significantly exceed the proposed value of the contract.
"The American M1A2 tank offering includes the export to Greece and co-production of some of the most sophisticated combat vehicle technology in the world," said Peter McVey, vice president International Business Development, General Dynamics Land Systems. "It provides work in a dozen state and private companies from Athens to Xanthi and an estimated government tax revenue of $140 million (51 billion GRD)." The December 1999 Foresight International study assessed the economic benefits for the Hellenic Republic from co-production of M1A2 tanks in Greece. It measured several economic impacts including direct and indirect income, direct and indirect employment and national government revenue. The study used extensive data from General Dynamics on potential Greek partners.
The General Dynamics' offering includes 246 main battle tanks, 24 armored recovery vehicles, 12 bridge launcher vehicles, and training simulators and spares for the Hellenic Army. The Abrams tank has an advanced gas turbine engine, tactical graphics and displays, a commander's independent thermal viewer, position navigation equipment, a 'new technology' armor package, advanced fire control with improved forward looking infrared sights, and embedded diagnostic system. The M1A2 Abrams tank is in production for the US Army with firm orders extending through 2004.
"The M1A2 Abrams is the most survivable main battle tank in the world. After extensive testing in Litochoro in 1999, the Hellenic Army General Staff recommended it. We are confident that the Abrams main battle tank would provide the Hellenic Army superb performance, as well as outstanding reliability and survivability," McVey said.
In the offering under review by the General Directorate of Armaments, General Dynamics' Greek partners will fabricate the vehicle hull and turrets, manufacture suspension components, co-produce the tank's electronics and electro-optics, and conduct final test and assembly of the vehicles prior to delivery to the Hellenic Army. The General Dynamics offer significantly exceeds the Hellenic government's mandatory requirements for 25 percent co-production content and 100 percent offsets for the tanks, recovery vehicles and bridge launchers.
General Dynamics' commercial partners include BMTE, Eon, Intracom, KYTE, Marac; METKA, Miltech, Sielman and Olympic Tools. Hellenic Aerospace Industry (HAI), Hellenic Arms Industry (EBO) and Hellenic Vehicle Industry (ELVO) will share in the production and assembly. Production of the tanks, armored recovery vehicles, and bridge launchers will take place between 2003 and 2008.
General Dynamics Land Systems is a wholly owned subsidiary of General Dynamics (NYSE: GD). General Dynamics, headquartered in Falls Church, Virginia, employs approximately 44,000 people worldwide and has annualized sales of approximately $10 billion. The company has leading market positions in business aviation, information systems, shipbuilding and marine systems, and land and amphibious combat systems.
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Any "forward-looking statements" contained in this press release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
General Dynamics Corporation (ticker: GD, exchange: NYSE)
News Release - Friday, January 19, 2001
Press Contact: (810) 825-7930
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