Carol Reed/MADRID
Spain is negotiating with European guided-weapons house Matra BAe Dynamics (MBD) to establish a new company to form the basis of an indigenous missile industry.
MBD deputy chief executive Alan Garwood says it has held "serious" talks with the Spanish Ministry of Defence and state holding group SEPI on the project. He adds that MBD will take a minority stake in the venture, with Spanish companies selected by Madrid controlling the majority.
The venture will eventually be invited to join MBD, now finalising the integration of the Alenia Marconi Systems (AMS) missile business. MBD, also in the process of recruiting Germany's LFK and targeting BGT, is itself due to be renamed to reflect its pan-European nature.
Workshare terms and partner companies in the Spanish venture are still being finalised, and will in part be determined by Spain's long term missile procurement plans, although SEPI-controlled aerospace group CASA (soon to be part of EADS) has composites expertise and is likely to be involved.
Garwood says MBD will bring "technology, development work and production into the partnership," with Spain providing funding to "structure and invest" in the company by virtue of its 10%stake in the six-nation Meteor medium-range air-to-air missile programme.
Meteor should generate orders worth up to $10 billion, with the Spanish venture promised work on both European production and export orders.
Spain also requires a new short-range air-to-air missile to arm its Boeing F/A-18 Hornets and new Eurofighter combat aircraft, and MBD will transfer technology and production to the new venture if ASRAAM is selected.
In the longer term, Spain is expected to run a competition for a stand-off cruise missile for its Eurofighters, with MBD's Storm Shadow a contender.
The new MBD - having absorbed AMS' missiles division - will employ 12,000 people, BAE Systems and EADS each controlling a 37.5% stake and Italy's Finmeccanica around 25%. It will have annual sales of £1.6-£1.7 billion ($1.5-2.55 million), challenging world number one Raytheon of the USA in revenue terms.
Source: Flight International
