Lockheed Martin has come out fighting in the battle to win a prized stake in the South Korean aerospace industry.
"We are bullish on South Korea," Robert Young, Lockheed Martin's Asia regional president, declared at the show .
The American giant is bidding with Aerospatiale Matra of France against joint Boeing-BAE Systems team to win a stake in the Korea Aerospace Industries (KAI).
KAI was formed last year from the debt ridden aerospace divisions of Samsung, Hyundai and Daewoo in a bid by the South Korean government to attract foreign investment and transform the companies into a single Western style company.
Young refuses to disclose the size of the bid, which also involves Dassault Aviation and Snecma as junior partners.
"We are hopeful," says Young. "We are already partnered with South Korean companies in the on-going KT-1 trainer and KTX-2 fighter programmes so we are the logical bid for them. We have a long-standing relationship and that stands for a lot."
Lockheed Martin already has been involved in the joint production of both aircraft at South Korean factories. The KTX-2 is a locally produced version of the Lockheed Martin F-16 Fighting Falcon.
Tuck McAtee, Lockheed Martin's vice-president for North Asia, says the company submitted a non-binding bid last September and a binding bid was prepared after completing due diligence. "The bid will be submitted in March and then KAI will make a down select after that," says McAtee.
"KAI want some cash injected, they need work packages for the civilian and defence sectors and they want technology transfer," says McAtee.
"The advantage our team brings is that we have a track record on the KTX-2. Their factory recently produced two perfect F-16s which is very rare.
"Aerospatiale Matra is soon to merge with Dasa of Germany and CASA of Spain which will create the largest aerospace company in Europe, covering commercial defence sectors," says McAtee. "We hope to provide KAI with a world class future."
The French and American team are to form a joint company called KAI Global Alliance to manage their participation in South Korea, although McAtree says the exact shareholding had yet to be determined.
McAtee downplays talk about any connection between the KAI issue and the forthcoming South Korean air force fighter contest. "The F-X selection is not the issue that will be selected by the South Korean government."
Source: Flight Daily News
