Andrew Doyle/MUNICH
European aerospace consolidation seems about to embrace Swedish defence manufacturer Celsius, which is weighing its options amid reports that three major firms are considering launching take-over bids.
"Celsius is at the forefront of discussions on restructuring of the European defence industry because we lead the world in some niche markets," says the company.
Celsius declines to comment on Swedish press reports that Raytheon, DaimlerChrysler Aerospace (Dasa) and UK armoured vehicle maker Alvis are keen to buy all or part of the publicly listed company, saying only that it is talking to "several companies about several solutions".
Raytheon does not deny having an interest in Celsius but describes the reports as "speculative".
The Swedish firm, which employs 11,000 people, already has a joint venture with Dasa through its Bofors missiles subsidiary for the Taurus stand-off missile programme, and a tie-up with France's Giatin the artillery market. Talks are also under way with Germany's HDW over a merchant shipping venture.
Celsius recently concluded a deal with another Swedish company - TietoEnator - to merge its Aerotech subsidiary with the latter's defence-related operations in Sweden.
The new company will be 57%-owned by Celsius, with TietoEnator holding the rest. It is due to be formally established at the beginning of next year.
The pair say the tie-up stems from the demands of their principal customer, the Swedish Defence Force, for "total solutions" to meet defence requirements. "Given the situation, it was entirely natural that we should come up with collaboration as the best solution," they add. Celsius confirms that, in terms of other possible joint ventures, "more is coming up".
Defence accounted for about two-thirds of Celsius group sales in 1998,which totalled SKr14.3 billion ($1.74 billion), and includes products such as smart weapons and fire control systems. The company is also a member of the JAS industrial consortium, which produces the Gripen fighter, and is Sweden's largest provider of military aircraft maintenance services.
Celsius Commercial Aviation Services is primarily active in the USA, carrying out airframe, engine and component maintenance and testing. Last year it acquired US company Hawker Pacific.
Source: Flight International
