STEWART PENNEY / LONDON
Once EC approval is secured, missile company plans alliances in the USA and further rationalisation in Europe
Europe's new missile firm MBDA intends to boost its capabilities with more mergers once it secures final approval from the European Commission for its formation with the tie-up of Matra BAe Dynamics and Alenia Marconi Systems' weapons activities.
MBDA chief operating officer designate Alan Garwood says the new company will seek strategic alliances in the USA and further rationalisation in Europe, particularly at the subsystem level.
The company continues to harbour ambitions to link with the German missile industry through a tie-up between MBDA's local affiliate LFK and the Diehl subsidiary BGT. Garwood says that earlier negotiations between MBDA and Diehl failed to reach agreement and the talks have lapsed.
A priority for MBDA subsystems mergers appears to be gaining rocket motor know-how. MBDA is the largest user of such systems in Europe and Garwood confirms: "We would like to get hold of propulsion [companies] to get a better hold on the technology."
Another target, "maybe for the future", according to Garwood, is Sweden's Saab Bofors Dynamics.
In the USA, MBDA is poised to sign non-exclusive agreements with Boeing and Lockheed Martin to join their Common Missile programme teams. The Common Missile is a US Army programme to replace current anti-armour weapons. MBDA is already teamed with the two companies on a number of other weapons programmes.
Further rationalisation moves are dependent on the European Commission accepting the view of France, Italy and the UK that as a defence deal, MBDA is outside the remit of Brussels and therefore does not require approval.
MBDA will have sales of $3 billion a year, making it the second biggest missile house after Raytheon of the USA, and ahead of Lockheed Martin.
Source: Flight International