BAE Systems welcomes publication of Defence Industrial Strategy
15 Dec 2005
BAE Systems welcomes today the publication of the Defence Industrial Strategy for the United Kingdom. The Defence Industrial Strategy paper, published following consultation with industry, recognises the skills and capabilities that will be needed to equip and support the UK armed forces and ensure the defence industry remains a world-leading sector.
The Defence Industrial Strategy recognises the need for government and industry to work in partnership to secure the best technologies available, to meet the needs of the armed forces. It notes the strategic need for the UK to secure adequate control over any offshore technologies, to meet sovereign needs.
Mike Turner, BAE Systems Chief Executive Officer comments: We have been pleased by the level of engagement with UK defence industry during this exercise, led by the Defence Secretary, John Reid, and the Minister for Defence Procurement, Lord Drayson, and with the involvement of other government departments. We are very pleased to see that the Defence Industrial Strategy recognises the need to sustain, in the United Kingdom, the highest system integration skills and capabilities across air, land and sea domains. This is essential to deliver operational independence to the armed forces and to maintain the UKs world-class defence industry.
The key features for BAE Systems are:
* The creation of a much more open and transparent dialogue between the MoD and UK defence industry, enabling more effective planning of investment in people, skills, technologies and facilities
* An end to the boom and bust industrial cycle a key step in securing a healthy, profitable and innovative UK defence industrial base
* A recognition that through-life capability will depend on long-term partnerships and a variety of contracting mechanisms and it stresses the need for affordable and value-for-money solutions to meet the needs of the UK armed forces
The paper contains challenges for all of us both in industry and in government. BAE Systems stands ready to rise to those challenges in the interests of Team Defence, said Mike Turner.
MARITIME SECTOR
BAE Systems shares the view expressed in the Defence Industrial Strategy that there will be benefit from consolidation in this sector based the substantial forward core work load on complex surface ships, submarines and their support. The company recognises the challenge to deliver affordable platforms and support especially on submarines.
AIR SECTOR
BAE Systems and the MoD intend to work together to explore how a long-term partnership arrangement for the through-life availability of a significant proportion of the fixed-wing fleet might be delivered.
It was acknowledged that Unmanned Combat Air Vehicles (UCAVs) and Unmanned Air Vehicles (UAVs) will play a significant role in the future force mix and BAE Systems will work to secure an agreement in January with the UK MoD. The MoD intends to invest in a new technology demonstration programme in this key area and the company already has significant skills and experience in this domain. It successfully achieved the first fully autonomous mission of an unmanned aircraft in UK airspace, on 18 August 2005.
LAND SECTOR
BAE Systems already provides support for 95% of the existing British Army inventory. This relationship will strengthen following the signature today of an in-principle partnering arrangement between BAE Systems and the UK MoD to support existing and future armoured fighting vehicles. The two parties will work to ensure effective through-life management of the fleet and this critical level of support will provide equipment that gives our forces the edge and keeps them safe.
BAE Systems aspiration is to take the leading role in the FRES programme. The company is evolving its land systems business in partnership with the MoD, to ensure it is in the strongest possible position to achieve this.
About BAE SYSTEMS
BAE Systems is an international company engaged in the development, delivery, and support of advanced defence and aerospace systems in the air, on land, at sea, and in space. The Company designs, manufactures, and supports military aircraft, combat vehicles, surface ships, submarines, radar, avionics, communications, electronics, and guided weapon systems. It is a pioneer in technology with a heritage stretching back hundreds of years and is at the forefront of innovation, working to develop the next generation of intelligent defence systems. BAE Systems has major operations across five continents and customers in some 130 countries. The Company employs over 90,000 people and generates annual sales of approximately 14.8 billion through its wholly owned and joint-venture operations.
For further information, please contact:
John Neilson, BAE Systems
Tel: +44 (0) 1252 384795 Mob: +44 (0)7802 337704
john.neilson@baesystems.com
Richard Coltart
Tel: +44 (0) 1252 383074 Mob: +44 (0)7801 712042
richard.coltart@baesystems.com
Lisa Hillary-Tee, BAE Systems
Tel: +44 (0) 1252 384934 Mob: +44 (0)7801 718994
lisa.hillary-tee@baesystems.com
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