Anticipating a growth in the activity of its South African business, Rheinmetall Waffen Munition (RWM) has teamed with its South African based subsidiary with Denel – Rheinmetall Denel Munition (RDM) to acquire the Laingsdale Engineering company of Cape Town, South Africa, previously a division of Tellumat Pty Ltd. Under the new ownership RWM will have a majority interest of 51% in the new company, with RDM holding the remaining 49% share.

The company provides precision mechanical manufacturing related to fuses, safe-and-arming devices, kinetic energy weapons and a variety of naval applications. Laingsdale Engineering has about 180 employees and had sales in FY 2009 of approximately €10 million. The bulk of Laingsdale Engineering business is currently with RDM. The company expects to see its business volume double from the current figure. “We are excited about this acquisition which will enhance and grow our business in South Africa”, said Norbert Schulze, CEO of RDM. “We have acquired a highly successful company which we have been working with for many years and with great success.” The new skills and capability base it is acquiring in precision mechanical manufacturing will enhance Rheinmetall’s current indigenous ammunition products.

The Raytheon Company has acquired Technology Associates Inc., a privately held supplier to the U.S. intelligence community, providing system engineering support for mission-critical programs. Technology Associates’ capabilities include data extraction and analysis; digital media intercept and exploitation; embedded system programming; and information assurance services. Based in Reston, Va., Technology Associates was established in 1990 and has 110 employees.

Technology Associates will become part of Raytheon’s Intelligence and Information Systems (IIS) business. Technology Associates President Preston Harrelle joins Raytheon and will continue to lead business operations while taking on a broader cyberstrategy role across the Information Security Solutions (ISS) product line. “By acquiring Technology Associates and integrating its talent and expertise into our business, we’ll further strengthen our ability to meet the evolving needs of our customers.” Lynn Dugle, president of Raytheon IIS commented.

Elbit Systems Ltd. announced today that it was awarded an approximately $56 million tank upgrade contract from a customer in Asia. The tank upgrade project will span over 24 months and include the installation of battle management systems (BMS), and optronic observation and surveillance systems. The current program is a follow-on upgrade Elbit Systems is conducting with this specific customer (the identity of the customer was not released).

Due to political implications and U.S. technology transfer limitations, Israeli companies are restricted in offering defense systems to a number of Asian countries. Among these, Azerbaijan, India, Singapore and Thailand fit the vague description provided by the company.

It was reported in the Indian media that the Indian state owned DRDO is cooperating with Elbit Systems in the development of Battlefield Management System for the Indian indigenous Arjun tank. BMS integration could follow as part of the continuous Indian upgrades of the T-72M tanks and, and, possibly with the T-90S.  Such BMS allows the tank to network with other fighting units, enabling several tanks to network with other each other, to effectively engage multiple targets. On the other hand, Azerbaijan has recently received 62 T-72 tanks from Russian military surplus. Azeri T-72s have already been updated with new fire control and remotely controlled weapon station.

On Thursday last week (Sept 30) the Pentagon awarded two competitive contracts for the delivery of advanced targeting pods for U.S. Air Force fighters. The Air Force will continue the procurement of two types of pods under the Advanced Targeting Pod – Sensors Enhancement (ATP-SE) program – the AAQ-33 Sniper from Lockheed Martin and AAQ-28(V) Litening – from Northrop Grumman and Israel’s Rafael. The total spending on the two systems over the life of the program could reach US$2.3 billion. The service is seeking to acquire an estimated 275 systems. At present, the contracts awarded to each of the two teams amount about $23 million each.

ST Aerospace has been selected to operate the Singapore Republic of Singapore Air Force’s (RSAF) training in Cazaux, France. As the prime contractor for the entire program, ST Aerospace is acquiring 12 M346 advanced trainers at the cost of S$543 million, the first is scheduled for delivery in 2012. In addition, ST Aerospace will provide systems maintenance and support while Boeing will provide ground based training as a subcontractor. ST Aerospace has been providing depot maintenance for RSAF’s A-4SU / TA-4SU fleet in Cazaux since 1999. In 2007 the company was selected by the Singapore Ministry of Defense (MinDef) to widen the scope of its maintenance program to Total Aviation Support.

African defense companies are challenging the dominant Western suppliers of mine protected armored vehicles, competing for MRAP type vehicle contracts. According to Ivor Ichikowitz, Executive Chairman of the South African Paramount Group, South Africa’s largest independent defense and aerospace contractor, African companies have emerged as technological equals to some of the world’s top manufacturers of Mine and IED Protected armored Vehicles (MPVs).

Ichikowitz referred to the recent growth in the domestic and continental demand for armored vehicles in Africa, “With African defense spending up nearly a third since the end of the Cold War, Africa is purchasing more defense and security systems. This has stimulated manufacturers, engineers and scientists to produce world-class products.”  African companies such as the Paramount Group are not only competing on an international level, with interest from governments in Africa, the Middle East and Asia, but also offering better in-country benefits for purchasers. Whereas the Western majors manufacture their equipment far from the destination market, Paramount Group takes an ‘in-country’ approach, where it establishes production facilities in regional markets. This ensures that the economic and development benefits associated with production, training and marketing help the local population, not just the shareholders in New York or London.”

“The world has finally discovered that Africa has some of the best technologies at affordable prices” said Ichikowitz.

The Paramount Group has unveiled today a new armored infantry fighting vehicle called Mbombe. According to the company, the vehicle has not yet been ordered but several potential customers are already interested, including Gabon.

BAE Systems announced today the planned acquisition of three intelligence services companies, for a total investment of almost US$300 million. The companies to be acquired are SpecTal LLC, Advanced Concepts Inc., and McClendon LLC – all part of the L-1 Identity Solutions Inc.’s (L1ID) Intelligence Services Group. Following the completion of the acquisition expected by the fourth quarter of 2010, BAE will add more than 1,000 skilled information and security employees to its workforce. This acquisition reflects its global strategy to enhance and grow its business in the area of customer support and services, which includes cyber and security as well as readiness and sustainment activities focusing on four key customer missions – intelligence and counterintelligence, homeland security, law enforcement and support to military operations. For the six months to 30 June 2010, this area of the business generated 49% of BAE Systems revenues.

Focusing on its core security activities, L1ID itself is being acquired by the French Safran group. This move is expected to be completed by the first quarter of 2011. L1ID provides Secure Credentialing Solutions, Biometric and Enterprise Access Solutions and Enrollment Services. These businesses are expected to have combined estimated Fiscal Year 2010 revenues of $486.0 million. The acquisition by Safran is expected to open international growth opportunities for L-1. According to Jean-Paul Herteman, Chief Executive Officer of Safran, the company plans to integrate L-1′s operations into its subsidiary, Morpho.

Mexico is increasing its order for Eurocopter EC725 Cougar helicopters with additional six helicopters, following an initial order for six made in March 2009. Eurocopter will supply all 12 helicopters to Mexico’s SEDENA (Secretaría de La Defensa Nacional) beginning in the second quarter of 2011. The helicopters will be used for transport and civil security missions. EC725 is the latest member of Eurocopter’s Cougar family. This multi-purpose, 11 ton class helicopter is capable of transporting 29 passengers and mission endurance of 5.30 hours.

This contract represents a further consolidation of Eurocopter’s presence in Mexico, which is managed by its Eurocopter de Mexico S.A. de C.V. subsidiary. A majority of the country’s government departments have been operating Eurocopter helicopters since 1964, which are utilized in supporting the airlift and transportation needs of the Mexican President, the Navy Secretariat, the Ministry of Defense and other users. over 350 of the company’s helicopters currently in service in this region – representing a market share of more than 50 percent. Brazil has recently ordered 50 EC-725 helicopters for its armed forces. These helicopters will also be produced by Helibras, Eurocopters’ subsidiary in Brazil.

Rockwell Collins, Inc. (NYSE: COL) forecasts revenues for 2011 to reach $4.8 to $5.0 billion, with operating margins maintained at 19.5 – 20.5%. As operating conditions continue to improve in the commercial markets, Rockwell Collins expects ‘double digit’ revenue growth in commercial air transport and business aviation. The Government Systems business segment is expected to slow in 2011 but the company sees it as a transitional year that should position it for stronger revenue growth in the years ahead. Overall, the government systems segment is expected to grow by a modest 2% in 2011. Sales of airborne solutions should grow at 3%, driven by new rotary and fix wing platforms including KC-X and CH-47. The growth potential is reduced by other programs that are winding down – including fighter jets and KC-135 GATM upgrades. The pullout of combat brigades from Iraq is also affecting the company, as with lower demand for navigation systems, while JTRS communications systems moving from development into low rate initial production. The company expects the introduction of micro DGAR to increase sales and compensate for these declines.

Defence and Security division of EADS is rebranding itself as ‘CASSIDIAN’, reflecting its ambitious mission ‘to support those who protect the world’. The new name comes from the Latin term ‘Cassida’ (helmet) and ‘meridian’, an imaginary line running north and south. The company remains a division of EADS, headed by CEO Dr. Stefan Zoller. “Our business has changed significantly in recent years. We are not two silos – one Defence and one Security, but a company that offers global protection in a wide sense. CASSIDIAN will soon be a distinguished and reputable

name for global security solutions,” said Zoller. He believes the new brand will help improve the company’s marketing its defense and security product portfolio, by establishing a clear-cut profile in the global market place, primarily in India, Brazil and the Middle East considered as major growth areas for CASSIDIAN. The company’s three business units – electronics, air systems and systems are also renamed with the new brand and logo.

The move is part of an overhaul of EADS brand identity, introduced on the 10th anniversary for EADS by CEO Louis Gallois. “This brand renovation embodies exactly the spirit of Vision 2020, our strategy for EADS’ next ten years: reinforce each of the four Divisions, give them the visibility they need to market their business and at the same time materialize the strength and unity of the Group” Gallois said. The new brand architecture has been revised for better integration within a common visual identity for the entire EADS Group and the four divisions – Airbus, Eurocopter, Defence and Security and Astrium. The new identity will be progressively implemented across the Group.