Page 12 - Australian Defence Magazine June 2022

12 NEWS REVIEW INDUSTRY UPDATE
JUNE 2022 | WWW.AUSTRALIANDEFENCE.COM.AU
BAE SYSTEMS SECURES SUB-ASSEMBLY EXPORT WORK FOR ESSM
BAE Systems has secured a $50 million export contract to deliver critical hardware and soft- ware sub-assemblies into the global Evolved Sea Sparrow Missile (ESSM) program.
BAE Systems and an expanded network of Australian industry partners will deliver critical sub-assemblies into Block 2 of the ESSM program under a new three-year full rate production contract with Raythe- on in the United States.
BAE Systems Australia is the Australian industry lead in the NATO ESSM Con- sortium which oversees the program of up to 12 nations including the US, Australia, Canada and Norway.
BAE Systems Australia has been involved with the ESSM program from the com- mencement of the Engineering & Manufac- turing Development phase in the mid 1990’s through to Full Rate Production of the Block 1 missile, continuing its support on Block 2 development commencing in 2015.
The company will deliver a range of sub- assemblies including the missile’s thrust vector controller, aerodynamic control fins, fuselage and internal structure elements, te- lemetry data transmitting systems as well as sophisticated pitch over autopilot algorithms.
The initial contract award covers the first three years of full rate production at a base value of more than $50 million and up to $40 million in quantity based options.
The Block 2 contract will also secure an enduring workforce of 35 engineers and technicians and establish a significant or- der book for future full rate production.
BAE Systems Australia says it contin- ues to work with Raytheon to achieve ad- ditional Australian industry work share,
including the upgrade through redesign of existing Side Looking Sub-System.
Up to 33 Australian SMEs including RUAG Australia, Ronson Gears and As- tute Electronics will manufacture and supply parts into BAE Systems’ manu- facturing facilities at Edinburgh Parks.
“BAE Systems Australia is proud to con-
LEFT: HMAS Ballarat conducts an Evolved Sea Sparrow Missile firing at sea.
tinue its role in the ESSM program which ensures the protection of naval fleets around the world,” BAE Systems Australia Chief Executive, Ben Hudson, said.
“This contract, alongside our Prime Contractor role on the Nulka Active Missile Decoy, continues the important work undertaken by our employees and our trusted industry partners across Australia which have been delivering guided weapons capability into domestic and export programs for decades.
“An established sovereign design and manufacturing capability and network of industry suppliers means we are ready today to extend delivery into more guided weapons programs under the Common- wealth’s Guided Weapons and Explosive Ordnance Enterprise.”
XTEK SECURES $56.3M IN NEW BODY ARMOUR ORDERS
EWEN LEVICK | MELBOURNE
IN late May XTEK received two orders for its body armour products that are together worth $56.3 million.
The first order, worth $9.5 million, is for the ‘rapid supply’ of HighCom body armour to an ‘undisclosed regional cus- tomer’. CEO Scott Basham said the prod- uct will come out of existing inventory, enabling the company to respond to the client’s order at little to no notice.
The second order, worth $46.8 million, is for the supply of around 30,000 body ar- mour kits to an ‘undisclosed international customer’.
Interestingly, the contract was condi- tional on pre-payment of the entire $46.8
RIGHT: The company’s logistics team is working to secure the raw materials necessary for the order.
million (US$33.21 million) – an unusual step that suggests the company perceived a great degree of risk in invoicing the cus- tomer after delivery.
XTEK’s body armour has previously been sent to Ukraine, according to an April report in the Weekend Australian.
“XTEK can delivery 40 per cent of the order volume for the international cus- tomer before the end of June,” Basham said to ADM. “We’re working overtime to manufacture 2000 plates and 500 helmets per day, with two ten hour shifts taking place five days per week at our factory in Columbus, Ohio.”
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