BAE Systems today signed a memorandum of understanding with Saab Australia to maximise Australian industry involvement in its bid for a major combat vehicle program.
BAE Systems is the prime contractor pursuing Defence program Land 400 Phase 2 Mounted Combat Reconnaissance Capability with Patria of Finland. Saab products are inherent in the vehicle design. Joining forces with Saab Australia will allow the BAE Systems-Patria team to substantially exceed the 200 Australian advanced manufacturing jobs and $100m in supply chain value already identified by the team for the manufacturing phase of the program. The vehicles will then be sustained in Australia for the next 30 years.
Graeme Bent, BAE Systems Australia’s Director – Land & Integrated Systems, said: “With Land 400, BAE Systems seeks to strengthen Australia’s advanced manufacturing capability and maximise Australian industry involvement within its supply chain. Our offer will replicate overseas success for manufacturing and sustaining the Patria Armoured Modular Vehicle (AMV), in Australia. The vehicle has been successfully manufactured in countries outside of Finland and has a strong track record for technology transfer to user nations”.
Under the proposed solution, BAE Systems and Patria will fully satisfy the Army’s requirements by bringing together combined strengths in the global armoured combat vehicle market. The two companies will transfer intellectual property and design artefacts for manufacture, sustainment and upgrades throughout the vehicle’s life of type. Saab will provide key sub-systems and in-service support and will further develop Australian capability in the combat vehicle market.
Dean Rosenfield, Saab Australia’s Managing Director, added: “Saab is delighted to draw on its global expertise and experience to provide key sub-systems into the BAE Systems-Patria solution for Land 400. Saab already has a significant presence in Australia and this collaboration will enable us to further grow our business in the Land domain. Land 400 provides additional opportunities for local manufacture, assembly, integration and in-service support that will not only assist us to achieve these aspirations but will be vital in growing local industry capability to effectively deliver and support combat vehicles for the ADF”.
The team will finalise its proposal for bid submission before providing additional information about the contribution of Australian industry.
Source: BAE Systems PLC (LSE: BAES.L)
Date: Jul 6, 2015