EADS expands as prime contractor role in the British market

EADS European Aeronautic Defence and Space Company says it is expanding its position as a major prime contractor on the British defence market. Speaking at DSEi, which opened today in London, Stefan Zoller, President of EADS' Systems & Defence Electronics (S&DE) business unit, announced that EADS Defence Systems and Electronics (UK) Ltd (EADS UK) has been awarded the contract to supply the external communication system of the Royal Navy's new Astute class nuclear submarines.

Additionally, EADS UK as a prime contractor will modernise the British Force's communications infrastructure on the Ealkland Islands. Both contracts together are worth approximately EURO 50 million.

"These successes are part of an overall expansion strategy we are pursuing in the UK market", stated Stefan Zoller. "Based on strategic important programmes we are already running in the UK and the successful restructuring of our defence electronics business this year we will broaden the scope of our activities remarkably.''

These contract wins have been achieved amid the company's ongoing downsizing in france and Germany. While Zoller has characterised the reductions as an effort to streamline the structure of EADS on the continent, it would seem that the balance of the defence interests of the company is shifting to the more lucrative markets of the US and the UK where defence budgets are not as constrained as they are in Europe, and where the political will to improve defence capability is more positive. EADS us trying hard to develop close ties with Northrop Grumman in the US and is also well aware of the greater ease with which the UK seems to get its hands on sensitive technology from the US.

EADS reorganised its defence electronics business into a new business unit, Systems & Defence Electronics (S&DE), on 1 June 2001 combining the German and French activities of this sector in transnational integrated units. The company has adopted a strategy of enhanced international presence and is focused on growth areas of the global defence market, such as UAVs, C4ISR and Avionics as well as Naval and Air Defence C2 Systems and Sensors.

S&DE is running several important programmes in the UK, for example supplying long-range HF communications vehicles and air portable communications systems to the Royal Signals. EADS UK is leading a strong international team offering an advanced solution for the 'Falcon' tactical communications programme and participates in the 'Bowman' programme.

"With the support of FADS Group and capitalising on the Group's comprehensive product scope in the field of airborne platforms EADS UK now is set to expand its share in further sectors of the British defence market", explained the managing director of EADS UK, Bob Adams.

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