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  • 8/18/2019 Jane's Defence Weekly Online - May 2004

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     COVER STORY

    ThyssenKrupp has agreed to buyHowaldtswerke-Deutsche Werft(HDW) from its owner, a USinvestment bank, in a move that willunite the German naval industry andposition it to lead European naval

    consolidation.Full Story

    Shaun Connors, editor of Jane's Military Vehicles and Logistics, looks at the most recent global developments within the logistics vehicles 

    industry in JDW's latest special report. 

    H E A D L I N E N E W S

    First sight of Chinese catamaran 

    New photographs have revealed the existence of a hitherto unknown Chinesefast-attack craft design based on a wave-piercing catamaran hullform andexhibiting a...21-May-2004

    UK plans to test high-speed TSV 

    The UK Ministry of Defence (MoD) is to fund the concept exploration and trialsof a high-speed theatre support vessel (TSV) to evaluate...21-May-2004

    ILA 2004: AGS team details timetable, while losers smoulder  

    The winning TIPS Team, comprising EADS, Northrop Grumman, Thales, Indra,Galileo Avionica and General Dynamics Canada, has set out its timetable forimplementing...21-May-2004

    ILA 2004: Germany looks beyond AGS to national intelligence needs 

    The German Ministry of Defence is planning to acquire a second batch ofNorthrop Grumman Global Hawk high-altitude, long-endurance (HALE)

    Jane's Defence Wsponsor

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    unmanned aerial vehicles...21-May-2004

    Taiwan-US ship deals stalled 

    Three years after US President George Bush pledged to do "whatever it takesto help Taiwan defend itself", two arms contracts seen as...21-May-2004

    Turkey moves to focus more on local industry 

    Turkey's decision to cancel three delayed projects, together worth more than$10 billion, has signalled a shift in Ankara's strategy to an even greateremphasis on local industrialisation (JDW 19 May).21-May-2004

    US troops in South Korea to deploy to Iraq 

    The US Department of Defense (DoD) has announced that it is moving about3,600 troops from South Korea to Iraq: the first drawdown...21-May-2004

    Turkey cancels attack helicopter, tank and drone projects 

    Turkey announced on 14 May that it is cancelling three long-delayed multi-billion-dollar programmes, including the procurement of Bell Helicopter-Textron AH-1Z King Cobra attack...14-May-2004

    Czech Gripen lease deal to be signed soon 

    The Czech Ministry of Defence (MoD) submitted a memorandum ofunderstanding (MoU) to the Czech government on 12 May for the lease of...14-May-2004

    Few surprises in Australian budget 

    The Australian government has deviated little from the recently releasedDefence Capability Plan (DCP) in its latest defence budget, with theannouncement of an additional two Wedgetail B737 airborne early-warningand control (AEW&C) aircraft the only acquisition not foreshadowed in the 10-year DCP blueprint.14-May-2004

    France confirms it will not send troops to Iraq 

    France will not send troops to Iraq even if a multinational force under a UNmandate is eventually formed to stabilise the country,...14-May-2004

    Gaza attacks force Israel to curb M113 use 

    The Israel Defence Force (IDF) has decided to limit the use of its M113armoured personnel carriers (APCs) in the Gaza Strip following...14-May-2004

    ICRC calls for contractor accountability in war  

    The International Committee of the Red Cross (ICRC) is preparing to

    implement a policy to ensure that the humanitarian standards of internationallaw are upheld by private contractors who support world armed forces in areasof conflict, according to a senior official within the organisation.14-May-2004

    MEADS clears risk-reduction hurdle with test success 

    MEADS International (MI) says it has completed the risk-reduction effort (RRE)phase for the Medium Extended Air Defence System (MEADS) with what it...14-May-2004

    Russians help India to solve SSN snags 

    India has reportedly resolved many technical problems plaguing its classifiedindigenous nuclear-powered submarine (SSN) building programme, known as

    Essentialmaintenancenotification:Saturday 22 M2004

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    the Advanced Technology Vessel (ATV)....14-May-2004

    Warnings for UK defence and procurement plans 

    Senior UK Ministry of Defence (MoD) officials have publicly acknowledged thatthe costs of operations in Afghanistan and Iraq and the difficulties of achievingsavings in the procurement process are hurting the UK's armed forces.14-May-2004

    Berlin marks first public flight for production NH90 

    The first series-production NH Industries NH90 multirole medium helicoptermade its inaugural public flight on 11 May at the ILA Berlin Air Show.The...13-May-2004

    Israel reveals Phalcon configuration aboard G550 jet 

    Elta Electronics, a subsidiary of Israel Aircraft Industries, has released the firstartist's rendering showing the configuration of the Gulfstream Aerospace G550Compact...13-May-2004

    US to maintain increased level of troops in Iraq 

    The US Department of Defense (DoD) announced on 4 May that it wouldrotate one US Army brigade and two US Marine Corps expeditionary units intoIraq during the next few months and that it was likely to maintain a troopstrength of between 135,000 and 138,000 soldiers there until 2005.07-May-2004

    US seeks balanced force, but gaps remain 

    The US Department of Defense's Office of Force Transformation, in a wide-ranging appraisal, has commended plans to transform the US armed forcesbut noted that additional areas need to be addressed, Director of ForceTransformation Arthur Cebrowski told JDW.07-May-2004

    Russian yard launches latest destroyer for China 

    The first of the two new modified Sovremenny-class destroyers being built byRussia's Severnaya Verf shipyard for the Chinese People's Liberation ArmyNavy...07-May-2004

    Two-year study could delay UK armoured vehicle project 

    The British Army is unlikely to begin receiving a new family of mediumarmoured vehicles before 2010.07-May-2004

    First flight for series Yak-130 

    The first series-configuration Yak-130 twin-seat advanced jet trainer/ lightstrike aircraft flew for the first time on 30 April at the Sokol facility...07-May-2004

    In Brief - Laser downs rocket in test 07-May-2004

    In Brief - Third Greek FAC launched 

    07-May-2004

    In Brief - EU's China arms ban stays 

    07-May-2004

    In Brief - Japan set for $725 million missile buy 

    07-May-2004

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    In Brief - Tajik troops to patrol Afghan border  

    07-May-2004

    In Brief - Lawmakers move to delay base closures 

    Members of the US House of Representatives' Armed Services Committeeapproved legislation to delay from September 2005 to mid-2007 the process ofdetermining...07-May-2004

    Silver Fox to hunt with the marines 

    The US Marine Corps will deploy four platforms of a new hand-launchedunmanned aerial vehicle (UAV) to Iraq later this month. The Silver...30-Apr-2004

    US assesses interceptor sites in Europe 

    The US is discussing with European allies the possibility of basing anti-missileinterceptors in Europe later this decade to counter long-range ballistic missilesin countries like Iran and North Korea that could threaten the Europeancontinent and eastern part of the US.30-Apr-2004

    JSF partners are 'on track' for long-term boom 

    Opportunities for industrial participation by the international partners in themulti- billion-dollar US-led F-35 Joint Strike Fighter (JSF) programme areunfolding well and are on track, despite assertions to the contrary, says thesenior industry official overseeing the aircraft's development.30-Apr-2004

    Mobile laser tracks large-calibre rocket 

    The US Army and the Israeli Ministry of Defence (MoD) on 29 April conducteda test of the Mobile Tactical High Energy Laser...30-Apr-2004

    NATO struggles to form new Afghan PRTs 

    NATO is finding it difficult to meet the goal of establishing five new provincialreconstruction teams (PRTs), the centrepiece of its planned expansion in Afghanistan, before the Istanbul NATO Summit in late June.30-Apr-2004

    Pakistan to receive US assistance 

    Pakistan is nearing agreement with the US for the supply of military equipmentthat includes fixed-wing aircraft and helicopters, according to US and...29-Apr-2004

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    HEADLINES

    Date Posted: 21-May-2004

    JANE'S DEFENCE WEEKLY - MAY 26, 2004

    German yards set to unite as HDW findsnew owner

    DAVID MULHOLLAND JDW Business Editor London 

    ThyssenKrupp has agreed to buy Howaldtswerke-Deutsche Werft (HDW)from its owner, a US investment bank, in a move that will unite theGerman naval industry and position it to lead European navalconsolidation.

    The German government, unions and media have reacted very positivelyto the agreement.

    If the deal goes through, One Equity Partners (OEP), the investment armof Chicago-based Bank One, will receive EUR240 million ($285 million)and a 25% stake in ThyssenKrupp's shipbuilding business in return forOEP's 75% stake in HDW. The cash value of the deal would only coverHDW's estimated debts. The value of the 25% stake in the ThyssenKruppshipbuilding group was not released. However, last year ThyssenKrupp'syards had a turnover of EUR970 million and the new combined businessshould have sales of around EUR2.2 billion a year.

     An OEP spokesman refused to comment except to say that the deal was a"win-win" for both companies and that future prospects were promising.

    ThyssenKrupp and OEP see the merger as laying the foundation foruniting Europe's naval yards.

    "We actively support ThyssenKrupp's strategy of becoming a leadinginternational company in the sector," said an OEP spokesman. "This is thefirst step to prepare to build up the international group in the future thatcould include French and US companies."

     A ThyssenKrupp official said that further consolidating moves could comein "two to three years, or longer". However, at this stage it is unclearwhether that would be through mergers or partnerships.

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    The tie-up would create a strong competitor to the aspirations of France'sDCN and Spain's Izar , which both see themselves as important centres of

    gravity for consolidating Europe's naval shipbuilding.

    Jean-Marie Poimboeuf, DCN's chief executive, said last November thatDCN would be interested in HDW as the Franco-German element of a

    wider industry consolidation also including Spain's Izar  and Italy's

    Fincantieri.

    HDW already boasts a strong international presence. In addition to its Kielyard, HDW owns Kockums in Sweden and Hellenic Shipyards in Greece.

    ThyssenKrupp's shipyards, which are smaller in revenues than HDW,consist of Blohm+Voss and Blohm+Voss Repair, both in Hamburg, andNordseewerke in Emden, Germany.

    The combined company, however, will still struggle in the Europeanshipbuilding market, said an industry source. He noted that the mergermay solve some internal problems, but that the larger problem of pressureon the civil side of the business will remain.

    National pride 

    The German government, which welcomed the move, had feared HDWand its sensitive technology would fall under foreign ownership. AThyssenKrupp official said that the government was very supportive of aGerman takeover of the yard.

    OEP's acquisition of HDW created national controversy about the questionof foreign ownership of German defence companies. That led to a lawprohibiting overseas entities from controlling more than a 25% stake inGerman defence companies.

    The two companies expect to complete due diligence by the end of Juneand a merger towards the end of the year.

    While the size of the new business would make it subject to review by EUCommission anti-monopoly authorities, the German government had saidit would support a national defence exclusion under Article 296 of theMaastricht Treaty if needed, according to the OEP spokesman.

    The merger will not threaten continuing co-operation with othercompanies, such as HDW's Kockums working with Northrop Grumman on

    carbon-fibre composite warships as part of the US company's bid to buildpatrol boats within the US Coast Guard's Deepwater programme.

    However, the tie-up does appear to block quiet efforts by Northrop 

    Grumman to acquire HDW's expertise in conventional submarinetechnology: HDW builds the Type 212A for the German Navy inconjunction with ThyssenKrupp's Nordseewerke and the MAN Group'sFerrostaal yard in Essen as part of the German Submarine Consortium.

    When OEP bought its 75% stake in HDW, sources told JDW  that Northrop 

    Grumman was thought to have motivated OEP to take the stake (JDW  15

    March 2002). The company is interested in acquiring state-of-the-artconventional submarine technology to supply the US government'sconventional-powered submarines that have been promised to Taiwan.

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    Northrop Grumman has also been interested in other HDW technologies,

    such as stealthy composite surface combatants. HDW officials have toldJDW  it is interested in breaking into the US market.

    US efforts to source submarines for Taiwan have been stymied by

    Chinese opposition, which has persuaded the German and Dutchgovernments to prohibit their technology from Taiwanese end use.

    US submarine builders have been seeking conventional submarinetechnology because they ceased manufacturing conventional submarines

    decades ago when the US Navy switched to an all-nuclear fleet. As aconsequence, US conventional submarine technology is obsolete.

    HDW's submarines are a particularly attractive target because of theinvestment the company has made in air-independent propulsion. Thisallows submarines to stay submerged for weeks at a time, allowing themto operate in ways previously only possible for nuclear-poweredsubmarines.

    RELATED ARTICLES: 

    'German Industry: Export drive' (JDW 29 Oct 2003)  

    'Naval shipbuilding in Europe: a case for consolidation?' (Jane'sNavy Internation al, Oct 2003)  

    HDW's shipbuilding might: the SAS Isandlwana (F 146)

    frigate for the South African Navy and the FGS U31 Type

    206A submarine for the German Navy in Kiel 

    (Source: M Nitz) 

     An aerial view of the Blohm+Voss shipyard in Hamburg,

    Germany . Blohm+Voss parent company ThyssenKrupp has

    agreed to buy HDW: a move that will consolidate almost all

    of Germany's naval industry

    (Source: Michael Nitz) 

    © 2004 Jane's Information Group 

    © 2004 Jane's Information Group. All rights reserved  | Terms of use  | Jane's Privacy Policy

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     DEFENCE EXHIBITIONS GUIDE

    Date Posted: 05-May-2004

    JANE'S DEFENCE WEEKLY

    JDW Exhibitions Online

    May 2004 

    5-8IDEE 2004Trencin, Slovak Republic

    www.idee.sk 

    6-7 

    Gulf Coast Military Exposition and Symposium 2004

    New Orleans, USA

    www.gcmexpo.org 

    6-8

     AHS International 60th Annual Forum and Technology DisplayVirginia Beach, Virginia, USA

    www.vtol.org/calendar.html#may04 

    10-132004 Small Arms Symposium & ExhibitionLas Vegas, Nevada, USA

    www.ndia.org 

    10-13US Special Operations Command Week and Advanced Planning Briefingfor Industry

    Tampa, Florida, USAwww.meetingmattersplus.com/USSCOMMain.html 

    10-16

    ILA2004 Berlin-Brandenburg International Aerospace Exhibition & 

    Conference

    Berlin-Brandenburg, Germany

    www.ila-berlin.de

    11-12EW 2004 Electronic Warfare

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    London, UK

    www.shephard.co.uk/exhib.ew_04 

    11-13 AFCEA TechNet International 2004Washington, DC, USA

    www.technet2004.org 

    15-20

    2004 Armor ConferenceFt Knox, Kentucky, USA

    www.knox.army.mil/arconf  

    16-19 Association of Old Crows Roma Symposium and ExpoRome, Italy

    www.crows.org/EVENTS/2004/ROMA/roma.htm 

    20-22World EOD Foundation International Conference & ExhibitionBangkok , Thailand

    www.eod.org 

    25-26Electronic Warfare 2004London, UK

    www.electronicwarfare2004.com 

    25-27 AFV Attack and Survivability 2004RMCS Shrivenham, UK

    www.symposiaatshrivenham.com 

    25-28CIDEX, China International Defence Electronics Exhibition

    Beijing, People's Republic of China

    www.cidexshow.com 

    26-28Ordnance, Munitions and Explosives - Test and EvaluationRMCS Shrivenham, UK

    www.symposiaatshrivenham.com 

    26-29HEMUS 2004, 6th International Exhibition of Defense EquipmentPlovdiv, Bulgaria

    www.hemusbg.org 

    June 2004 

    22nd US-UK Defense Industry SymposiumLondon, UK

    www.ndia.org 

    2-5

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  • 8/18/2019 Jane's Defence Weekly Online - May 2004

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    ane's Defence Weekly - Article

    Indo Defence 2004 Expo & ForumJakarta, Indonesia

    www.napindo.com 

    2-6The 8th International Symposium on Protection against Chemical andBiological Warfare AgentsGothenburg, Sweden

    www.cbwsymp.foi.se 

    3-4 AUSA Symposium “Space Support and Global Operations”Long Beach, California, USA

    www.ausa.org/chapweb/glc/glac/index.html 

    7-9XIth European Air Defence Symposium 2004RMCS Shrivenham, UK

    www.symposiaatshrivenham.com 

    8-10

     AFCEA Tranformation TechnetVirginia Beach, Virginia, USA 

    www.afcea.org/transformation04/ 

    8-10

     American Helicopter Society 60th Annual Forum &Technology Display 

    Baltimore, Maryland, USA

    www.vtol.org/60cfp.html 

    9-10US Naval Submarine League Annual SymposiumWashington, DC, USA

    www.navalsubleague.com  

    14-18EurosatoryParis-Nord Villepinte, France

    www.eurosatory.com 

    22-25UDT EuropeNice, France

    www.udt-europe.com 

    23-25Balt-Military-Expo, Baltic Military ShowGdansk, Poland

    www.baltmilitary.pl 

    28-29

    NATO Summit

    Istanbul, Turkey

    www;natoistanbul2004.org.tr  

    28-29

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  • 8/18/2019 Jane's Defence Weekly Online - May 2004

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    ane's Defence Weekly - Article

     American Society of Naval Engineers (ASNE) Day 2004

    Washington, DC, USA

    www.navalengineers.org/Events/ADAY2004/AD04Index.html 

    29-1July Indirect Fire 2004RMCS Shrivenham, UK

    www.symposiaatshrivenham.com 

    30-1 JulDVD 2004Millbrook, UK

    www.theevent.co.uk/exhibitor  

    July 2004 

    6-10REA 2004, Russia Expo Arms 2004

    Nizhny Tagil, Russia

    www.rearms.ru/ 

    15-16UV 2004 London

    London, UK

    www.uv2004.com 

    17 & 18Dayton Air ShowDayton, Ohio, USA

    www.usats.org 

    19-25

    Farnborough InternationalFarnborough, UK

    www.farnborough.com 

    August 2004 

    3-5 AUVSI Unmanned Systems North America 2004 Anaheim, California, USA

    www.auvsi.org/symposium/ 

    3-6

    ONR Naval-Industry R&D Partnership ConferenceWashington, DC, USA

    www.onr.navy.mil/about/conferences/rd_partner/" 

    30-2 SepMSPO, 12th International Defence Industry ExhibitionKielce, Poland

    www.mspo.pl 

    September 2004 

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  • 8/18/2019 Jane's Defence Weekly Online - May 2004

    12/76

    ane's Defence Weekly - Article

    1-3IICDESNew Delhi, India

    Email: [email protected]

    7US Naval Institute-US Marine Corps Association Forum 2004Washington, DC, USA

    www.mca-usniforum.org 

    13-15 Air Force Association Annual Symposium and ExhibitWashington, DC, USA

    www.afa.org 

    14-16Modern Day MarineQuantico, VA, USA

    www.marinemilitaryexpos.com 

    14-17IDEAS 2004, International Defence Exhibition & Seminar Karachi, Pakistan

    www.ideaspakistan.com 

    21-23

    Helitech 2004 Latin America

    Saõ Paolo, Brazil

    www.helitechlatinamerica.com 

    21-25

     Africa Aerospace & Defence

    Pretoria, South Africa

    www.aadexpo.co.za 

    22-24

    China 2004, InterAirportAsia

    Beijing, PR China

    www.interairport.com/asia 

    29-30 

    US Naval Institute 9th Annual Warfare Exposition and Symposium

    Virginia Beach, Virginia, USA

    www.usni.org/seminars/warfare/warfare.htm 

    October 2004 

    4-6Milipol Qatar 

    Doha, Qatar 

    www.milipol.com 

    5-9

    DEFENDORY 2004

    Greece

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  • 8/18/2019 Jane's Defence Weekly Online - May 2004

    13/76

    ane's Defence Weekly - Article

    www.defendory.gr  

    6-10

    Japan Aerospace 2004

    Yokohama, Japan

    www.aero-space.jp 

    17-20 

     Association of Old Crows 41st Annual International Symposium and 

    ConventionSan Diego, California, USA

    www.crows.org/ 

    18-21Infotech 2004 Conference & ExhibitionDayton, Ohio, USA

    www.afcea.org 

    19-21

    UDT Hawaii

    Hawaii, USA

    www.udt-hawaii.com 

    25-27

     AUSA Annual Meeting

    Washington, DC, USA

    www.ausa.org 

    26-28HELMOT XI (Helicopter Military Operations)Williamsburg, VA, USA

    www.vtol.org 

    25-29

    Euronaval

    Paris, France

    www.euronaval-show.com/2004 

    November 2004 

    1-7 

     Airshow China 2004

    Zhuhai, China

    www.airshow.com.cn 

    24-27

    Iran Air Show

    Kish Island, Iran

    www.iran-airshow.com 

    30-3 Dec

    Exponaval

    Valparaiso, Chile

    www.exponaval.cl 

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    Date Posted: 21-May-2004

    JANE'S DEFENCE WEEKLY - MAY 26, 2004

    First sight of Chinese catamaran

     Yihong Chang JDW Correspondent TorontoAddit ional repor t ing Richard Scott JDW Naval Editor London

    New photographs have revealed the existence of a hitherto unknownChinese fast-attack craft design based on a wave-piercing catamaranhullform and exhibiting a high degree of radar-cross-section (RCS)reduction in its topside design.

    The vessel, carrying the pennant number 2208, was observedoutside the Qiuxin shipyard following its launch in April.

    The design is characterised by a wave-piercing catamaran hullform,a centre bow to reduce the incidence of slamming and four waterjetpropulsors aft (two in each hull).

    The vessels are almost certainly made from aluminium alloy, alreadywidely used in commercial fast ferry designs.

    Furthermore, photographs show the extent to which the vessel'sdesigners have sought to reduce RCS by faceting the outer hull,bridge and topside structures and reducing external fittings.

    Also apparent are modifications to reduce the RCS of the AK-630 gun

    mounting fitted forward. The presence of other weapon and sensorsystems is less easy to discern. However, the wedge-shapedstructures aft may be housings for anti-ship missiles, while someform of electro-optical director appears to be installed above thebridge deck.

    Analysts believe that the Chinese People's Liberation Army Navy(PLAN) may be looking to introduce into service a large number ofmissile-armed fast- attack craft based on the wave-piercingcatamaran hullform adopted by unit 2208.

    Observers believe that these vessels could act as nodes in a wider

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