NDI HOSTS BAE SYSTEMS FRES SV INDUSTRY DAY
Thursday 28 January 2010
NDI has hosted an event with BAE Systems in Newcastle to update NDI's member companies on the progress of the new Future Rapid Effects System – Specialist Vehicles (FRES SV) programme.
The event was also designed to draw attention to the opportunities that exist for manufacturing companies in the region to become involved in the supply chain to construct the new vehicles, if BAE's bid for the contract is successful.
The new FRES SV will replace the ageing Scimitar and Scorpion vehicles, currently still being used in Afghanistan, which have been in service since the early 1970's. Enhancing the capability of these vehicles is not possible and realistically only four or five years of active service life remain. For this reason the FRES SV programme is a top priority for the Ministry of Defence (MOD) despite economic pressures and the impending Strategic Defence Review.
The first stage of the competition to supply the new vehicles, known as Recce Block 1, would see the successful bidder deliver around 600 specialist vehicles to the MOD, with a planned eventual fleet of around 1200 vehicles. Only two companies are in the running for the contract; General Dynamics with their ASCOD based design and BAE Systems with their CV90 based vehicle. It is expected that a recommendation for the successful bidder will be announced by the MOD in the middle of February.
Around 150 delegates, from companies in the North East and across the country, attended the event at the Newcastle Falcons Rugby Club stadium, to listen to senior BAE representatives talk about the FRES SV programme. Sixteen members of BAE Systems were also on-hand to talk with delegates one-on-one, to explore how the products or services of their companies could become part of the BAE's supply chain.
The importance of the event to NDI members was even more apparent when BAE explained that they intend that at least 70 per cent of the supply chain needed for FRES SV would be sourced from within the UK. BAE anticipate that this would secure around 400 BAE jobs in the UK, including 105 jobs safeguarded at their Scotswood Road factory in Newcastle, and a further 600 jobs in their UK supply chain.
It is expected that FRES SV will last until 2026 for the manufacturing phase alone, with a further 20 years expected for future support of the vehicles. This would require long-term supplier support and commitment, ensuring future UK manufacturing capability and job security. Export potential is also high with interest already being expressed by Poland, Australia and Canada.
Managing Director of NDI, Robin Fox, said 'This event has brought our member companies, many of them SMEs, into direct contact with those deciding the supply chain needs of BAE Systems, one of the world's biggest Prime Contractors for defence. The FRES SV programme will provide modern and reliable vehicles appropriate to today's battle theatre, secure UK jobs and will generate long-term revenue for the country's economy. This is why it is important that FRES SV goes ahead and just highlights the benefits and role that the defence industry can play as the UK recovers from recession.'
Please find the presentation slides for the day attached below:
For further information please contact:
Jennings Nicholson Associates
Tel: 01904 629210
Email: contact@jennings-nicholson.co.uk
