Apr. 10, 2013 - By ANDREW CHUTER – Defense News

RIO DE JANEIRO, Brazil — AEL-built avionics will be installed in the Brazilian version of the Gripen NG if the fast jet secures a deal to supply the Brazilian Air Force with a new fighter Saab, executives said Tuesday at the LAAD defense and security conference here.

Eddy de la Motta, the man leading Saab’s Gripen export drive, said AEL had been selected to supply displays, computers and other items in the event that the latest version of the Swedish fast jet wins the long-running FX-2 program.

The program to buy 36 fighters has been stalled by Brazilian economic developments, technology transfer and other issues.

The Gripen is in a three-way battle with Boeing’s F/A-18 E/F Super Hornet and Dassault Aviation’s Rafale for the deal.

La Motta said the inclusion of AEL avionics would create a separate standard of the under-development NG version of the aircraft already ordered by Sweden.

Switzerland has also selected the Gripen NG, but the purchase is subject to ratification by an upcoming referendum of voters there.

AEL is majority owned by Elbit of Israel. Embraer also has a 25 percent stake in a company, which has been heavily involved in providing avionics for recent Brazilian Air Force combat jet updates.

The Swedish executive took the opportunity during a briefing at LAAD to reiterate a financial offer on the FX-2 program that would allow the Brazilian government to not pay for the aircraft until the last machine had been delivered.

The payback period would run for 15 years after that, said the Saab executive.

In a separate development, Saab announced it had done a partnering deal with local Brazilian company Force Delta Equipamentos Militares for the part manufacture of multi-spectral camouflage for signature management.

credits defensemedianetwork.com

Apr. 8, 2013 - By PAUL MCLEARY  - Defense News

WASHINGTON — If the U.S. 2nd Battalion, 4th Brigade, 10th Mountain Division, deploys to Afghanistan this year to act as a security forces advise-and-assist team mentoring Afghan troops, they’ll likely introduce a weapon to the battlefield: the Boar Battle Wagon.

Two privates from the 2nd Battalion, 30th Infantry Regiment “Wild Boars” constructed the beast at Fort Polk, La., during their train-up for the mission this winter. It consists of a John Deere Gator ATV stacked with the Army’s newest and most anticipated communications equipment.

Lt. Col. Al Boyer, the commander of 2/30, said he was looking for a way to use the Capability Set 13 suite of radios, mission command and on a platform lighter than a mine-resistant, ambush-protected all-terrain vehicle, to have connectivity in places where the hulking armored vehicle is too big to go.

The two privates equipped the vehicle with satellite voice capability and a Force XXI Battle Command Brigade and Below system. It also has access to intelligence, surveillance and reconnaissance feeds. They loaded it on a CH-47 Chinook with a small generator to keep everything running and dropped it on top of a mountain, where Boyer was able to stay in contact with his soldiers.

In Afghanistan, “I need to be expeditionary,” Boyer said. “So essentially, we can drive this thing up on the back of a ’47, fly it up to some austere environment, pull it out, fire up the generator and, essentially, I had every single thing on the back of that vehicle that I could have in my [tactical operations center] in a hardwired structure.”

Boyer praised the CS13 package his soldiers used during their training rotation, saying it “will save people’s lives in Afghanistan, especially as we transition to retrograde and advising our Afghan partners. That situational awareness in those small teams is critical.”

At the training center, the unit created a BOLO list (short for “be on the lookout”) with the names and descriptions of suspects they were hunting. They blasted it through the CS13 system “so every single soldier out there on the battlefield had the BOLO list” available on the smartphone-like devices they were equipped with.

After that, “we started rolling up the network significantly.” The opposition force told him that “those checkpoints significantly impacted their operations” because soldiers could now spot any suspects that might be coming through, Boyer said.

“Capability Set 13 is a great out-of-contact system” he continued, adding that once a fight starts he wants his soldiers to be focused on the fight and not fiddling with their radios and smartphones.

“What it does out of contact is immediately following contact you can drop [virtual] chem lights and say ‘this is where the enemy is,’ or drop a request for help or you can take a picture and send it back, or you can locate personnel on the ground who are not in contact” for things such as casualty evacuation.

09 April 2013 defenceWeb

The partnership between Denel Dynamics and Abu Dhabi-based Tawazun Holdings looks set for greater heights following the successful execution of a difficult mission profile by the Al Tariq precision-guided munition.

It demonstrated superior accuracy against a laser designated target in a flight test evaluation. The test evaluated the weapon’s capability to dynamically determine its own flight path according to set launch and pre-programmed terminal phase conditions.

The missile was launched off-track of target and was instructed to fly into the target arena from a different direction during its terminal phase.

“This implies the missile had to perform a dog-leg manoeuvre and the flight path had to be calculated dynamically ‘on the fly’,” said Al Tariq programme manager Coenie Loock.

Despite the level of difficulty intentionally selected to give Al Tariq a thorough test, the weapon completed its mid-course guidance successfully and during terminal phase had a direct hit on the designated target with the miss distance at less than half a metre.

Al Tariq has a number of range options, from 40 km for the standard version to 100 km for the long-range version. The demonstrated accuracy is independent of the range variant. The weapon can also be pre-programmed to engage targets from specific directions and at different dive angles.

A model of the Al Tariq weapon is currently on show at the Tawazun Dynamics stand at the LAAD 2013 defence exhibition in Rio de Janeiro, Brazil.

“This is a great result for Denel Dynamics and reflects the success of the joint venture announcement last September with Abu Dhabi-based, Tawazun Holdings, for the development, manufacturing, assembly and integration of precision-guided weapon systems in Tawazun Dynamics, opening up an international gateway to potential new opportunities.

“Geographically, this is the first deal of its kind for Denel where the partnership is located outside South Africa creating an international footprint,” the South African company in the State-owned Denel group said in a statement.

crédits MinDefFR

April 9, 2013 defense-aerospace.com

(Source: Renault Trucks Defense; issued April 9, 2013)

Renault Trucks Defense at Sofins Special Forces Show

Improvements of SAS Patrol Vehicles

VERSAILLES --- Further to the Special Operations Command and the French Procurement joint collaboration, Panhard will soon deliver kits to enhance the operational capabilities of VPS (vehicle patrols SAS).

These kits include:

-- Milan support - they can carry a missile launcher and several missiles, but also fire from the vehicle

-- Ballistic shields to improve protection of the 12.7 mm gunner

-- Camouflage screens Lacroix (Galix 13) to allow the vehicle to evade the opponent's views.

As a reminder, 51 VPS have been ordered by the DGA and delivered to the SOC troops in 2008.

New Version of the ALTV Torpedo ACMAT

On the occasion of the SOFINS show, Renault Trucks Defense presents a version of the ALTV Torpedo ACMAT. It will be exhibited during the dynamic show.

This new version receives a higher ground clearance (from 0.3 to 0.35m) and a wider approach angle (from 25° to 40°) in order to improve the land mobility.

In parallel to these new performances, the ALTV keeps its essential characteristics that made its international success in 2012. More than 60 ALTV (Torpedo models) were indeed sold last year. The ALTV is, thanks to its robustness and its large payload (1.4t), adapted to the needs of the Special Forces.

With a 190hp, the vehicle can reach speeds of 170km/h while its 1,600 km autonomy allows it to operate in isolated areas without logistic support. It can carry 3 ( 4 in option) men.

The ALTV is capable of operating on slopes up to 80%, side-slopes up to 100% and cross a ford of 0.5m. Finally, it is also able to support mine and ballistic protection kits, and is fitted for a manned operated machinegun on the roof (7.62/12.7/LG40mm/M134).

“Battlenet Inside” at the Heart of Renault Trucks Defense Vehicles

To meet the requirements of armed forces for modularity, growth potential and cost control, Renault Trucks Defense launched at Eurosatory 2012 an innovative vetronic solution called “Battlenet Inside”. All systems are now presented embedded on the Sherpa Scout at Sofins 2013.

The range of operations that modern military vehicles have to conduct is giving rise to increasing complexity: a wide variety of missions, multiple threats, interoperability with other armed forces, tactical situations that are often highly complex, and so on. Renault Trucks Defense intends to meet these new operational requirements by optimising the integration of more and more items of equipment into its combat vehicles, Sherpa Scout included. It is ideally suited for tactical missions such as scouting, patrol, convoy escort, command and liaison and is able to transport up to 4 or 5 soldiers. Connected on the vetronic network Battlefield, the Scout becomes a complete mission system whose operational effectiveness can be optimized and adapted for each type of operation.

The different elements on this Sherpa Scout are:

-- a light turret WASP that is remotely-controlled from inside the vehicle. It can be fitted with a MAG 58 7,62mm machine gun coupled to a day/infrared sight and observation scope for day or night observation (Panhard and Sagem Defense Systems Sécurité),

-- a portable, light and easy to use UAV called “SPYARROW” (Thales),

-- a reverse camera (Motec),

-- a long-distance secured VH/VHF communication system “HF3000” (Thales),

-- a night vision goggle with video display, ultra-compact and lightweight goggle (Thales),

-- a distant vehicle management called “e-soutien” to maximize materials support in operational condition (RTD).

All systems presented on this Sherpa Scout are connected on our vetronic network Battlenet Inside:

-- Video streams shared on vehicle displays

-- Head-up display of Commander’s monitor on Minie D Night Vision Goggles

-- Vehicle integrated ergonomic HMI for systems

-- Ability to receive drones video

-- Distant vehicle management with “e-soutien” application

Battlenet Inside is an innovative electronic architecture designed by Renault Trucks Defense. It is based on open, standardized and proven COTS solutions coming from IP technologies.

As an integrator, Renault Trucks Defence guarantees interfacing with mission kits, the interoperability of these kits, their ergonomics, and the new collaborative functionalities, while respecting the know-how of the suppliers concerned.

Renault Trucks Defense has decided to propose an open architecture capable of ensuring the interoperability of these items of equipment. At the same time, as this equipment is constantly changing, there is a need to be able to upgrade the complete system, without modifying its basic architecture, by selecting long-standing, open standards. Renault Trucks Defence ensures the modularity and growth potential of the systems integrated on its vehicles while significantly reducing life cycle costs.

Networking the mobility platform with these items of equipment allows new collaborative functions to be provided while enhancing the overall effectiveness of the mission system in operations, training and maintenance.

This “Battlenet Inside” is based on an Ethernet network and on all existing protocols for carrying images, video or voice. Video streams shared on vehicle displays, drones video reception as well as the “e-soutien” application, make the vehicle a mechanical, electrical, electronic and MMI host structure onto which mission kits can be integrated as modules:

-- Drone Spy Arrow

-- Remote Control Weapon Station WASP

-- Night Vision Goggle with Video Display

-- Reverse camera

-- E-Soutien

-- HF/VHF Communications

Renault Trucks Defense, a reference manufacturer for the terrestrial armed forces, designs and develops a full range of armoured vehicles, with the SHERPA. Legacy supplier to the French Army, with more than 4,000 VAB armoured personnel carriers in service, Renault Trucks Defense can claim more than 65 customer countries across the world. Armoured vehicles represent more than 60% of its activity, but it also has a truck offering geared to a very full range of military uses. Renault Trucks Defense participates in programmes with Nexter, such as the CAESAR artillery system and the VBCI infantry fighting armoured vehicle. It holds several brand names across the world, including ACMAT and Panhard.

08.04.2013 maliactu.net

Les responsables maliens sont « tétanisés » par la perspective du retrait des forces françaises, qui devrait débuter fin avril, a déclaré lundi Arnaud Danjean, le président français de la sous-commission Défense du Parlement Européen, au retour d’une mission à Bamako.

« L’annonce du retrait français est vécue très difficilement au Mali. Elle provoque beaucoup de craintes chez les partenaires africains et chez les Maliens, qui semblent tétanisés par cette perspective », a souligné M. Danjean devant la presse à Bruxelles.

L’eurodéputé UMP a indiqué comprendre « le message sur le retrait » du président François Hollande, qui a annoncé que les opérations de rapatriement des 4.000 soldats débuteraient fin avril. Mais, a-t-il ajouté, « l’articulation entre les calendriers militaire et politique va être problématique », car « il y a de sérieux doutes sur la faisabilité » d’organiser les élections en juillet, comme s’y sont engagés les autorités maliennes.

A l’issue d’une mission d’une semaine, M. Danjean s’est déclaré « très frappé par l’état de déliquescence de l’Etat malien », dont les responsables « ne semblent pas prendre la mesure de leur tache ».

De plus, ces élites restent « tétanisées » face au capitaine Amadou Haya Sanogo, qui avait renversé en mars 2012 le président Amadou Toumani Touré. « Son degré de nuisance reste considérable » malgré la volonté de tous de « le marginaliser », souligne l’eurodéputé, en prévenant que Sanogo pourrait « être tenté de capitaliser sur le retrait français ».

M. Danjean a par ailleurs été impressionné par « le travail absolument remarquable des forces françaises » engagées au Mali, qui ont réussi à « casser la colonne vertébrale d’Aqmi », l’un des mouvements jihadistes actifs dans le nord Mali. « La menace n’est cependant pas éteinte », selon lui.

Il a également estimé que la mission de formation l’armée malienne lancée début avril par l’Union européenne « a rapidement trouvé ses marques » mais qu’elle devra probablement être prolongée au delà de son mandat initial, fixé à la mi-2014.

April 8, 2013 defense-aerospace.com

(Source: Lexington Institute; issued April 5, 2013)

It takes a crisis to concentrate the mind. Faced with unusually bellicose rhetoric from the regime in Pyongyang, the Obama Administration reversed course on National Missile Defense (NMD) and is rapidly bolstering its theater air and missile defenses in the region. The Department of Defense will add 14 ground based interceptor missiles to 30 currently in place at Fort Greeley, Alaska. Two Aegis missile defense capable destroyers have been sent to waters off the Korean peninsula.

Equipped with the Standard Missile 3 IA, these ships can provide defense against short to medium range ballistic missiles as well as advanced cueing for the NMD system. In addition, the Army is deploying a THAAD battery to Guam, an obvious potential target for a North Korean missile. In addition, the U.S. has deployed B-2 bombers and F-22 fighters to South Korea as shows of force.

Without appearing bellicose, there are additional capabilities that the U.S. could and should send to the region that would provide important intelligence collection and defensive capabilities. One of these is the Joint Land Attack Cruise Missile Defense Elevated Netted Sensor System (JLENS). This is a long-range surveillance system based on two large aerostats that carry radars, one for surveillance and the second to provide very precise intercept data. The aerostats can stay airborne for weeks at a time. Because it operates at a relatively high altitude and carries long-range sensors, JLENS can look out to about 550 km and track hundreds of targets at one time. We are not just talking about ballistic missiles or aircraft.

JLENS can track low flying cruise missiles, small boats and even ground vehicles all at the same time. In recent tests, JLENS demonstrated its ability to detect and track simultaneously-launched multiple ballistic missiles during their boost phase and also accurately locate their launch points. This last capability may be particularly important in finding North Korean mobile missile launchers. As a joint program, JLENS was designed from the start to support the missile and air defense operations of all the services. It carries a full array of communications capabilities allowing it to feed data to Army, Navy and Air Force units and platforms.

The on again/off again threat from North Korea is not the only danger U.S. and allied forces in the region face. On February 26, a Russian TU-22M Backfire bomber conducted a simulated cruise missile attack on a U.S. destroyer. The next day another practice attack was conducted against a missile defense site on Japanese soil. This is but one of dozens of such “exercises” in which Russian bombers simulate attacks on targets in Japan, NATO and even the continental U.S., on occasion penetrating into national airspace and having to be escorted out by armed fighters. It is beginning to look a lot like the bad old days of the Cold War.

Then there is the growing Chinese air and offensive missile threat. This includes hundreds of dual capable medium and intermediate range and ballistic and cruise missiles as well as the new DF-21 anti-ship ballistic missile intended to attack U.S. aircraft carriers. In addition, the PLA Air Force has deployed or has on order around 500 modern fourth-generation fighters and at least two fifth-generation fighters (approximately the equivalent of the F-22 and F-35) under development.

It is ironic that the Army is searching so intensely for a role in an Asian-centric U.S. national security strategy. As demonstrated by the decision to accelerate the planned deployment of a THAAD battery to Guam, the Army could have a major role in regional air and missile defense. Deploying JLENS to Guam would be a good first step and purely defensive. If deployed on the Korean Peninsula, JLENS could provide real-time warning and targeting information on the whole array of North Korean offensive threats from small boats to shorter-range ballistic missiles and very early cueing for the U.S. NMD. Also, JLENs is rapidly deployable and very mobile, which should be highly prized by an Army increasingly concerned about executing strategic maneuvers. The Army needs to invest in JLENS as part of a suite of advanced air and missile defense capabilities.

08/04/2013 Par LEXPRESS.fr (AFP)

L'opération, baptisée Gustav, a été entamée dimanche à l'aube et se poursuit ce lundi au nord de la ville de Gao.

La traque se poursuit, et les troupes françaises ne relâchent pas leur effort. Une vaste opération de l'armée française pour dénicher les islamistes, entamée dimanche à l'aube au Mali, est en cours ce lundi. Elle devrait se poursuivre plusieurs jours dans un oued asséché au nord de la ville de Gao, selon un journaliste de l'AFP qui l'accompagne. 

Cette opération baptisée "Gustav", l'une des plus importantes en termes d'effectifs engagés depuis le début du conflit au Mali en janvier, mobilise un millier d'hommes, plusieurs dizaines de blindés, des hélicoptères, de l'artillerie, des drones et de l'aviation, a précisé à la presse le général Bernard Barrera, commandant de la composante terrestre de la force Serval. 

Gao, plus grande ville du nord du Mali, située à 1 200 kilomètres de Bamako, était un fief du Mouvement pour l'unicité et le jihad en Afrique de l'Ouest (Mujao), l'un des groupes islamistes armés qui ont occupé le nord du pays l'an dernier avec Al-Qaïda au Maghreb islamique jusqu'à ce que l'opération militaire franco-africaine les en déloge en grande partie. La ville a cependant subi en février des attentats-suicides - les premiers de l'histoire du Mali - et a été le théâtre de violents accrochages entre les forces franco-maliennes et les jihadistes, dont le dernier en date il y a deux semaines a fait sept morts. 

Quelque 4 000 soldats français sont actuellement engagés au Mali pour lutter contre les groupes islamistes armés. Mais à compter de fin avril, ils vont entamer leur retrait jusqu'à la fin de l'année. Il n'y en aura alors plus qu'un millier, selon Paris. 

05/04/2013 Michel Cabirol – LaTribune.fr

La Corée du Nord s'est déclarée vendredi incapable de garantir la sécurité des ambassades à partir du 10 avril en cas de conflit et a proposé à la Russie, à la Grande-Bretagne et à d'autres pays présents dans le pays d'"envisager" l'évacuation de leurs ambassades. Mais Pyongyang a-t-elle les moyens militaires des menaces qu'elle profère?

Que valent les menaces venues d'un pays aussi secret et provocateur que la Corée du Nord ? Elles sont à prendre au sérieux, très au sérieux, à l'instar des Etats-Unis qui déploient actuellement toute une panoplie de missiles antimissiles pour protéger ses "boys" stationnés en Corée du sud, au Japon, à Guam ainsi que Hawaï. Car l'arsenal balistique nord-coréen, même rustique, est loin d'être inoffensif. Et ce d'autant que le régime nord-coréen, qui consacrerait plus de 30 % de ses ressources à sa défense, a bénéficié d'importants transferts technologiques ces dernières années.

"Le transfert technologique de systèmes à propulsion liquide plus avancés que les Scud semble avoir permis à la Corée du Nord de faire évoluer certains de ses programmes", estimait ainsi en 2010 Stéphane Delory, chargé de recherche à la Fondation pour la recherche stratégique (FRS). Ainsi, l'acquisition (supposée) de SS-N-64 et de ses propulseurs auprès d'industriels russes permettrait à Pyongyang de disposer de systèmes moyenne portée plus évolués (No Dong-B ou Musadan) et pourrait l'aider à accroître la portée et la puissance de ses vecteurs moyenne/longue portée de manière significative".

Des technologies russes, chinoises et pakistanaises

Grâce à des technologies chinoises et russes essentiellement, mais aussi pakistanaises, Pyongyang est donc parvenu au fil du temps à développer toute une série de vecteurs opérationnels de type No Dong 1 et 2 à propulsion liquide - un Scud agrandi, selon les experts -, qui ont respectivement une portée de 1.300 kilomètres et de 1.500 kilomètres, ainsi qu'une nouvelle génération, le Musadan (propulsion liquide), qui aurait une portée de 3.200 kilomètres. Auparavant, les Nord-Coréens avaient également développé trois versions du missile Scud (B/C/D) ou Hwasong, ayant une portée de 300, 500 et 700 kilomètres.

Enfin, Pyongyang a complété son arsenal en développant une gamme de missiles de moyenne portée Taepo Dong 1 (2.000 à 2.500 kilomètres) sur des pas de tirs fixes et probablement un système de nouvelle génération, le Taepo Dong 2 (3.200 à 3.850 kilomètres de portée). Cette version disposerait d'une propulsion solide. D'ailleurs, la Corée du Nord a transporté un deuxième missile Musadan de moyenne portée sur sa côte orientale et l'a hissé sur un lance-missiles mobile, selon l'agence sud-coréenne Yonhap, alimentant les craintes d'un tir imminent qui aggraverait une situation déjà explosive. "Il a été confirmé que la Corée du Nord a transporté par train, en début de semaine, deux missiles Musudan de moyenne portée, vers la côte est et les a installés sur des véhicules équipés d'un dispositif de lancement", a déclaré un haut responsable du gouvernement à Séoul cité vendredi par l'agence.

"Selon les données disponibles, l'Armée Populaire de Corée possède une trentaine de lanceurs et plusieurs centaines de missiles balistiques de type SCUD-B, SCUD-C et No Dong, organisés au sein de 1 à 2 régiments déployés à proximité de la frontière", estimaient en 2011 Valérie Niquet et Bruno Gruselle, maîtres de recherche à la FRS dans une étude "Défense antimissile au Japon, en Corée du Sud et en Inde". Mais, Pyongyang ne devrait détenir que quelques exemplaires des engins de plus longue portée déployés au nord-est du pays dans des configurations fixes.

Deux lancements en une journée

A l'horizon 2015, la Corée du Nord pourrait disposer de deux régiments de missiles de type No Dong, c'est-à-dire d'une dizaine de lanceurs mobiles et de quelques centaines de missiles. Pour autant, "vu les temps de rechargement et de préparation imposés par le système No Dong, et en présumant que ses lanceurs mobiles subissent un taux d'attrition nul, on peut supposer que la Corée du Nord serait tout au plus capable de procéder à deux lancements pendant une journée et à une vingtaine de lancements avant d'épuiser son stock de missiles", nuançaient-ils.

Plus d'un millier de missiles balistiques

En dépit de systèmes peu performants, un tel arsenal - plus d'un millier de missiles balistiques - suscite des inquiétudes légitimes dans la région, notamment en Corée du Sud et au Japon, soucieux de dimensionner leur capacité antimissile avec l'aide des Etats-Unis, selon la nature et la taille de l'arsenal nord-coréen. Par exemple, avec deux destroyers en permanence à la mer, et la possibilité d'en déployer un troisième le cas échéant, "Tokyo doit être capable d'engager simultanément une salve de No Dong (10-15 missiles selon le nombre de lanceurs) à condition de disposer en temps quasi-réel des données d'alerte" estimaient Valérie Niquet et Bruno Gruselle. Et de souligner que "dans un tel scénario, les capacités navales (au moins 400 intercepteurs SM-3) et terrestres (le même nombre d'intercepteurs PAC-3) japonaises sont a priori suffisantes pour permettre d'utiliser des stratégies d'engagement multiples.

La présence de moyens américains supplémentaires - notamment des croiseurs de type AEGIS - renforcerait la couverture antimissile du pays et sa capacité à répondre dans la durée à des tirs nord-coréens visant le territoire ou les forces américaines. Il convient toutefois de souligner que les engins balistiques ciblant des zones non protégées par les moyens terrestres ne seraient engagés que par les capacités navales japonaises".

Le ministère de la Défense sud-coréen considère pour sa part que les capacités balistiques nord-coréennes s'insèrent de façon générale dans l'arsenal de moyens asymétriques que les forces de Pyongyang utiliseraient dans une stratégie de blitzkrieg pour conquérir rapidement Séoul et ses environs dans le cadre d'une attaque surprise. Dans le cas d'un tel conflit au sein de la péninsule, "Pyongyang pourrait choisir de tirer simultanément quelques dizaines de missiles sur Séoul ainsi que sur la zone aéroportuaire d'Incheon et les bases américaines du nord du pays. De telles frappes pourraient être accompagnées d'un barrage d'artillerie et par un bombardement aérien destiné à créer un effet de panique à Séoul et dans ses environs, qui regroupent plus de 25 % de la population du pays", soulignaient Valérie Niquet et Bruno Gruselle.

Une bombe atomique ?

Outre les capacités balistiques, la menace des armes de destruction massive (de 2.500 à 5.000 tonnes d'armes chimiques) doit être également prise en compte ainsi que bien entendu le renforcement des capacités en matière nucléaire. La Corée du Nord tenterait de maîtriser la technologie nucléaire sur ses missiles balistiques. D'où sa volonté de procéder à tout prix en février dernier d'un troisième essai nucléaire avec un engin miniaturisé. Un essai réussi, selon Pyongyang. En outre, la Corée du Nord détiendrait de nouvelles capacités en matière de retraitement de l'uranium qui lui permettraient de produire aujourd'hui 40 kg d'uranium hautement enrichi. En 2011, elle disposait également d'une réserve de 28 à 49 kg de plutonium quatre fois supérieure à celle dont elle avait en 2003

Enfin, le tir en décembre dernier de la fusée Unha-3, qui a mis sur orbite un satellite civil - une mission purement scientifique, selon Pyongyang - équivaut à un essai de missile balistique doté d'une charge d'une demi-tonne et d'une portée de quelque 10.000 km, avait affirmé alors l'armée sud-coréenne. "Sur la base de nos analyses et d'un processus de simulation, le missile est capable de voler plus de 10.000 km, avec une charge comprise entre 500 et 600 kg", avait précisé un porte-parole du ministère de la Défense. Le réservoir était fixé sur le premier étage de la fusée. En l'absence de débris des 2e et 3e étages d'Unha-3, les scientifiques sud-coréens n'ont pas pu déterminer si la fusée était capable de réentrer dans l'atmosphère, un élément clé de la technologie des missiles balistiques intercontinentaux. Mais pour les Etats-Unis, le lancement de la fusée nord-coréenne est un nouvel essai de missile balistique à longue portée.

Apr. 3, 2013 - By AARON MEHTA  - Defense News

In 2006, Embraer Defense & Security, Brazil’s largest defense company, earned $227 million in revenue. In 2012, it cleared $1 billion in revenue for the first time. That economic growth has mirrored the company’s emergence on the world stage, a presence the company is confident it can increase even as nations around the world cut defense spending.

With the U.S. Air Force selecting Embraer’s Super Tucano as the light air support (LAS) contract winner to supply Afghanistan with new turboprop combat planes, the company now has a foothold in America and eyes on worldwide expansion with its KC-390 transport plane. Defense News talked to company CEO Luiz Carlos Aguiar on March 14 as part of a company-sponsored trip to Brazil.

Q. You’ve talked about seeking out niche markets. How does the company target these and capitalize on them?

A. We have great experience doing that, not just on defense. On defense, we have a couple of examples, such as the [LAS contract]. When the Brazilian Air Force and Embraer designed these airplanes, it was designed for the Brazilian mission. Later, we found we had discovered a niche product for countries like Brazil that had challenges on their borders, trying to control the narco-traffic, drugs, arms and other things like that. The Philippines, Indonesia, even Central America, there is a great challenge to control the drugs there. The Brazilian Air Force had introduced a new aircraft, and later other air forces decided it was the right one to combat these kind of problems we have all over the world.

Another case is the patrol and surveillance aircraft based on the ERJ-145 [a civilian regional jet]. It’s a very cost-effective airplane. It is now being utilized by Mexico, by Greece, by India and others. It was again based on the Brazilian budget constraints.

Other countries have a lot of cuts and they need to have a surveillance system. For their missions, they don’t need to buy a larger airplane — they need something smaller. Once again, we found our niche for that.

Q. How is the KC-390 transport plane different from past products?

A. When we thought about this airplane, it was the first time we looked at the international market also, not just the Brazilian requirements. We balanced both needs. We saw the market first. We saw there were 2,000 old airplanes all over the world in more than 70 countries, very well spread out with a diversified base of potential customers. We looked at that and saw there was only one aircraft available in the market being produced and being delivered [the C-130].

We looked at the market and then came back to the Brazilian Air Force to talk with them about what they think about their cargo airplanes for the future. They said they were probably going to replace with more C-130s, and we started talking and showed them we were able to develop something in a very feasible way. It took two years working together to launch and sign the contract. It was a much more sophisticated process. We are on schedule, and I think we have a great chance to sell abroad.

Q. What other products do you have an eye on exporting?

A. When you look at the land side of it, we have the C4I capabilities with the company we just bought, Atech. We need to invest more money on that, we need to have more contracts to develop the technology, but there are capabilities already in place.

The radar company, Orbisat, once again has a chance in Brazil to produce and deliver [for Embraer’s border security system] Sisfron, and then we’ll have an economy of scale and a great chance to mature this product and export it also. We are focused on C4I, radars. And our bet is intelligence and communications.

Q. You’ve said you view the LAS contract as establishing the company in the American market. How do you expand?

A. We need to consolidate first and execute this program. We have a new company there, which is Embraer Defense & Security, incorporated in the U.S. We need to find someone who will manage it, a local, American executive to run this business for us. And then we’re going to write down a new business plan for America that, in my opinion, must include certain types of acquisitions. We need to think a little more about it.

First thing is getting there, executing this program [LAS], getting closer to increase our credibility with the end user. We are certain in this. But we want to take this opportunity to get to know our end user. We’re going to find and study the market.

Our main objective is two pillars: mobility and surveillance. These two operational capabilities are what we are focused on. Any type of acquisition, any type of project, will be under these two pillars.

We don’t want to go into armaments or other areas. Why? Because despite all of the budget constraints, these two areas need capabilities. Even in these specific areas, the budget in Europe or the U.S. might grow despite the fact the entire [defense] budget is shrinking.

Q. Are you worried about Beechcraft’s challenge to the LAS contract award?

A. No. The process was so robust. Senior people took control of the process. They have internal and external advisers. I think they did the right thing, they did it by the book, and they will prove that. It’s going to take some time, but I think this time we’re going to get there. We are ready to go right away in order to deliver on time, but we need to be patient and wait a little bit more, unfortunately.

Q. Could the Beechcraft challenge impact the timing of the contract?

A. I hope not. At this stage, it is very difficult to say something. [The U.S. Air Force] needs to [act] carefully so it does not open any gap in the process. That’s the way it is.

Unfortunately, our competitors are going downhill. They discontinued a lot of products that in the past were the champions of the market, and they tried to keep this as if it was their survival. They keep saying that they have the lower price. But mission capabilities, past performance and price, there are three variables and the [request for proposal] is quite clear on that. [USAF] took all of the information, put it inside their model, and then said who is the winner. That’s the way it is.

Q. Is Brazil’s long-delayed F-X fighter jet program coming soon, and what role will Embraer have?

A. I think Brazil is going to make this decision. It is time to make this decision. They have everything in place. All of the contenders have offered their offset programs. It’s more than mature enough to go ahead, in my opinion. I think it’s going to be in the next months, this year, I would say. Our role in that depends — I cannot tell any details — depends on who is going to win.

We have a memorandum of understanding with all three of the contenders. Each of them offers an offset program, but we prefer not declaring publicly our preference because we don’t want it to jeopardize the choice. It is a governmental decision, and we will respect that. Whatever they choose, we’re going to be in the process. They need to make this decision because Brazil needs that.

And it will have huge benefits for industry as well. There are new technologies, products and developments. There are opportunities for Embraer to leverage our current technology through the F-X. With the F-X, we can even go further in terms of technology, and even some new products could come up with one of these three contenders. That’s what I can tell you, I can’t go further than that.

Q. Did the decision to recompete the LAS competition hurt the chances of a U.S. company winning the F-X program?

A. There is no formal relation between the two programs. Formally. But goodwill is important. I couldn’t say that the [F/A-18 Super Hornet] is not going to be selected, but for sure, the way that [the initial LAS contract] happened in the United States — choosing a Brazilian aircraft, then canceling the contract, the way it happened — it caused some kind of bad blood, right? It’s a normal, human perception.

Q. But you don’t think there was long-term damage to the relationship between the two countries?

A. No, I don’t think so. Now, it is different. There are some steps that any competitor in the United States has the right to do. It doesn’t mean the [USAF] is canceling the contract; they are trying to keep our victory. One year ago, they looked at the process, saw some gaps, made a mistake and they canceled the contract. Now it’s different. They are trying to defend their choice. So far, so good. No problem at all with the relationship. It’s a part of the game there. That’s the way it is, there are rules and laws.

Q. What is next for Embraer?

A. We’re going to have a lot of new projects. And they are big. We’re talking about $20-25 billion in the next 10 years. If you look back, it started in 2008, when we had the new national defense strategy. After that, you had the mobility project with KC-390, the submarine project with the French company DCNS, the Sisfron.

In any society, you want to develop technology and protect yourself, because there are threats you didn’t have before. There are more things happening in Brazil right now, and we need to protect ourselves. There are high-level, added-value products we can develop and export. That’s our objective. We don’t see the maximum market as just selling in Brazil and continuing the process later. We try to focus where we can add value, build up a capability, and sell abroad. That’s the way it is.

COMPANY PROFILE

• 2012 revenue: $1.06 billion

• 2012 backlog: $3.4 billion

• Key businesses: Aerospace, border security, ISR and integrated solutions.

• Key markets: Latin America, Africa, Asia-Pacific

Source: Defense News research

———

Mehta reported from San Jose Dos Campos, Brazil.

Le Gripen suédois n’a été autorisé à participer qu’à des opérations de renseignement en

Libye. ©Forces armées suédoises / Lasse Jansson

03 avril 2013 par: Romain Mielcarek - ActuDéfense

La Libye a été la première opération aérienne de l’armée de l’air suédoise depuis le Congo en 1961. Cette mission a aussi été le baptême du feu du Gripen. Retour sur l’engagement du chasseur polyvalent de Saab.

Chauvinisme oblige, nous nous sommes beaucoup, en France, intéressés aux résultats du Rafale ou du Mirage en Libye. Ce théâtre d’opération a pourtant été le lieu d’une étrange rencontre entre trois chasseurs de dernière génération, concurrents sur quelques uns des principaux marchés des années à venir : le Rafale, l’Eurofighter et le Gripen. C’est sur le cas de ce dernier que nous allons nous pencher.

Le JAS 39 Gripen, en Libye, ce sont quelques 2000 heures de vol réalisées par huit appareils. Les Suédois ont participé en tout à 650 sorties au cours desquelles les pilotes se sont concentrés sur un effort de renseignement, réalisant près de 150 000 clichés. 140 militaires ont été mobilisés sur la base de Sigonella, en Sicile, directement aux côtés des Américains. L’engagement suédois a commencé le 8 avril et s’est terminé le 24 octobre 2011.

L’armée de l’air suédoise déployait pour la première fois depuis près de 50 ans des avions de combat sur un théâtre opérationnel. Elle ne l’avait pas fait depuis son intervention au Congo belge en 1961. La réactivité a été d’autant plus remarquable que les premiers équipages ont commencé à travailler moins d’une semaine après le vote favorable du Parlement, début avril 2011.

Pour le lieutenant-colonel Stefan Wilson, qui commande les forces aériennes, le bilan opérationnel est positif. Il insiste notamment sur la capacité des suédois à travailler au sein d’une coalition internationale, sous commandement de l’OTAN. En effet, si la Suède n’est pas membre de l’Alliance, elle est régulièrement amenée à travailler avec les armées de l’air de celle-ci. En Libye, c’est plus directement avec les Américains et les Danois qu’elle a collaboré. L’officier s’estime ainsi satisfait de l’usage fait des liaisons OTAN L16, sur lesquelles les Français ont eu quelques soucis, ainsi que de l’intégration dans la chaîne de commandement.

Panne d’essence

Le Gripen suédois vole avec une catégorie de carburant civil qui demande quelques ajustements par rapport

au carburant militaire utilisé par les Américains. ©Saab Group

Tout n’a cependant pas été parfait. Les Suédois ont notamment souffert de leur incapacité à assurer leur propre soutien essence. Ils ont du pour cela compter sur les capacités de l’US Air Force … qui n’utilise pas le même combustible. Le temps d’ajouter les additifs nécessaires au gazole américain, les Suédois ont perdu quelques jours.

On pourrait aussi regretter de ne pas en avoir découvert plus sur les capacités du Gripen dans des missions de combat. L’avion suédois, dont le mandat parlementaire ne permettait que de faire de la reconnaissance, participait ici à sa première opération. Alors qu’il est sensé concurrencer, comme appareil multirôles, des engins comme le Rafale ou l’Eurofighter, il n’aura pas pu démontrer toutes ses possibilités.

Reste à observer les nombreux exercices aériens multinationaux auxquels participe l’avion de Saab. Les amateurs pourront regarder du côté du colossal Red Flag, organisé aux Etats-Unis, ou des plus modestes Loyal Arrow en Suède et Joint Warrior en Grande-Bretagne. Le tout en attendant l’intégration de la bombe à guidage laser GBU 39 et du missile Meteor … d’ici quelques années !

Apr. 2, 2013 by Stephen Trimble – FG

Washington DC - Two years can seem like a long time in the revitalised Brazilian defence market. While the lengthy delay to the air force's FX-2 fighter contract award receives most of the attention, the Brazilian military and the national defence industry have moved forward aggressively in key areas, revealing a new appreciation for taking national and regional security obligations more seriously.

 

Brazilian air force The Hermes 450 is being adapted for local requirements

Perhaps the most telling example of this trend is the rapidly diversifying portfolio of Embraer Defense Systems. In 2012 alone, Embraer won a landmark border surveillance contract from the Brazilian army, formed a joint venture to manage satellite construction projects, publicly began contemplating a surprise entry into the shipbuilding industry, and - not least - posted a 24% increase in annual revenues, topping $1 billion in defence and security sales for the first time in the company's history.

The wide scope of those interests point in the direction of Embraer's evolution into Brazil's main prime contractor for a rapidly growing set of defence and security needs. It is a strategy likely to reshape the company's portfolio of products in the defence sector in less than a decade.

 

HEALTHY POTENTIAL

 

At the beginning of 2012, Embraer expected 75% of its defence revenues to come from four major programmes: development of the KC-390 transport and tanker; modernisation of AMX/A-1 and Douglas A-4 combat aircraft for the Brazilian air force and navy; the A-29/EMB-314 Super Tucano; and EMB-145-based P-99 and R-99 surveillance and command and control aircraft. It was a list with a healthy potential backlog and well within Embraer's comfort zone as an aircraft manufacturer.

 

By 2020, Embraer expects the fighter modernisation programmes and the P-99 and R-99 production lines to be gone, with the KC-390 and light attack aircraft to account for 43% of the defence company's overall revenues.

Meanwhile, revenues generated by several new business product lines, featuring Embraer as a border surveillance integrator, satellite construction manager, unmanned aerial vehicle maker and possibly even a shipbuilder, will contribute 42% of sales by the same point, according to its projections.

To be fair, Embraer had dabbled in the systems integration business in the past. It created an air operations centre for Mexico, which connected to the nation's EMB-145-based airborne early warning and control system aircraft. It had also participated in the creation of the Brazilian air force's system for the surveillance of the Amazon (SIVAM), but as a subcontractor to Raytheon.

 

There were no system integrators in Brazil when the SIVAM programme was awarded in the mid-1990s, as the country was in the midst of a near two-decade reduction in defence spending.

National priorities have shifted in the past decade, however, as Brazil has embraced a larger role on the regional and world stages and discovered a new wealth of oil and natural gas deposits within its maritime borders in the South Atlantic.

 

NEW LAW AIMED AT SOURCING WITHIN BORDERS  Foreign defence companies have been doing well in Brazil. With rising security needs and a small defence industrial base, the nation has been forced to go beyond its borders to buy military hardware. That is why Brazil's new submarines come from France, its newest ocean patrol vessels come from the UK and its new fighter will be acquired from France, Sweden or the USA; the latter in a competition between the Rafale, Gripen E and Lockheed Marting F/A-18E/F Super Hornet. But a new law passed in 2012 seeks to change Brazil's reliance on foreign companies for major weapons systems. Public law 12.598 establishes a new category for a "strategic defence company", of which at least 60% of the shares are owned by Brazilians. It is not the first time a government has leveraged its defence budget to incentivise or protect a domestic industry. The US defence industry is shielded from some foreign competitors by the Buy American Act and the Berry Amendment. Brazil's new law does not prohibit foreign companies from competing on military hardware or services bids, but it does make it harder for them to win. Instead, the law exempts strategic defence companies from Brazil's tax on industrial goods, and frees them from obligations to contribute to unemployment insurance and social security programmes. The move appears partly aimed at countering the foreign defence companies that have been buying ownership stakes in Brazilian defence companies. "There is no prohibition for someone who is a multinational company, but they are not to be eligible for the benefits of being a strategic defence company," says Luiz Carlos Aguiar, chief executive of Embraer Defence Systems. The programme has already caused a minor restructuring within the defence industrial base. Two years ago, Embraer formed the Harpia Systems joint venture with Elbit Systems subsidiary AEL Sistemas, with equal ownership by both companies. As a result of the new law, former Embraer rival Avibras agreed to buy 10% of Elbit's stake in the joint venture, increasing the number of shares owned by the Brazilian firms to 60%.

Defence spending remains at a modest 1.6% of gross domestic product, but the country's rising economic output means spending has risen proportionately. Overall spending peaked in 2012 at $36 billion, of which about $5.16 billion was set aside for investments split between the three armed services.

 

"That's above what we had last year," says Luiz Carlos Aguiar, chief executive of Embraer Defense Systems. "There are some important programmes they have been reducing because they are finalising, and they are being replaced by others. That's why I believe we have space to grow in Brazil. Out of this $5 billion, Embraer, as a group, have 27%."

If that level of spending is sustained Brazil will be buying much more than new fighters and KC-390s during the next decade. The military is seeking to modernise its inventories of combat and support equipment, while introducing a wide-ranging surveillance network over the country's porous south-eastern border and territorial waters.

 

Indeed, Brazil's ambitions grew so large it appeared to briefly force Embraer on the defensive, as the promise of lucrative systems-integration contracts energised new competitors from the country's construction companies. Salvador-based Odebrecht formed an alliance with European prime contractor and EADS subsidiary Cassidian to compete for the border surveillance contract. Another Brazilian construction firm, Synergy Group, teamed up with Israel Aerospace Industries to pursue the same work.

In the end, the Brazilian army awarded the $400 million contract to Embraer in November 2012 to launch phase one of the system for the surveillance of the frontiers (SISFRON) contract.

 

The award appeared to deflate the hopes of Embraer's erstwhile competitors. Follow-on awards for SISFRON are still available and the Brazilian navy plans to launch a similar programme next year, but the Odebrecht/Cassidian joint venture has reportedly been dissolved in the aftermath of losing the army contract.

 

ACHIEVING PRIMACY

 

Instead, Embraer appears to have secured its new role as the Brazilian military's most important prime contractor, with billions of dollars in new programmes waiting on the books.

With the KC-390 already headed for series production, Embraer Defense Systems looks set to continue on a seven-year growth trend, including the defence unit that existed before the standalone company was formed. Defence sales accounted for only $227 million of Embraer's revenues in 2006, but nearly quintupled to more than $1.05 billion in 2012.

 

As a percentage of the company's overall revenues, the share claimed by the defence unit has nearly tripled to 17%, even as Embraer has introduced the Phenom 100 and 300 business jets to its product line-up.

 

The key for Embraer now will be executing on the SISFRON programme. It has only received the phase-one award, but the overall programme is valued at $4 billion during the next decade. The system is going to create a network of border surveillance stations, with ground-based radars, UAV sensors and command and control systems networked together to identify and catch smugglers crossing the open border.

 

Brazilian air force The fleet of the Brazilian air force includes Lockheed P-3 special-mission aircraft and Northrop F-5 fighters

 

"Until March we are going to finalise all of the subcontractors on the SISFRON contract," says Aguiar. "We have a deadline by the end of March, and we are in the process right now. We have already implemented our office. We have a physical office separated from Embraer in Campinas. It is a city close by Sao Paulo, close by Orbisat, which is part of the consortium."

 

Orbisat, which is partially owned by Embraer, is providing the ground-based radar for the phase-one pilot programme. Meanwhile, Atech, another Brazilian contractor partly owned by Embraer, will supply the command and control equipment.

 

The second phase of the contract is expected to be awarded in 2014, and it is not guaranteed it will be given to Embraer. "It depends on our performance," Aguiar says. "If we do the right thing they will hire us again."

 

STRATEGIC ACQUISITION

 

SISFRON's second phase is likely to usher in the use of operational UAVs in regular Brazilian military operations. Embraer anticipated the need and formed a joint venture with Elbit Systems-owned subsidiary AEL Sistemas, which is adapting the Israeli manufacturer's Hermes 450 for Brazilian requirements. In January, Avibras also acquired a 10% stake in the Harpia Systems joint venture, which adds the Falcao UAV to the product mix.

 

Although the SISFRON phase-two effort will be managed by the army, Harpia is waiting on developments with the Brazilian air force, which is charged with setting overall unmanned air system requirements for all three branches of the military.

 

"They are designing the requirements for the UAS," Aguiar said in January. "This is going to become public probably two or three months from now, and then we are going to participate and make our proposal to develop this new configuration UAV through Harpia."

 

Embraer has projected a market in Brazil worth $1 billion during the decade for new UAVs alone. The company has also invested an ownership stake in Santos Labs, which makes small UAVs, and signed a licence agreement with Boeing Insitu.

 

"It is good not having a UAV in the first phase of SISFRON because it's going to give us a bit of time to develop," Aguiar says.

 

Another market possibly worth more than $1 billion to Embraer in the next decade is Brazil's nascent satellite industry. In 2012, Embraer formed Visiona, a joint venture with national telecommunications company Telebras, to manage a growing requirement for earth observation and communications relay satellites over Brazil. Visiona is evaluating the selection of manufacturers for the satellites and the command and control systems.

 

"After that we're going to be responsible for signing the contract with the insurance company and the launching company," Aguiar says. "To integrate those parts, I think we have a chance to learn from this experience in order to add value for the second, the third and the fourth satellites that Brazil, for sure, will need in the future."

 

KC-390 SET FOR DOMESSTIC VOTE OF CONFIDENCE

 

The Brazilian air force is likely to announce a firm order for Embraer's KC-390 tactical transport and tanker at the Latin American Aerospace and Defence (LAAD) trade show in Rio de Janeiro in April, analysts say.

 

The aircraft completed its critical design review on 22 March, which means Embraer can release engineering drawings to the factory floor in preparation for building and flying the first KC-390 in the second half of 2014. If all goes well, series production will start in 2016, with deliveries starting the same year.

 

Brazil, which is paying more than $2 billion to develop the KC-390, has so far only signed a letter of intent to purchase 28 of the aircraft. Securing a firm order would be a vote of confidence from the KC-390's domestic market, and provide a significant boost to Embraer's sales campaigns to secure further international commitments for the new aircraft.

In many ways, the KC-390 is Brazil's halo product that the rising economic colossus hopes will herald its arrival on to the international defence market.

 

In addition to its home market, Argentina, Chile, Colombia, the Czech Republic and Portugal have also signed letters of intent for a further 32 KC-390s. Colombia says it will buy 12 aircraft, while Argentina, Chile and Portugal are expected to order six each. The Czech Republic is also expected to buy two jets.

 

Rebecca Edwards, an analyst at Forecast International, says Embraer hopes to convert these commitments into a total of 60 firm orders by the end of 2013.

 

Brazilian air force Embraer completed the critical design-review of the tactical transport and tanker on 22 march

Embraer estimates the medium-lift transport market is worth $50 billion during the next 10-15 years, which could mean a total of 700 orders up for grabs. While Lockheed Martin's C-130J Hercules currently dominates that market, Edwards says Embraer could seize a significant portion of those sales. "The KC-390 is going to pursue sales as the C-130 replacement, a market of considerable size and potential," she says. "Granted, the KC-390 will not be the only competition, but it can be expected to win a good portion of the market. Based on this information, Forecast International anticipates unit production to reach 98 aircraft by 2021 and as high as 234 by 2027."

 

Indeed, Embraer admits the Lockheed-built tactical transport is its chief rival, even though it was not the company's original intent to compete head-to-head.

Richard Aboulafia, an analyst at the Teal Group, says it is certainly possible that Embraer could sell anywhere from 150 to 200 aircraft, but that is assuming the US market remains closed to Embraer. Teal's forecast calls for a more gradual ramp up of the KC-390 line, with 25 aircraft being built by 2021. Aboulafia says Embraer's projection for a potential market of 700 aircraft is roughly on target, but much of that is locked-up by the USA.

 

Edwards says many of Embraer's sales will come in the Latin American and African markets, where the USA has comparatively less political clout. Political muscle is a huge factor in military aircraft sales, Aboulafia adds, but Embraer could compete by offering a "really good" aircraft at low prices. However, the challenge will be to hold the KC-390's price down at around the $50 million level. "There are all kinds of reasons to prefer a C-130J, but what they're really going for is value for money for a really good cargo box," Aboulafia says. "They're going to find a niche here."

 

Paulo Gastao Silva, Embraer vice-president for the KC-390 programme, says the aircraft is "on track" to meet its cost targets, projected at between $2.3-2.4 billion. In fact, there has been a slight drop of about $42 million in the projected development cost for the transport, he says.

 

Gastao Silva's figures do not quite match up with earlier cost projections, originally budgeted at $1.3 billion, according to a Teal Group report. The report projects the aircraft's development costs would increase by $2 billion to $3 billon, which seems to have at least partially borne out.

 

One factor which could drive up prices is that the Brazilian government has mandated the use of as many local suppliers as possible, depriving programme managers of the ability to choose the best components at the lowest possible cost, Aboulafia says. Local subsystems tend to cost more than their international counterparts because of economies of scale and development costs. "It's not a killer, it's just something that hobbles designers, especially when they're trying to keep costs down," he says.

 

But the KC-390 does have significant advantages over its Lockheed-built competitor in that it is a much newer design which incorporates new technologies such as fly-by-wire, Edwards says. The Brazilian aircraft carries a 23t payload, which exceeds the roughly 21t carrying capability of the C-130J. Additionally, the KC-390, powered by twin International Aero Engines V2500 turbofans, is also 100kt (185km/h) faster than the Lockheed type, with a cruise speed of 465kt.

Gastao Silva says the KC-390 is being designed specifically to operate from austere semi-prepared airstrips. He adds that the aircraft can make 10 passes on a fully unpaved runway before the landing strip is rendered useless.

 

But while choosing the V2500 was a good move because it is a proven airliner engine with a huge installed base on the Airbus A320 fleet, turbofan engines may actually hinder the KC-390's appeal as a tactical transport, particularly for special missions, Aboulafia says. "For this size class, that's assuming more of a cargo mission rather than a special operations," he says. "It also assumes more developed airfields rather than improvised or rough ones."

 

One of the questions that must be answered about Embraer's claims pertaining to the KC-390's improvised airfield capabilities is what kind of payload the jet will be able to carry when operating from unpaved strips, Aboulafia says. There is also the ever-present danger of foreign object damage to the engines, which is less of a problem on turboprop-powered aircraft.

 

Additionally, some users prefer turboprops for low-altitude missions because they are much more fuel-efficient when operating in those flight regimes, Aboulafia says. "At low altitude there's nothing like a prop but, moreover, the quad-engined C-130 has more redundancy for those kinds of operations, which many potential users prefer. If you're doing more cargo or longer-range, jets are just fine, that's why the [Boeing] C-17 does just fine with turbofans," Aboulafia says.

 

Time will tell if Brazil and the KC-390 will be able take on Lockheed and the political muscle of the USA, securing a niche for itself. In any case, the KC-390 should prove to be a remarkable achievement once it completes its development cycle and enters into service.

A group of commercial banks has drawn up a loan to fund Indonesia’s purchase of

truck-mounted artillery from French land systems maker Nexter, sources close to the deal said.

Shown is Nexter's Caesar self-propelled guns. (photo EMA)

Mar. 31, 2013 - By PIERRE TRAN  - Defense News

PARIS — A group of commercial banks has drawn up a loan to fund Indonesia’s purchase of truck-mounted artillery from French land systems maker Nexter, sources close to the deal said.

The agreement is the latest in Jakarta’s push to “catch up” on defense procurement after what one analyst called “a long period of atrophy.” And by financing the deal through a bank loan rather than paying cash, Indonesia is part of a growing number of emerging defense markets looking to stretch their buying power as they seek to beef up militaries.

“Indonesia is a key target for everyone,” Grant Rogan, chief executive of Blenheim Capital, a specialist in defense offset deals, said March 26. “Our client base, which includes 25 large aerospace and defense companies, all, without exception, view Indonesia as a prime target.”

Jakarta’s short-term high-interest loan will pay for 34 Caesar 155mm 52-caliber guns, the sources said.

Indonesia required a buyer’s credit for 85 percent of the 108 million euro ($140 million) contract, with funding to be delivered to the Indonesian Finance Ministry in April, an executive said.

Indonesia’s request for bank financing is just one of a number of weapons deals for the Asian country, a European banker said.

The Asian market for bank loans “is concentrated in Indonesia,” as other countries such as India, Malaysia and Thailand pay cash, the banker said. Jakarta is in the midst of a procurement drive after staying out of the arms market for years, due to a lack of money and Western sanctions over human rights abuse. Now, the government is trying to “catch up,” said Richard Bitzinger, senior fellow at the S. Rajaratnam School of International Studies, Singapore.

“Indonesia is in the midst of trying to upgrade its military after a long period of atrophy,” Bitzinger said. Jakarta buys weapons from a variety of suppliers, as it seeks to avoid being too dependent on a major foreign arms producer and to find the best value for money, he said.

Despite the rule of paying cash, a market for bank funding is rising, Rogan said. “Many countries are requesting financing.”

Blenheim has added a specialization in financing that complies with Islamic Sharia law, reflecting the rising demand.

Rogan was speaking from the Langkawi International Maritime and Aerospace Exhibition, Malaysia.

Banks Pursue Deals

The pricing of loans is a sensitive issue, and the sensitivity is heightened by the unusual nature of the Indonesian artillery deal.

A source close to the deal said there are not many banks in this group of lenders, which is expected to be composed mainly of French lenders. The term of the loan is expected to be for a relatively short period, under five years.

The margin on the proposed bank loan is estimated to be below 200 basis points, the source said. Banks set the interest on loans using basis points — 1/100th of a percentage point — which are keyed to official interest rates such as the London Interbank Offered Rate.

A financial specialist said the estimated margin on the Caesar deal is relatively expensive, in view of the short loan period and the fact that the deal is backed by a sovereign guarantee from Indonesia.

The margin and loan period indicate France and the bank lenders are essentially taking a short-term view of Indonesia as a financial risk, with a loan covering production and delivery of the guns, and perhaps after-sales warranty, the specialist said.

A lower margin, on the other hand, would indicate a long-term view of Indonesia’s attractiveness as a client.

Indonesia, which sees itself as a regional power and is undergoing a procurement drive to reflect that role, moved last year to holding tenders for bank lending instead of private trade deals, attracting the attention of international and local banks.

Since then, about a dozen big banks expressed interest in arranging loan finance for eight or nine arms contracts Indonesia signed with Brazil, China, France, Russia, Spain and the United States.

The loans range from large orders to small deals of around $10 million.

For instance, Jakarta relaunched a bank tender this year to raise money to buy the Brazilian Avibras Astros B multiple rocket launcher system.

The Astros is capable of firing cluster submunitions. Western banks likely stayed away because the Oslo convention bans these weapons, forcing Indonesia to reset the tender a couple of months ago.

Indonesia reportedly used that type of munition in East Timor when the local population called for self rule in a 1999 referendum.

Indonesia also has a tender out for bank loans for 25 Bell 412 utility helicopters for the Army. Jakarta is also spending $750 million to upgrade secondhand F-16 C/D fighters provided free by the U.S. government. That upgrade will be a cash deal through the Foreign Military Sales regime.

The Down Side for Lenders

A bank loan for weapons poses problems for commercial lenders, the defense specialist said.

Lending on civil programs such as a nuclear power plant or a highway is relatively simple because they can generate revenue, part of which can be placed in escrow holding accounts to act as security.

But weapons have no power to raise revenue, and what is worse, might be destroyed. If a country loses use of its arms, it might stop repaying the loan. “What security is that?” the specialist said. Banks are also concerned about how the public views lending on arms deals. One large British bank refuses to lend on arms, two sources said.

Given the size of the Indonesian economy, the 108 million euro purchase price for the Caesar guns “is peanuts,” the specialist said.

A striking aspect of the Indonesian artillery loan is what is seen as the relatively long time between the signing last summer and the financing in April.

That long lead time may signal a slowing of arms deals, perhaps delaying some until 2014. Or perhaps it reflects a lower economic growth rate, or simply a bottleneck in the finance and defense ministries as staff struggle to cope with the volume of orders.

A loan for 85 percent of purchase amount is the maximum allowed under trade rules of the Organization for Economic Cooperation and Development, with the 15 percent paid in cash, an export credit executive based in New York said.

Trying To Catch Up

Indonesia has a robust defense and aerospace industry in place, and the government wants to co-produce and co-assemble to build the domestic base, Rogan said.

Malaysia is the leader in that drive to build the defense industrial base, and wants to take a regional approach with Indonesia. The two countries would avoid product competition, and instead, buy from each other.

That approach drew foreigners’ skepticism three years ago, yet Malaysia is buying six-wheeled vehicles from Indonesia, and Indonesia is buying vessels from Malaysia, Rogan said.

Indonesia is rated the 16th largest economy, with an estimated growth rate of 6 percent in 2012, slowing from 6.5 percent in the previous year, the CIA World Factbook said.

The Indonesian government needs to improve poor infrastructure, which impedes growth, while also dealing with labor unrest over pay and cutting a fuel subsidy amid high oil prices, the country report said. Corruption, poverty and unemployment are also big problems, the report said.

Indonesia is expected to become the sixth or seventh largest economy.

Observers see the recent purchases as an “unblocking” of Indonesian procurement after a fallow period of three or four years. The big orders before the quiet spell were mainly Russian deals, financed by Russian banks.

Russian banks have lent money for Indonesia’s purchase of Sukhoi Su-27 and Su-30 fighters, the European banker said. Russian loans have helped Venezuela buy around $4 billion of weapons. The VTB bank is active in Vietnam, and the Russian lender is understood to have funded military purchases.

U.K. Prime Minister David Cameron visited Indonesia in 2012, looking to drum up defense deals after the previous Labour administration halted arms sales on allegations BAE Systems Hawk jets were used to bomb civilians in East Timor in 1999.

BAE and AgustaWestland executives went with Cameron on the visit.

Indonesia is now seen as an attractive market after a Western moratorium because of its human rights record and brutal put-down of movements for self-determination in Aceh, Papua and East Timor.

Jakarta also has close ties with South Korea, and some of the recent deals are financed on a government-to-government basis, the banker said.

These are understood to include Jakarta’s 2012 $1 billion purchase of three attack submarines — the first built in South Korea with Indonesian engineers on site, part of the second built in Indonesia, and the third built by state company PAL in Surabaya.

Jakarta has also bought 17 of the KT-1B basic trainers.

Jakarta and Seoul share similar ambitions.

“I think the Indonesians like working with the Koreans as they are in roughly the same situation: rising, aspiring regional powers with ambitions to play larger roles in their respective regions, and to also create sophisticated arms industries by which to do so,” Bitzinger said.

“The problem is, the Koreans have a level of technological sophistication and organizational production capability that the Indonesians still lack. So any partnerships with the Koreans still leave the Indonesians in a decidedly junior role,” he said.

Indonesia has also bought Damen missile corvettes from the Netherlands, financed by Dutch banks. Some Dutch banks have a policy of no support for military sales but they are quietly funding the deals anyway.

_________

Andrew Chuter in London and Wendell Minnick in Taipei contributed to this report.

30 mars 2013 ActuDéfense

Le chef de bataillon Jean-Baptiste Vouilloux, à l’occasion de la sortie de son ouvrage « La démilitarisation de l’Europe », a répondu aux questions d’ActuDéfense. Il rappelle que ses propos n’engagent que lui et en aucun cas l’institution militaire.

ActuDéfense : Vous décrivez dans l’ouvrage que vous venez de publier, « La démilitarisation de l’Europe », le processus par lequel nos pays ont progressivement réduit leurs budget de Défense. Quels ont été les grands moteurs de cette démilitarisation ?

CBA Jean-Baptiste Vouilloux : Depuis 2009, les Etats membres de l’Union européenne réduisent leurs budgets de défense avec constance et détermination : de 2010 à 2012, 21 des 27 Etats membres de l’Union Européenne ont baissé, ou simplement maintenu, leur budget de dépense. Parmi eux, 7 ont consenti des coupes de plus de 10%. A l’inverse, les dépenses militaires augmentent sur tous les autres continents : il existe donc un particularisme européen dont je tente de comprendre l’origine dans ce livre.

Bien évidemment, la crise financière de 2008 a accéléré cette dynamique de démilitarisation, mais celle-ci puise ses racines beaucoup plus profondément. En effet, les populations européennes, martyrisées par deux guerres mondiales, ont voulu conjurer une Histoire belliqueuse et meurtrière. La construction européenne s’est donc bâtie sur un projet profondément idéaliste, visant à bannir les rapports de force dans les relations internationales. Cette démarche fut un succès, puisque l’Europe a connu la plus longue paix de son histoire (à l’exception notable des Balkans).

Par ailleurs, les institutions militaires européennes ont été profondément ébranlées, et remises en cause, par les mutations sociétales des années 1960. Enfin, la disparition de la menace soviétique et la conviction que les Etats-Unis protègent l’Europe ont renforcé le sentiment diffus que, finalement, les armées ne servaient plus à grand-chose. Volonté de sortir de l’Histoire, éloignement de la guerre, culte du soft power, déresponsabilisation stratégique, tous ces ingrédients expliquent qu’en période de crise économique, les budgets de défense sont les premiers sacrifiés en Europe.

Les Européens ont-ils tous la même approche de cette question ? Suivent-ils tous cette même tendance dans les mêmes proportions ?

Au-delà de ces facteurs communs, les pays européens traduisent différemment cette démilitarisation. En simplifiant beaucoup, et au risque de paraître caricatural, la plupart des pays d’Europe centrale et orientale, à l’exception de la Pologne, pratiquent la politique du moindre effort en termes de défense et appuient leur stratégie sur le bouclier américain. D’autres pays (Grèce, Espagne, Portugal), littéralement asphyxiés par la crise économique, n’investissent plus dans leur défense et sacrifient des pans capacitaires complets. Par ailleurs, des Etats comme les Pays-Bas, l’Autriche ou la Belgique, tâchent encore de participer aux coalitions internationales mais ont quasiment renoncé aux capacités conventionnelles de haute intensité.

Quant à l’Allemagne, elle aurait les moyens de devenir la première puissance militaire européenne (nucléaire exclue) mais s’y refuse politiquement. Enfin, la Grande-Bretagne et la France, qui peuvent encore aspirer au statut de grande puissance militaire, sont soumises à des pressions budgétaires qui les contraignent à reconsidérer leur niveau d’ambition. On le voit donc, à des degrés divers, tous les Etats membres de l’Union Européenne sont touchés par cette dynamique de fond : il n’y a guère que la Suède qui envisage d’augmenter son budget de défense dans les années à venir.

Vous sous-titrez votre ouvrage « un suicide stratégique ? », laissant supposer par ce point d’interrogation une incertitude. Pourquoi ce terme et qu’est-ce qui vous laisse penser que cette tendance à la démilitarisation est un processus dangereux ?

La mondialisation correspond à une ouverture économique et culturelle, mais n’a en rien éradiqué les rapports de force dans les relations internationales, bien au contraire. C’est fort de ce constat que les puissances émergentes investissent massivement dans le secteur de la défense. Ce décalage entre l’Europe et le reste du monde est d’autant plus préoccupant que notre proche périphérie est hautement anxiogène : qu’il me suffise d’évoquer les conséquences incertaines du printemps arabe, l’implosion de la Syrie, les risques d’escalade entre l’Iran et Israël, sans parler des rodomontades russes. Par ailleurs, absorbés par leur nouvelle stratégie asiatique, les Etats-Unis se désengagent sensiblement de cette partie du monde et il n’est pas certain qu’ils garantissent notre sécurité ad vitam aeternam. Dans ce contexte, la démilitarisation de l’Europe est suicidaire et j’assume la violence de ce terme. Pour autant, j’utilise le point d’interrogation car je suis convaincu qu’il n’est pas trop tard. En effet, l’extraordinaire patrimoine militaire de l’Europe ne sera pas effacé d’un trait de plume. De plus un nombre croissant de penseurs et de décideurs politiques prennent conscience de ces enjeux et comprennent que les Européens ne seront plus capables de défendre leurs intérêts en poursuivant sur cette voie.

Beaucoup considèrent que les mutualisations et les coopérations européennes constituent l’unique solution pour remédier à cette pression budgétaire qui touche de plein fouet les budgets de défense. Qu’en pensez-vous ?

Puisque les Etats membres de l’Union Européenne n’ont plus les moyens de financer leurs outils de défense, autant mutualiser : c’est le fameux « Pool it or loose it » évoqué par Catherine Ashton. L’équation est séduisante… mais un peu simpliste. En effets, les projets de coopération trop ambitieux fonctionnent mal car les programmes strictement nationaux ont l’avantage de préserver les intérêts industriels des Etats. De plus, quand trop de pays sont impliqués dans un programme, les exigences de chacun et les différentes versions développées entraînent du retard et des surcoûts, c’est-à-dire l’inverse de l’effet recherché. En fait, pour l’instant, les programmes de coopération qui marchent vraiment impliquent un petit nombre de pays aux ambitions semblables, et sur des capacités qui n’impactent pas leur souveraineté. Quant aux unités multinationales, elles se heurtent aux différences de culture et aux divergences politiques des gouvernements concernés. Les Européens seront mûrs pour des grands projets de mutualisation quand ils développeront une vision stratégique commune et rationaliseront leur industrie de défense à l’échelle européenne, ce dont on est encore loin.