Thales Signs Submarine Partnering Arrangement

(March 24, 2009) -- Thales UK's naval business has today announced that it has signed a submarine Performance Partnering Arrangement (PPA) with BAE Systems. This arrangement provides a commitment between the companies to cooperate on future submarine programmes. The aim of both parties is that the PPA will significantly contribute to providing an affordable and sustainable common combat system across the UK's submarine flotilla. Under the PPA, Thales will be the preferred contractor for submarine sonar work in support of BAE Systems' submarine build and combat system design work. This will include providing sonar functional integration services for BAE Systems. Thales will also continue to be a key contributor to the combat system Design Evolution Team managed by BAE Systems on behalf of the UK Ministry of Defence. This commitment requires Thales to achieve a certain level of performance based on time, cost, quality and other factors. It is anticipated that continuing high-performance by Thales Underwater Systems business in the UK will lead to further new business success in the future. Ed Lowe, Managing Director of Thales UK's naval business, says: "This agreement is a very positive factor in the ongoing and close working with BAE Systems. It underpins the two companies' long-term relationship and is significant for Thales's underwater systems business in the global maritime defence market. "It highlights Thales position as a leading contractor to the submarine service. We look forward to supporting this key arrangement and delivering future successes together." Jon Sayer, Director Combat Systems & Support, BAE Systems, says: "The performance of UK sonar technology, and of Sonar 2076 in particular, is world-leading. BAE Systems are very pleased to enter into this agreement to sustain the supply of this capability into the submarines we design and build - today and in the future." Captain Pat O'Neill, Royal Navy, the Combat System Group Leader in the Submarines Cluster of the Defence Equipment & Support (DE&S) organisation, says: "This Partnering arrangement is very welcome. It recognises the ongoing contribution of Thales to the Royal Navy's submarine sonar programme, which is delivering world-class performance at sea". "It provides a framework for the overall UK Submarine 'Combat System Enterprise', including front-line forces, DE&S and industry, to benefit from ongoing relationships."

Source: Thales
Date: Mar 25, 2009