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13 mars 2015 5 13 /03 /mars /2015 08:50
Helicopter Capability: Defence Minister Philip Dunne at RAF Benson



12 mars 2015 Defence HQ

 

The MOD has delivered some of the most technologically advanced and well supported helicopter fleets in the world over the last year. In the last 12 months, the Puma Mk2, Merlin Mk2, Chinook Mk6 and both the Royal Navy and British Army Wildcats have all been declared ready for operational use. As a result, UK forces now have new military capabilities that can be deployed around the world. The Merlin Mk2 is currently delivering vital support in Sierra Leone to tackle the spread of Ebola; the Puma Mk2 is preparing to contribute to NATO’s training and assistance mission in Afghanistan; and the Royal Navy Wildcat is deploying for global maritime operations.

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3 mars 2015 2 03 /03 /mars /2015 17:20
Opportunities for UK technology companies in the US defence market

 

24 February 2015 Ministry of Defence and Philip Dunne MP (Transcript of the speech, exactly as it was delivered)

 

Speech by Mr Philip Dunne, Minister for Defence Equipment, Support and Technology.

 

Introduction

We couldn’t have chosen a better venue to discuss our US defence relationship than the Cabinet War Rooms.

Because this is where Churchill would discuss the progress of the Second World War…on a daily basis with President Roosevelt…

…providing a reminder that ours is a partnership based on the firmest of historic footings

In World War Two…that unique combination of UK/US expertise…was perhaps personified in the Tizard Mission which produced a paradigm shift in radar technology.

During the Cold War…it was our special relationship that enabled us to strike the Polaris… and later Trident… agreements …that strengthened both our nations in the face of the Communist threat.

And today co-operation continues in all areas …whether in intelligence…in force protection… in airborne ISR…or in the interoperability of our force structures.

 

Today’s relationship

Of course, given the US’s technological pre-eminence in many areas it is inevitable that we still purchase a significant amount of equipment from our American friends …from Huskeys and Harpoons to Ridgbacks and Reapers

But this relationship is as deep as it is broad.

Yes, we buy capability from the US.

But often, as in the case of Rivet Joint, we find new and innovative ways to operate it.

At the same time there are instances of reciprocity.

So the C17 programme might be built by Boeing in the US but their high-tech international training centre is in Farnborough.

While with the Chinook Fleet we get the best availability.

At the same time the US remains one of our biggest customers.

Official Statistics from UKTI DSO cite 12% of UK defence exports going to north America last year,

In 2013 the Department of Defense procured $1.5 billion in supplies, services, fuel and construction from UK entities …

Plus there is the unseen but growing British content in the supply chains of US defence companies, which draws upon a gamut of dual use technologies.

And while the US rarely procures platforms and major systems from overseas… when it does…it often chooses British.

Whether it is the US versions of the Harrier Jump Jet and the Hawk Jet Trainer in decades past.

Whether it is our Rolls Royce MT30 engines or our Martin Baker Ejection Seats fitted in every F-35 which will come into service for decades to come.

Some of the companies here today provide excellent examples of British success trading in the US defence market:

….Ultra Electronics, TMD, Cobham, Astute Electronics …. to name but a few.

Each demonstrating that you don’t have to be a prime contractor to break into the market.

Yet what has sustained our relationship and kept it fresh over the years is continual collaboration.

Once upon a time we were pioneering jet propulsion

Today we are working on the most advanced jet aircraft on earth in the form of the F35 …with the UK proud to be the US’s only level one partner.

We’re also partnering today on a wide range of 100 other S&T projects.

Working hand-in-glove to develop the Common Missile Compartment

…the infra-red counter measures for aircraft… …and advanced night vision capability.

 

New opportunities

Yet you’re here today because that priceless prize of working with the US is growing.

Like us … the US is looking to the future.

As equipment technology advances exponentially… as advanced surface-to-air and anti-access area weapons proliferate.

…as multiple potential adversaries increasingly compete to acquire fifth generation technology …the US has seen its technological advantage …the bedrock of its defence for the past 60 years …gradually erode

So it is looking to make another giant leap forward …upgrading, developing and fielding breakthrough technologies and systems.

That is why the US, last year, launched its new Defence Innovation Initiative, the Third Offset Strategy, which I discussed with Deputy Secretary Work in December.

Bob Work is asking serious questions about how to improve US capability in a host of areas:

How can it increase its resilience and reduce its dependence on space technology?

How can it increase its underwater capabilities to counter anti-access and area denial, and focus on autonomous systems and underwater payloads?

How can it maintain air dominance and continue to strike in non-permissive environments?

How can it counter electronic warfare, maintain stealth and develop jam-resistant missiles?

And how can it keep up to speed with emerging technologies and concepts such as autonomy and advanced manufacturing …when investment in the commercial sector is outstripping military research and development?

The challenge for the US is that it must do all this while still driving down its costs… …something with which we’re only too familiar in the UK.

Last year, Frank Kendall, the US Secretary of Defense for Acquisition, Technology and Logistics unveiled his acquisition reform program ‘Better Buying Power 3.0’.

A strong sign that ….like us… in tough times ….our American counterparts see the virtue of cooperative research, co-development, and co-production.

Why pay to duplicate technology solutions that already exist elsewhere?

We believe the determination of the US to broaden its horizons… is now opening up new opportunity for its allies as I was discussing with Frank only on Sunday at IDEX in Abu Dhabi.

This is especially so for those British companies, with the expertise the US is looking for.

And that’s why you’re here today.

 

A big challenge

I’m not saying it will be easy to break into the American defence market place.

I’m speaking as someone who spent some years working in the US myself, so I am under no illusion as to the challenges.

I know the US Defence market is truly vast.

10 times the size of our own in this country.

For example, the US Special Operations Command, its smallest service, is roughly the size of the British Army

And that the US Marine Corps, also regarded in the US as “small”, is the size of the whole of UK defence…and can muster a similar spectrum of capability.

All this presents genuine challenges, especially to small businesses

Yet at the same time it brings huge possibilities beyond anything we see in Europe.

So you need to know where to start..

…how to find the right route to market …and how to establish good local partners

You need not just the ability to grow…deliver at scale …and at the pace such a large customer demands.

…but to get to grips with an unwieldly procurement machine that is considerably more complex than UK MOD …where the preference for domestic suppliers is enshrined in law …and where export controls and the infamous International Traffic in Arms Regulation control the proliferation of US technology.

Don’t be put off

But don’t be put off.

If you’re already concentrating your business on exportability, modularity and innovation….

…and we’ve rewritten our policy to ensure ‘exportability’ must be actively considered from the very beginning of our own acquisition cycle

…then you’re in the right place

And today’s sessions will help you with some of the practicalities.

The US experts in this room

…from our MOD staff in Washington, ….UKTI’s Defence and Security Organisation, …and BIS in London …stand ready to use their excellent local knowledge …to help you disentangle the complex web of regulation …decode the unfathomable jargon …and navigate around the labyrinthine US procurement structure

I would also like to thank the experts from law firms Crowell & Moring, and Stoock

…as well as from Bloomberg Government for the time they have taken and the interest they have shown in supporting UK industry.

…by travelling from the US to share their professional advice with you today.

 

Bilateral agreements

Yet their advice alone isn’t the only thing that should give you the confidence to go to America.

We’ve also drawn up a raft of bilateral agreements to help your cause.

In December I renewed the Reciprocal Defence Procurement MOU

It is designed to create a level playing field for UK and US companies accessing each country’s market.

We’re also coming up to the second anniversary of the Defence Trade Cooperation Treaty which eases the export control burden for certain categories of technology.

Colleagues in MOD are now working with authorities in the US to ensure the treaty retains its value in the wake of reforms that have begun easing US export control regulations in some technology areas.

And we also have the Science & Technology communiqué that I signed with Frank Kendall last year.

It is there to accelerate our joint programmes of research in disruptive technologies …whether in situational awareness, satellites and communications

And it is already paying dividends.

There are currently around 100 distinct R&D programmes underway between the UK and the US.

…an increased number of US exchange scientists and engineers in the UK.

…and a new scheme for short term exchanges between UK and US scientists.

The value of the Communiqué has been affirmed by the development of co-operation into quantum technology, autonomy and directed energy.

While the recently signed master submarine research agreement, and related agreements on undersea technologies mean greater opportunities in those areas as well.

Inevitably, the names of these agreements matters less than what they will do for you.

Again our experts here today can give you chapter and verse.

 

Defence Growth Partnership, new solutions centre and DSIEP

But today’s event isn’t the only place you’ll find advice to help your business succeed when crossing the Atlantic

Our Defence Growth Partnership now provides a collaborative environment for the best brains from industry, academia and government to come together.

…making the UK defence industry more sustainable and more competitive …and assisting industry in providing leading edge capability for our armed forces around the world.

Our new Defence Solutions Centre is designed to act as a fulcrum for international requirements.

By utilising the latest market data and making the most of its understanding of the UK’s value chain… it will create capability and technology roadmaps to respond to future international opportunities.

Undertaken in an environment where the UK remains a leader in academic research.

…let’s not forget the UK still publishes 16% of the world’s top quality research

… still punching way above our weight

…it will help British business make the most of its great potential

Meanwhile, our Defence and Security Industrial Engagement Policy is encouraging overseas companies…including several US primes…to work with the UK’s defence and security sector.

We are working with UKTI DSO to offer showcase events for non-domiciled primes to meet the UK defence and security supply chain, engineer to engineer, I have attended 2 such events in the past year, with Boeing and Raytheon, where each met over 100 UK supply chain SMEs, and real business has resulted.

We are seeking to use this policy to help our industry become better placed to secure exports as well as support front line capability.

 

Investment in innovation

Bi-lateral agreements and top quality advice will help you punch above your weight when competing in the American market.

But the government is also helping you in another way …we’ve put aside investment for innovation…the lifeblood of defence

We’ve protected our annual investment in S&T…so it remains at least 1.2% of the defence budget…

And we’re channelling that money into our Centre for Defence Enterprise…

…which is already developing novel high risk, high potential benefit innovations …such as game changing quantum technologies …new advanced materials …and a powerful neutron microscope …that will allow us discover materials for faster planes, new and better computer chips and feather lightweight kit for our military

 

Conclusion

So my message to you today is that when it comes to the US market …the market is changing

Becoming more transatlantic.

In both directions.

So please enjoy the day.

Chat to the experts.

Share your experiences.

Make the connections who can help you break into this market.

The US accounts for almost 37% of worldwide defence expenditure … in a market estimated back in 2013 to be over US$1.7 trillion

That’s a massive opportunity

And we’re keen to do what we can to help you get your share.

As for those concerned the journey ahead might seem a long one …let me leave you with a bit of sage advice from Churchill himself:

“You can always count on Americans to do the right thing, after they’ve tried everything else”

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25 février 2015 3 25 /02 /février /2015 13:50
Mr Philip Dunne, Minister for Defence Equipment, Support and Technology

Mr Philip Dunne, Minister for Defence Equipment, Support and Technology

 

23 February 2015 Ministry of Defence and Philip Dunne MP

(Transcript of the speech, exactly as it was delivered at Chatham House)

 

Speech by Mr Philip Dunne, Minister for Defence Equipment, Support and Technology.

 

Introduction

Good Afternoon.

It’s a pleasure to be here today to take part in a timely discussion…

…as we prepare to run the triple gauntlet of a comprehensive spending review followed by a Strategic Defence and Security Review, and as you may have a noticed, both preceded by a General Election 75 days from today, or as I prefer to think of it polling stations open 1,736 hours from now.

 

Challenging times…require change

But looking beyond the horizon of domestic UK politics for a moment, to say these are challenging times is something of a British understatement.

The world is dangerous…and getting more so.

As a nation our appetite for taking risks with our security remains low.

While our national ambition for global influence remains resolute.

At the same time, budgets are being squeezed and traditional military advantage is being undermined by disruptive technology and hybrid warfare.

So if we’re to survive and thrive in this new international dynamic we need to think differently.

I’ll explain what I mean, shortly.

But before I do, I must emphasise that while creating and sustaining armed forces fit for the 21st century will not be plain sailing…for any nation…

In the UK, the prevailing wind is behind us.

 

Defence Transformation

Thanks to 5 years of defence reform, we’re on the right trajectory.

We’ve filled the black hole in the defence budget and balanced the books.

For the third consecutive year, we’ve published an affordable equipment plan, worth £163 billion over 10 years, with substantial headroom and flexibility built in…

We’ve rethought our approach to defence acquisition, redefining it along the principles of value for money and open procurement.

…and spelling it out in black and white in our 2012 white paper: ‘National security through technology’.

We’ve also got a grip on our big ticket procurement projects.

And you don’t just have to take my word for it.

We have in this country a National Audit Office admired around the world for its fearsome independence from the government of the day. Consequently its pronouncements on departmental performance, especially its report on major procurement projects, are eagerly anticipated by the Ministry of Defence each year.

So to illustrate how far we have transformed defence acquisition, you can do no better than look at the position we inherited from the NAO’s report on 2009, where the top 15 defence projects were a staggering £4.5 billion over budget in year and 336 months overdue.

Contrast this with last month’s NAO ‘Major projects report’ which confirmed the top 11 defence projects are £397 million under budget and in aggregate only 14 months over time.

 

A much leaner machine

And we have also got to grips with the formidable administrative machinery of the Ministry of Defence, where I see our transformation as an exemplar of this government’s approach to public service reform.

Head Office is smaller, more focused and more strategic. By the end of next month there will be 25,000 fewer civil servants supporting our armed forces, 2 times the proportionate head count reduction of the frontline.

Budgets have been devolved to the front line commands…with the men and women at the coalface taking responsibility for spending decisions.

And, when it comes to our corporate services, we’ve injected some re-invigorating private sector expertise…only last Thursday I announced the preferred bidder for outsourcing the logistics, services and commodities activity to bring defence’s antiquated inventory management and logistics into the 21st century.

Our Head Office now adopts a more commercial approach…ensuring we are a more intelligent customer; better able to get high-quality equipment and services at best value for the taxpayer.

 

Equipment coming on stream

Over the past year alone we’ve made a steady stream of investments in next generation kit and delivered new capability into service.

This includes:

On land, the biggest armoured fighting vehicle order for the British Army in a generation, a £3.5 billion contract for 589 fully digitalised Scout specialist vehicles…

At sea, the floating up of the Royal Navy’s flagship Queen Elizabeth Carrier, followed by confirmation it will be joined in service by our second operational aircraft carrier.

And only last Friday, the Prime Minister announced an £859 million contract for long lead items for the first 3 of our next generation Type 26 frigates.

Beneath the oceans, the launch of HMS Artful, the third of seven Astute class hunter-killer submarines.

In the air, the arrival of the Royal Air Force’s first A400M Atlas transport aircraft, which this month I helped christen the City of Bristol to reflect the contribution that city is making and will make to this programme for years to come.

And last July the Prime Minister announced an extra £800 million of investment in intelligence and surveillance assets for our emerging cyber domain.

The contrast with the previous administration’s legacy couldn’t be starker:

where there was a £38 billion budget black hole, now there is a balanced budget; where there were cost overruns, now there are cost savings; where equipment deliveries were years late, now they are either on time or a few months behind,

in short, where there was chaos, now there is competence.

But we’re not complacent.

Which is why we’re continually working to perpetuate the transformative and progressive culture that has carried us this far.

More specifically…as I said earlier…we’re ensuring that from first to last… everyone in UK defence thinks differently.

More innovatively.

More imaginatively

And more internationally.

And I’d like to touch on how we’re doing that when it comes to defence procurement.

 

First: thinking more innovatively

Firstly, thinking more innovatively…an imperative if we’re to prepare for the world as it will be…not as we hope it will be.

Because it’s innovation that delivers the military productivity so key to realising successful military outcomes in a climate of continuing budget pressure.

What’s more, it’s innovation that underpins national prosperity…driving productivity and helping us move towards an export led recovery.

And the wheel turns, neatly, full circle when you consider that a strong economy is the wellspring of strategic strength.

With such high stakes, and a return to a more contingent posture following drawdown from Afghanistan, the MOD is focusing our efforts to unlock innovation wherever we can.

So we’re protecting our S&T spend…ensuring it remains at least 1.2% of the defence budget…

…And we’re investing an increasing amount of that on research into game-changing “disruptive” capability…

This year it was around £40 million.

Next year, we hope to increase that to £60 million.

Meanwhile, our Centre for Defence Enterprise develops novel high risk, high potential benefit innovations on everything from complex weapons to sensor navigation and guidance.

At a showcase earlier this month I saw for myself some of this new research effort into analysing social media trends to identify potential threats of tomorrow.

But investing in innovation is only the start…

We must weave it into the very DNA of defence procurement.

Which is why we’re increasing opportunities for SMEs …where entrepreneurs and scientists provide the niche capability and groundbreaking ideas that give us the edge.

And we’re doing that by making our procurement procedures more transparent, simpler and faster…

…engaging SMEs through a dedicated forum, which I chair…

…and setting ourselves challenging targets through an SME action plan.

And beyond the confines of MOD, we’re working with defence primes…encouraging them to open up their supply chains…

…not just to those in the defence business but to SMEs from across the spectrum…from computer gaming to motorsports.

Because military technology is no longer the main driver of civilian sector advances…it’s increasingly the other way around.

And we’re doing this…amongst other ways…via the Defence Growth Partnership…

…bringing together the best brains in industry, government and academia…

…fostering a collaborative environment to ensure the UK defence industry becomes more innovative, sustainable and competitive.

Things are moving fast.

The DGP’s Centre for Maritime Intelligence Systems in Portsmouth is up and running…a UK Centre of Excellence, to become a test bed for new systems and technology that can be sold around the world.

And it’s soon to be followed by the Defence Solutions Centre in Farnborough, which I have high hopes will also become an international centre of excellence for defence innovation.

So we’re doing our best…but we are also asking industry to step up to the mark.

Which is why we are looking to recalibrate our relationship.

Whereas, in the past, defence contractors looked upon the MOD as a benevolent cash cow that would fund its R&D, and then also pay for any development cost overruns…

Under our stewardship…working with industry…we’ve established a new mechanism to share pain and gain equally above a realistic threshold by aligning our interests more closely.

I want to see industry adopt this partnership approach more widely.

Not just identifying and managing risk and opportunity but also bearing and sharing it, in a spirit of partnership as we develop capabilities for a broader defence (and sometimes adjacent civilian) customer base.

But our ask goes beyond risk.

We’re now demanding that ‘exportability’ is actively considered from the very beginning of the acquisition cycle…


…because developing bespoke capability just for the UK attracts a cost premium that is not always justifiable, or affordable.



This will require industry and government to work together to assess our own requirements in the full context of the global export market…

…sharing both the opportunities and risks that come from developing ‘export ready’ capability.

But done properly the potential benefits are tangible:

First, the MOD gets the best kit for the best price.

Second, industry will reap the rewards of a virtuous circle of innovation, exportability and productivity.

And third, UK PLC will benefit from greater security and prosperity.

Which brings me on to my second point.

 

Second: thinking more imaginatively

Because…just as we cannot defend our security interests from Fortress Britain, neither can we advance our prosperity solely from within our shores.

Which is why, when it comes to building a strong UK defence industrial base capable of exploiting innovation to its greatest effect…we must be increasingly imaginative in the way we champion foreign investment on the one hand and exports on the other.

So, through our Defence and Security Industrial Engagement Policy…we’re encouraging overseas primes to extend opportunities for UK innovators to become part of their supply chains.

The UK defence industry is rightly proud of its place as the broadest and deepest supply chain outside the US. We have more companies engaged in defence and security than France, Germany and Italy combined.

But we are also using wider government initiatives…

…Like reducing corporation tax to one of the lowest rates in the EU’s big 5 economies…

…tax reliefs for R&D and exploiting patents.

…and deregulation

…to ensure the UK remains the number one choice in Europe for foreign direct investment.

Our success is manifest.

As just one example, more than 30% of Saab’s Gripen multi-role fighter aircraft is supplied by British industry.

And when it comes to banging the drum for UK defence exports, we’ve worked hard too.

Through the DGP we’ve been strengthening the roles and capabilities of UKTI’s Defence and Security Organisation.

While, from the Prime Minister down, ministers have taken every opportunity to promote UK defence products across the world.

Far from being embarrassed, as frankly many in the previous administration were, supporting the British defence industry is something we’re proud to do… as I was leading the UK delegation of 80 British companies at IDEX in Abu Dhabi yesterday.

This is not least because we know we have the most robust and comprehensive export licensing process anywhere.

And when it comes to success, the figures speak for themselves:

Year on year growth in defence exports…

And a 22% share of the global defence market…making us the second largest exporter of new defence products and services, behind the US.

No less crucial are the diplomatic returns we get from engaging with other countries…

…returns that make exports a pillar of our international defence engagement strategy…and, ultimately, our national security.

 

Thirdly: Thinking more internationally.

Which brings me to my third point: thinking more internationally.

Because in this increasingly interconnected world, if we’re to stay ahead of the game…

From first to last, we must pool our resources more widely, a key tenet of our white paper.

It means collaborating on science and technology, as we do with 18 nations, including, of course, the US…

…with whom we have around 100 joint research and development arrangements currently underway.

And with whom I hope we can explore the potential for more joint working under their third offset strategy.

It means developing and procuring capability together…

…multilaterally as with the A400M…

Or bilaterally…as we’ve done with the French on the FASGW missile system or with US on the Common Missile Compartment.

Sometimes, it’ll mean working as equal partners, sometimes it’ll mean differing levels of national commitment, and sometimes it’ll simply mean agreeing to buy off each other’s shelf…as we’re exploring with the US when it comes to Scout and Striker.

Each approach presents pros and cons.

But whichever one we take…I believe it’s inevitable and desirable that UK capability programmes will become increasingly international.

And, if I’m right, it’ll be vital to work hand in glove with our allies and partner nations to make this shift in a coordinated and intelligent fashion…

…Ensuring we can align acquisition, access each other’s markets…and see capability collaboration for what it really is: a force multiplier and a pooling of the market; not a mechanism for eroding national sovereignty, competition or profit.

What’s more, by adopting common equipment platforms, interfaces and standards, our armed forces will be better able to interoperate with our allies…

Making collaborations more than just the sum of their parts when meeting the onslaught of emerging and rapidly evolving threats.

 

Conclusion

So as we approach the next SDSR

…despite the challenging targets the MOD has had for the last 5 years…

…defence can enter the process from a position of much greater strength than the doomsayers suggest…

…a strength that is the legacy of 5 years of imagination, innovation and internationalism…

…offset by a regime of realism, efficiency and prudence.

UK defence is in a far, far better place today than we were 5 years ago.

I firmly believe that whoever holds the reins of power…

And of course now 20 minutes closer to the polls opening, I am increasingly positive about the prospects that this will be the party I have the honour to be part of….

But whoever has the rare privilege of joining the ministerial team in the Ministry of Defence, I am sure that if they continue on the course we have set…

As a nation, working closely in concert with our international allies, we will find opportunity in adversity…

To deliver security through defence…

…to secure the future for Britain.

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8 octobre 2014 3 08 /10 /octobre /2014 06:50
MBDA Wins £40M Order for ASRAAM Missile

 

October 8th, 2014 By MBDA - defencetalk.com

 

A number of highly skilled technology jobs have been protected across the country thanks to a £40 million contract to support the Royal Air Force’s (RAF) air-to-air missile system.

 

The contract with MBDA, which designed and manufactured the Advanced Short-Range Air-to-Air Missile (ASRAAM), will provide support infrastructure and maintenance for the weapon for the next five years.

 

The deal will sustain multiple positions at the company’s factories in Stevenage, Hertfordshire, Greater Manchester and Bedfordshire and will ensure the effectiveness of these highly agile air-to-air missiles which equip the UK’s Air Quick Reaction Alert aircraft, who are responsible for protecting UK airspace as well as on operations in the Gulf and Libya.

 

Minister for Defence Equipment, Support and Technology Philip Dunne MP said:

“This contract is more positive news for MBDA and the United Kingdom’s Complex Weapons sector. It will sustain a number of highly skilled jobs and is another example of the Ministry of Defence’s continuing commitment to British technology.

 

“ASRAAM continues to provide the Royal Air Force with crucial battle-winning capability for Within Visual Range combat missions. This contract will enable MBDA to maintain the skills required to ensure that the RAF continues to perform at its very best on operations.

 

Background Information

The contract with MBDA represents the second phase of a joint project between MOD and the company to determine whether this approach to providing in-service support could provide significant benefits over the next five years.

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8 septembre 2014 1 08 /09 /septembre /2014 11:50
£3.5 billion contract for new fighting vehicle


8 sept. 2014 defenceheadquarters

 

Minister for Defence Equipment, Support & Technology Philip Dunne talks about a new MOD contract is to deliver 589 new armoured fighting vehicles. Known as Scout specialist vehicles they will be the ‘eyes and ears’ of the British Army on the battlefields of the future.

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