ALAN GEORGE / PARIS & PAUL LEWIS /WASHINGTON DC
Success of right-wing parties encourages defence company as sale to US Marine Corps boosts its aim to grow in USA
Thales foresees a rise in French defence spending and a refocusing of requirements after the conservative victories in recent French presidential and parliamentary elections. Meanwhile, emboldened by the selection of its TopOwl helmet- mounted display for the US Marine Corps, the France-based defence and electronics company has its sights set on tripling its US defence business over the next five years.
France is revising its military planning programme, prepared last year but not approved by parliament. The revision is likely to put greater emphasis on command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR) programmes.
Increased spending partly reflects the centre-right's traditional emphasis on defence, but it will also stem from the trend towards C4ISR in modern warfare, says Jean-Loup Picard, Thales senior vice-president strategy and development.
Picard says: "The key principle is the management of a battlefield using the best information and communication technologies, independently of the platform."
The new requirement has altered procurement philosophies, he says. "In the past, we built the platform, and built the final capability around that platform. Now, the customer defines the capability and the platform comes second."
Thales' business traditionally had three key pillars, says Picard - aerospace, defence, and information technology and services. Exploiting the overlap between them gave the company a wide technological base for the new environment. "All the elements within C4ISR generally involve a mix of technologies," says Picard, adding that a dedicated team has been established to ensure that technologies are circulated within the group.
Thales aims to boost its US presence, says Picard, and took a big step a year ago by forming an air defence joint venture with Raytheon.
Defence accounted for 28% of Thales's $1.22 billion North America turnover during the 2001 financial year, compared to 55% of the company's €10.3 billion ($10.2 billion) worldwide sales. "There is a significant opportunity for us here and we have a broad strategy to grow the defence business in the USA," says Thales North American chairman Lawrence Cavaiola.
At $344 million, defence trailed behind civil aerospace and IT and services in Thales North American's sales last year. The intention is to increase this to more than $1 billion through "partnerships and acquisitions and joint ventures", says Cavaiola.
Bell's recent selection of TopOwl for the AH-1Z/UH-1Y upgrade programme provides a major boost, with 560 systems to be procured, starting with delivery of 16 in November. US firm Kaiser will provide local support. The USMC has a potential requirement for a common helmet to equip its Bell Boeing MV-22s and Sikorsky CH-53Es.
Thales also hopes to supply elements of the Boeing-led joint tactical radio system, electronic warfare systems for the US Army and optronics for thermal sights, and build on partnerships in missile guidance, communications and sonar.
Source: Flight International
