LOCKHEED MARTIN and Transfield Defence Systems are working to establish a joint-venture company to compete for defence and civil contracts in Australia and South-East Asia.

A memorandum of understanding, has already been signed, by Lockheed's Ocean, Radar and Sensor division and Transfield Australia's second largest defence contractor. The two companies hope to confirm the joint venture within three months.

The announcement of the joint venture with Lockheed Martin ends weeks of speculation in Australian capital Canberra as to the nature of the relationship developing between the two companies. While the new firm is expected to act as the focal point for key defence contracts, Transfield will continue to act as a warship builder outside the joint venture

Transfield and Lockheed Martin are discussing co-operation in major areas, including Australia's requirement for an airborne early-warning-and-control (AEW&C) aircraft and its continuing Jindalee over-the-horizon radar (JORN) programme.

Lockheed Martin is expected to offer Australia its APS-145 radar fitted to a AEW&C variant of its C-130J transport aircraft which it has recently sold to the Royal Australian Air Force. This is likely to undermine Transfield's teaming discussions with Boeing, which intends to compete with a modified 737 fitted with a dorsal-mounted side-looking radar.

Another area of interest for the planned Melbourne-based joint venture is the development of ship-borne over-the-horizon radar for the US Navy. Lockheed Martin is already a subcontractor to Telstra on the JORN programme.

Source: Flight International