Chris Jasper/LONDON
Thomson-CSF plans to deepen its relationship with Raytheon to create a "totally new" form of transatlantic alliance. The companies are to establish an air defence venture as a first step towards what Thomson chairman Denis Ranque says will be a "systematic, long-term" partnership.
Ranque reveals that the air defence venture is being evolved with the participation of the US and French governments, which have been consulted because of the sensitive nature of the technology involved. The alliance will focus on the ground-based air defence environment, including control and command systems, radars and other infrastructure elements.
Ranque says the joint venture will be the first move towards establishing a fully-fledged alliance. "We have now agreed with Raytheon that we will start in a given field, and an agreement has been reached between the companies. We want to create a new bridge to create a body that is American in America and European in Europe. It's a totally new concept."
Though Thomson is established in North America, Ranque says US firms such as Racal Inc - a special forces radio manufacturer inherited via its purchase of the UK's Racal - are forced to operate "in isolation from home because information is so sensitive".
This, he says, "does not create a lot of synergies and value", whereas the air defence venture would be established without firewalls, and "would improve profitability". To this end, Thomson and Raytheon "are now discussing the issue with both governments", Ranque adds. "We're doing that now because it could decide the shape of the joint venture."
The companies are already partnered on two air defence contracts: the massive Air Command and Control Systems "refurbishment" for NATO, and the $290 million FLORAKO contract with Switzerland. As far as the USA is concerned, Ranque believes "air defence is a good taster. It's sensitive enough, but not too sensitive."
Lockheed Martin is Thomson's biggest US partner, while the USA accounts for 10% of its sales - set to rise to 15% with Racal. Thomson says that Europe is still foremost in its plans, its "major target" being the UK, where it is the sole 'domestic' defence rival to BAE Systems.
Ranque, meanwhile, confirms that talks are ongoing with EADS in a number of areas, including avionics, although he says radars and electronics subsidiary Detexis is not for sale. Asset sales and flotations are nevertheless expected to raise €300-500 million ($260-430 million) over the next 18 months.
Thomson and Germany's Diehl have signed contracts to found Diehl Avionik Systeme, in which Thomson-CSF Sextant will have a 49% stake. The avionics venture, based in Uberlingen and Frankfurt, will have sales of c110 million. In a further move, Avimo, in which Thomson has a stake, has agreed to buy reconnaissance, countermeasures, airborne video and data specialist W.Vinten of the UK.
• Thomson has reported a 15% rise in first half sales to €3.29 million, with operating profit up 29% to €202 million.
Source: Flight International
