NETHERLANDS
RIVALRY -- ADATS STILL IN THE RUNNING
Thomson CSF's Crotale missile system has not been summarily selected by the
Dutch government. Contrary to a recent Defence News report which states
that "the Dutch government rejected the Oerlikon-Martin Marietta produced
ADATS in favour of the French built Crotale", The Wednesday Report has
learned that no such decision has been taken by the Netherlands' government
and that the entire project is "on hold". The Royal Netherlands Air Force
has been seeking a solution to its requirement for a missile component
to contribute to the defence of Dutch air fields.
Considerable
controversy surrounded a recommendation in favour of the Crotale NG
(New Generation) system made to the last Dutch Parliament by the former
state secretary for defence (Aan de staatssecretaris van Defensie) Mr.
J. Van Houwelingen who himself had been the centre of some controversy
which suggested a preset agenda in the selection process. Fortuitously,
the attempts of Mr. Van Houwelingen and one Mr. Bolkestein (a cabinet minister)
to ramrod the Crotale NG bid were blocked. The Dutch parliamentary committee
on defence scornfully rejected his recommendation and demanded attention
to the failure of the Royal Netherlands Air Force, the customer, to acquire
and evaluate test results from the U.S. Forward Area Air Defence (FAAD)
competition in which the Oerlikon Aerospace Inc. ADATS was selected in
1987 over the French contender.
The Dutch parliament was dissolved in July of this year preceding an election
which took place in September. Mr. Van Houwelingen has not returned to
his post and the government has yet to deal with the air defence acquisition
project other than to put it on hold along with several other major capital
acquisition projects. As a result of the concerns of the Dutch parliamentary
defence committee and the disruptive effect of the September election,
there has never been a cabinet selection and the project today is, according
to Netherlands embassy officials, awaiting further evaluation.
Says Colonel Jan Zijlstra, the Dutch defence attache at the Royal Netherlands Embassy
in Ottawa, "a new state secretary of defence has been appointed", and as
one of the first activities in his new post, made an immediate request
to the United States government for the most current test results available
from the U.S. Army comprehensive ADATS evaluation. Colonel Zijlstra suggests
that "it will be four or five months before the new government begins to
deal with defence matters", leaving one to believe that the whole matter
of a Dutch air defence missile selection is far from concluded. Nonetheless,
it is equally accurate to say, as stated by an official of Thomson CSF
to The Wednesday Report, "It may not be conclusive, but,
Crotale is looking good in the Dutch competition."
The Wednesday Report has acquired a copy of a letter
from the clerk of the Dutch parliament's defence committee, directed to
the state secretary of defence on November 1. It instructs the state secretary
to reevaluate the missile system competition, this time using ADATS evaluation
data obtained from the United States Army. The new parliamentary committee
completely rejects Van Houwelingen's premature recommendation of the Crotale
NG system saying that, "(translation) We have not been sufficiently informed
about the merits of both systems, in this case ADATS especially."
In the same letter, the committee's clerk, Mr. A. J. B. Hubert unequivocally
states that, "(translation) The committee has concluded that the subject
is to be designated 'controversial'." Not only did the evaluation team
fail to acquire data from the U.S. Army, but, when offered to the Royal
Netherlands Air Force by the defence attache at the American Embassy in
the Netherlands, the FAADS test data was rejected as "irrelevant". Although
the committee has made attempts to keep the controversy under wraps, an
article appeared in the November 9 edition of the Dutch defence publication,
Defensiekrant, which clearly spells out the nature of the potential scandal.
In the realm of potential disparagement, Canada's government too has had its
share of notoriety of a less serious nature which has imposed a hindrance
on ADATS in the Dutch deal. The Wednesday Report has learned that it is
not beyond the scope of the Dutch competition for an antagonist to make
gratuitous uncomplimentary statements to media persons and others about
the recent PMO LLAD foot-shooting exercise of the Department of National
Defence -- competitor's insinuation intended, of course, to disparage the
ADATS Dutch bid of twelve to twenty, $35 million systems. Some have illegitimately
implied that our fetish for the 'public-hanging' of nepotists and our preoccupation
for fabricating bogus impeachment dramas should be misconstrued as a punitive
measure resulting from exhaustive criminal investigation into the original
LLAD evaluation process. As Canadians are intensely aware, nothing
could be further from the truth. But not all nations are so adequately
familiar, as are Canadians, with the occasional propensity of some of our
bureaucrats and politicians to unwittingly blast holes in their own feet
with sizable calibre firepower. According to Dutch official sources however,
the dimensions of any negative impact have been minimized by the great
distances between the two countries and because there is a new Dutch cabinet
in place the topic is temporarily dormant.
Other sources indicate that it is likely that the United States Army will indeed
be forthcoming with ADATS test data to the Royal Netherlands Air Force
because of the Army's stated concerns about commonality and interoperability
of NATO defence equipment and its own continued preference for the ADATS
system over the French contender. About timing of a final Royal Netherlands
Government decision on the air defence contract, Colonel Jan Zijlstra believes
that the matter will not see an early resolution and the final deliberations
could be put off until the spring of 1990. Oerlikon Aerospace Inc. officials
were reluctant to comment on the Dutch situation other than to say that
the matter is still open, they are very much in the running, and that in
their view, "an announcement is not expected in the near term".
DUAL ADATS PROJECTS CREATE DEARTH OF SPARES
Meanwhile, in North American circles, and as if there are not enough rivals for
the modernistic entree into the air defence missile business, an emerging
round of competitive criticism has ignored the usual early spares problem
calling the ADATS system 'unreliable' and encouraging reputable weekly
defence journals to print such misconceptions. A recent rash of tests conducted
on the ADATS system has left Oerlikon Aerospace Inc. and its numerous suppliers
scrambling to keep a long list of system spares available to two major
users and a number of potential customers. Tests have been ongoing at Fort
Hunter-Liggett, California and Camp Grailing, Michigan (see The Wednesday
Report, November 22, "ADATS Gets Top Marks in FAAD Foul Weather
Tests"), while at the same time, evaluations of the system are being conducted
in other parts of the world. Filling the needs of two committed customers,
both with a high priority requirement, has proven to be tough. Says one
Oerlikon official, "Yes. Keeping up with the requirement for spares is
tough at first. We are meeting their needs. We may be working well into
our sleeping hours, but, we are meeting our customers' needs."
After years of development and hundreds of millions of dollars invested, Oerlikon
quite suddenly, in quick succession, sold its newly developed ADATS system
to two North American buyers, Canada and the United States. Each customer
has been anxious to take delivery of the product and either put it into
service, or, as in the case of the U.S. Army, continue testing and refinements
to suit its specifications. Although the U.S. project has yet to enter
full-scale production, the Army's early requirements have resulted in a
parallel delivery schedule to Canada's, one atop the other. The demand
for spares has been unusually high at a time when the contractor, now in
the early production phase, along with a myriad of suppliers, is facing
all of the usual production start-up problems and the stresses of an ambitious
and successful sales effort.
Mercifully, the two customers use many components common to both. The U.S. ADATS
-- nicknamed 'Linebacker' -- is mounted on an M3A2 Bradley fighting vehicle
chassis and, except for minor details, is identical to the Canadian Forces'
missile component of the Low Level Air Defence (LLAD) system mounted on
an M113A2 APC. ADATS forms the Line Of-Sight Forward-Heavy (LOS-FH) component
of the U.S. Army's layered divisional Forward Area Air Defence (FAAD) structure.
"It doesn't matter if your mean time between failure is unbelievably good, if you
don't have a spare available right then and there when a part does fail,
you will be judged as unreliable", commented a Canadian Forces LLAD specialist.
The "unfairness in this rumour," we were told, "is that these two North
American companies (Oerlikon and Martin Marietta), have a tall order to
fill and are doing a splendid job." Those companies which are spreading
tales of unreliability because of a typical early spares problem know full
well what the real situation is. They're sore losers.
NORTHERN TELECOM WITHDRAWS FROM TCCCS' IRIS COMPETITION
Northern Telecom, one of seven potential bidders to the $800 million Tactical
Command Control and Communication System's (TCCCS) Integrated Radio and
Intercommunication System (IRIS) has withdrawn from TCCCS leaving Canadian
Marconi Company, its leading partner in the consortium, in the cold. Jack
Coffell, a spokesperson for Marconi' defence electronics operations, was
reluctant to comment other than to say that, "We have been talking to some
other people." For certain, Marconi is not talking about current speculation
that the firm may join a late-comer, General Dynamics in an IRIS bid.
Rumours about General Dynamics Electronics Division (GDE) possible
participation in the IRIS competition are prolific. In one scenario, it
has been suggested by a knowledgeable source to The Wednesday Report
that British Columbia Telephone (BCTEL) may be willing to sell the name
of the now defunct Microtel to Lavalin. Lavalin may then become the prime
contractor on a TCCCS submission with an IRIS bidding team that includes
Lavalin, Fenco, Marconi and General Dynamics among others to offer the
Single Channel Group and Airborne Radio System (SINCGARS) manufactured
by GD's Electronics Division and already sold as a second source in May
of 1988 to the U.S. Army. The SINCGARS is rumoured to be a serious threat
to all comers as the potential front runner in the IRIS competition.
The withdrawal of Northern Telecom has set the 'cat amongst the pigeons' with respect
to the remaining six contenders, none of whom, with the exclusive exception
of the Garrett Canada team, are particularly active in preparing a bid
solution. Some speculation exists that there may be other contenders withdrawing
or deciding upon a 'no-bid' response to the RFP at this very early stage.
Meanwhile, Garrett Canada has been fortifying its position by adding significant
new team members. Garrett Canada is expected to announce that it is being
joined by Oerlikon Aerospace Inc. of Saint-Jean-sur-Richelieu, as well
as another company said to be from western Canada. Additional newsworthy
developments are expected from that group which appears to be the most
active at present. The IRIS Request for Proposal (RFP) was issued by the
TCCCS Project Management Office (PMO) on October 27. Bids are expected
to be submitted within six months of that date and a contract should be
awarded in June 1991.
PARLIAMENT
SEEKS INPUT: WHAT TECHNOLOGIES SHOULD GOVT. FUND?
The Standing Committee on Industry, Science and Technology, Regional and Northern
Development urges Canada's Aerospace and Defence Industries to participate
in the strategy development process which has been initiated by The House
of Commons. The committee invites organizations or individuals wishing
to contribute to submit a brief in english, french or both official languages.
Submissions should address one or more of the following topics: What technologies
are essential to Canada's future and how should their development be promoted?
What support should the federal government provide for basic and applied
research? How can the education system for Science and Technology be strengthened?
How can the commercialization of Canadian R & D be promoted? How can
science and technology promote Regional Development? How can science and
technology be used for environmentally sound industrial development?
Submissions must be received by January 26, 1990. The Committee may, at its discretion,
invite some of the submitters to appear at public hearings. The Committee
feels that any input will aid in the development of a valuable and useful
national strategy. Address briefs to: The Clerk, Standing Committee on
Industry, Science and Technology, Regional and Northern Development, Room
603, Wellington Building, Ottawa, ON, K1A 0A6, Tel: (613) 992-6312, Fax:
(613) 996-1626
CANADA SIGNS MILITARY AGREEMENT WITH SOVIETS
An agreement was signed last week between Canada and the U.S.S.R which provides
for the two country's first military exchange programme. Under the agreement,
both signatories agree to host reciprocal defence related visits by delegations
from each nation. The goal of the agreement is to reduce tensions by nurturing
understanding between the two defence forces and by encouraging mutual
understanding and peaceful competition.
HONORARY RESERVE COLONELS MEET IN OTTAWA
More than 200 of the total 250 honorary Reserve Colonels gathered for their biennial
meeting held at Ottawa's National Conference Centre on November 17 and
18. The prestigious group of Colonels and Lieutenant-Colonels represent
158 Army Reserve units (Militia), Air Reserve units and Communication Reserve
units. The list of honorary Colonels is comprised of highly regarded professionals,
business people and government officials who represent various occupations
across the country. Among them are: a judge of the Supreme Court of Canada,
doctors, lawyers, provincial Lieutenant-Governors, publishers, and other
persons influential in their own field and community.
General A. John G. D. de Chastelain, Chief of the Defence Staff addressed the
gathering, outlining the Reserve Force Development Project; the reasons
for its creation; and its overall importance. "In studying what resources
we would require to meet our commitments it was concluded that the Canadian
Forces would have to be able to field 180,000 personnel. But even with
the most optimistic of budgets, we could never hope to retain a regular
force of that size. Only one solution existed: to revitalize the reserves
and make the necessary adjustments that could lead to an operationally
effective total force. The identification of the requirement to revitalize
the reserves gave rise to the Reserve Force Development Project."
The keynote address was delivered by the Honorable Mary Collins, Associate Minister
of National Defence. Collins, who spoke as eloquently and knowledgeably
as ever, opened her address by stressing the importance of the group's
role. "Your role as guides, philosophers and friends becomes increasingly
important as fewer and fewer active members of your regiments have followed
the colours to war. Your task will be made easier, I think, by the initiatives
that General de Chastelain spoke of earlier, (Total Force Structure) and
that General Foster and his impressive supporting cast will brief you about
over the next two days. These initiatives should do a lot to raise the
spirit of the Militia and to provide them with a sense of continuing purpose."
The President of the Canadian Armed Forces Council of Honorary Colonels, Major-General
John J. Dunn described the honorary colonels as "the guardians of regimental
traditions -- their duties and functions are mostly representational and
advisory in regimental matters and in the promotion of the identity and
military values of the unit." He also added, "They do not intervene in
the military operations of their units." The century old tradition of designating
honorary colonels has grown to become standard practice for all reserve
units and has continued to provide a strong source of support for the Canadian
reserves.
RESERVE UNITS TO GET NEW COMPUTERIZED PAY SYSTEM
The real morale booster at the recent gathering of honorary Colonels came from
Associate Defence Minister Mary Collins when she surprised the gathering
with an announcement which dealt with a long term, fundamental problem
plaguing reserve unit commanders for years. "I am pleased to announce today",
she said, "that we have just received approval from the Treasury Board
to acquire a $15.8 million automated pay system for our reserves both in
Canada and Europe. At present, the processing system consists of a manual
record method at the unit level. By providing microcomputers to the reserve
units themselves, attendance records will be easy to update on a twice
monthly basis. Through this automation, I hope we can combat some of the
dissatisfaction and high attrition." Another item raised in her speech
might be considered newsworthy to many unit commanders who have for years
felt ignored in the pre-Total Force Structure days: Collins declared, "The
important thing is, we're listening."
CANADIAN TOWED ARRAY SONAR SYSTEM NEARING CONTRACT AWARD
Computing Devices Company (CDC) of Kanata, Ontario is entering the final stage
of negotiations for an $80 million contract to supply Maritime Command
(MARCOM) with the Canadian Towed Array Sonar System (CANTASS) for the twelve
Canadian Patrol Frigates (CPF), HMCS Nipigon and HMCS Annapolis. CANTASS
began as a study initiated by Defence Research Establishment Atlantic (DREA)
in 1976. DREA designed a system which was built to commercial specifications
by Motorola Limited of Toronto, Ontario. It was further developed by CDC,
reduced in size and rebuilt to military specifications. In 1984, an experimental
development model of CANTASS was deployed on HMCS Fraser. In 1987, a preproduction
prototype designated SQR-501 was deployed on HMCS Annapolis where it is
still under test today. CDC first submitted its contract proposal in October.
The Canadian towed array will be used to detect and classify submarines at extremely
long range. Deployed on the flanks, stern and far in advance of a convoy
or task group, the system would establish an 'area of probability' for
lurking enemy submarines. A shipborne ASW aircraft such as the Sea King
or the EH101 helicopter would fly to the identified zone, and using dipping
sonar, pinpoint, and in wartime, destroy or aid a warship in destroying
the enemy submarine. As a passive sonar system, the SQR-501 is towed behind
an ASW vessel on an armoured cable, listening for acoustic signals which
can easily be identified by sonar operators based on a NATO data base 'library'
of known vessels and their unique acoustic signature. CANTASS's secondary
mission will be to gather acoustic data, for the NATO data base, on new
vessels and their signatures and record changes to known vessels as they
are periodically modified and repaired thus altering their acoustic signature.
According to Sid Jorna, CDC's CANTASS Programme Manager, the system is
"a step forward for NATO ASW activities". The SQR-501 will be able to gather
data and track submarines at much greater ranges than older active (pinging)
sonar systems. It will do its listening with hydrophones in an SQR-19 acoustic
tail assembly supplied by Gould, a U.S. firm owned by Martin Marietta of
Florida.
The heart of the system is the AN-UYS-501 high speed processor, an indigenous
Canadian development. The processor is considered to be a significant breakthrough
in signal processing rates, able to analyze data and simultaneously track
multiple targets faster than any other processor in existence. The SQR-501
is not only acknowledged by U.S. naval personnel to be better than even
the SQR-19's processing system, it is cheaper as well. As a result, CDC
is looking at the export market for its system. CANTASS will be backed
up by the SQS-510 active sonar which will be used for close support and
ship defence.
In addition to its contract negotiations, CDC is examining possible subcontractors
and is in consultation with Western Economic Diversification Canada and the
Atlantic Canada Opportunities Agency to work out a regional development
aspect of the contract. While manufacturing will take place at CDC's facility
in Kanata, Ted Francis of CDC states that "we have a lot of subcontracting
to do." The firm will soon invite potential suppliers to compete for an
assortment of CANTASS-related subcontracts. CDC expects a DND contract
award by March or April 1990 and first deployment of CANTASS by 1993.
BV-206 NTV PROJECT GETS PROD FROM ACTION-ORIENTED ALBERTA FIRM
Lack of activity on Mobile Command's Northern Terrain Vehicle (NTV) acquisition
programme has prompted Hagglunds Foremost Inc. of Calgary, Alberta to issue
a discussion paper in the hope of generating political support for the
project. In July 1988, DND approved an acquisition of 820 Swedish BV-206
northern terrain vehicles to be used for territorial defence tasks. The
same fiberglass hulled, rubber tracked over-snow vehicles was successfully
used by the Canadian Air Sea Transportable (CAST) Brigade.
Hagglunds Foremost Inc. (HF) was formed in February 1989 as a joint venture between
Hagglunds Vehicle AB of Sweden, manufacturer of the BV-206, and Canadian
Foremost Ltd. of Calgary, Alberta to produce the vehicle in Canada. By
early 1989, the firm had actually started converting Swedish technical
drawings to Canadian standards and had sent out a number of information
packages to potential subcontractors in expectation of a contract award
by March 1990. Then came the April 1989 budget cuts. The NTV programme
was reduced by half and delayed indefinitely. The company began to cut
its staff. Since April the project has remained frozen. An increasingly
uncertain HF is awaiting a contract to begin project definition and the
NTV Project Management Office (PMO) is waiting for funding to proceed with
a Canadianization study to determine which Canadian parts can be used with
the BV-206. HF, on its own initiative, issued its paper.
According to Shari Pusch of Canadian Foremost Ltd., the discussion paper was
prepared to update HF's internal management staff, its Board of Directors
and any concerned subcontractors. The company also seeks political support.
The document reminds its readers that the NTV meets Mobile Command's requirement
for a vehicle which can traverse difficult terrain and that the BV-206's
low ground pressure minimizes risk of damage to the fragile northern ecology.
The paper stresses western industrial diversity for the benefit of any
politicians who need to be reminded of this well known political and regional
development imperative of the current government.
While the company is conducting its private sector briefings, the NTV PMO is
in a continual briefing process of its own, keeping senior DND decision
makers informed. An Interdepartmental Senior Review Board (ISRB) is scheduled
for today, November 29, at which representatives from DND, DSS and regional
development departments will be briefed on project status. There are bright
spots to the otherwise irritating situation which are keeping HF guardedly
optimistic. DND is experimenting with an air droppable BV prototype which
shows promise. Discussions between Hagglunds AB and Canadian Foremost Ltd.
may result in HF producing BV-206s in Calgary for the U.S. Army. At present
the U.S. buys its BV-206s directly from Hagglunds AB in Sweden. Lastly,
the HF paper argues that when an NTV contract is finally awarded, there
will be a high degree of Canadian content involved. Svante Andersson, Hagglund's
representative in Ottawa, states that as much as 60 percent of the NTV
may be made up of Canadian parts.
WESTLAND HAVING DIFFICULTIES WITH U.K. ORDERS
There is fresh speculation about the future of U.K. helicopter builder Westland.
It follows two recent press reports which suggested that the U.K. Ministry of Defence
was not satisfied with progress on the naval EH101 Merlin and that its
Chief of Defence Procurement Sir Peter Levene had assumed personal responsibility
for overseeing the project. Officially, the Ministry line is that no order
will be placed until a maximum contract price can be agreed. It had believed
that the process would be complete by the year's end. However, European
press reports indicate that there may also be misgivings over the development
and integration of mission systems which will be the subject of a separate
contract on which Westland is bidding against other leading contractors.
In the meantime there are suggestions that the initial U.K. order will be
for only fifty aircraft instead of the seventy-four hitherto expected.
Westland denies that the programme is in difficulties. It claims to have
pulled back a year of the initial two-years delay and that the programme
is still being managed in precisely the same way as before. However, it
has been lobbying hard and Westminster undercurrents indicate that there
are now widespread doubts that the company will get the order it expected
from the Royal Air Force for a further twenty-five EH101s for the battlefield
mobility role. Some sources believe that the RAF would prefer additional
Chinooks for this task. For its part, Westland seems to accept that the
extra aircraft are in jeopardy and having recently demonstrated its version
of the Black Hawk with weapons integrated, may be hoping for a decision
to configure the Army's 24 Brigade for an air assault role which might
make the Black Hawk a more obvious choice.
Meanwhile Westland is feeling the effects of delays on orders for Black Hawks for
Saudi Arabia. The high profile Al-Yammamah contract on which British Aerospace
leads on behalf of the U.K. government is reported to be in deep trouble
following a slump in oil prices. The U.K. government is now trying to assemble
a financing package to compensate for the deficit likely to arise on the
400,000 barrels per day oil offset. Sources suggest that the Saudis would
need to increase the offset commitment by around 25 percent to keep the
15 billion (sterling) package on course. Westland is expected to provide
68 Black Hawks as part of the deal, and without the financing it is likely
that loans from U.K. banks backed by appropriate government guarantees
can restore the balance. There is a danger that loans to the companies
- and in particular to either Westland or British Aerospace - could, irrespective
of the reasons, be hard to handle politically. Westland is also reported
to be anxious to close on deals for Black Hawks for Kuwait and the United
Arab Emirates.
UPDATE: UNITED KINGDOM TANK PROJECT
The U.K. Main Battle Tank (MBT) competition rumbles on. Vickers maintains that
it is on course to demonstrate its Challenger 2 as required at the end
of next year, but, next week will see a series of presentations to potential
subcontractors in which General Dynamics will outline the type of offset
deal that it hopes to offer for its M1 Abrams. General Dynamics has managed
to keep a high profile in the competition in spite of an obvious preference
for the home-grown Challenger 2.
OLIVIER LEGALL JOINS CANADIAN SUBSIDIARY ACI
Assistant Chief of Programming for ERYX at Aerospatiale's Tactical Missiles Division,
Mr. Olivier Legall, will join the company's Canadian subsidiary (ACI). Aerospatiale
hopes that this decision will emphasize the importance it attaches to the
ERYX programme and the cooperation it enjoys with Canadian industry. Mr.
Legall, who has been closely associated with the programme right from its
birth to its development in Canada, will join the newly opened company
in late December of this year. He will be in charge of the ERYX industrial
cooperation between France and Canada and ensure readiness for the industrialization
agreements while awaiting a favourable announcement from the Canadian authorities.
The Canadian Government has not yet made a decision regarding the ERYX
programme, the only one in the defence field at present between France
and Canada.
U.S. AIR FORCE SR-71 BLACKBIRD RETIRES
Last Wednesday, the original U.S. stealth spy plane, the Lockheed-built, SR-71 Blackbird
officially ended its 24 years of operational duty as a result of a $200
million (U.S.) deletion from the Bush Administration's defence budget.
Out of some 30 aircraft built there are only ten remaining in service with
the 9th Strategic Reconnaissance Wing at Beale AFB, California, most of
which will be donated or sold to museums. The aircraft have been based
at Beale with several detached to airfields in Mildenhall, England and
Kadena Air Base in Okinawa, Japan. The SR-71 is still the holder of numerous
aviation records and although the complete performance specifications are
classified by the U.S. Air Force, it is said to have a ceiling of greater
than 85,000 feet and flies at speeds in excess of Mach 3. The aircraft
served as a high-altitude reconnaissance aircraft capable of reading a
newspaper headline from a 15 mile altitude. Satellites and the older and
slower U-2 will now fulfill the reconnaissance tasks of the Blackbird.
MENASCO GETS BOEING'S "SUPPLIER OF THE YEAR AWARD"
Boeing Commercial Airplanes presented Menasco Aerospace Ltd., of Oakville,
Ontario with one of seven "Supplier of the Year" awards in Seattle last
Wednesday. Menasco Aerospace was one of more than 3,500 companies around
the world vying for the title. A division of Colt Industries of New York,
Menasco Aerospace manufactures the main landing gear for the Boeing 737
and main landing gear components for the Boeing 757. Consistent quality
in manufacturing close-tolerance components for Boeing has resulted in
the company receiving the award in each of the past two consecutive years.
The other winners were in the U.S. and one in Japan. The President of Menasco
Aerospace Ltd., Mr. John Cybulski proudly stated, "Menasco is one of the
two largest suppliers to Boeing in Canada and we feel the award proves
that the Canadian aerospace industry can compete with the rest of the world."
He told The Wednesday Report that Menasco will share a substantial
portion of the $500 million worth of goods and services that U.S.-based
Boeing divisions will purchase from Canadian firms in 1989.
$31 MILLION PLANT EXPANSION FOR BOEING WINNIPEG
A $1.5 million, computer-controlled, composite materials cutting and trim system
is the heart of a $31 million plant expansion opening next July at Boeing
Canada Technology Ltd., Winnipeg Division. Gordon Sampson, Boeing Canada
President and General Manager of the Winnipeg operation plans to maintain
the division reputation as the foremost composite facility in Canada. The
new composite cutting machine will be integrated with the firm's existing
CAD/CAM system. Its unique features include an ultrasonic, 20,000 cycle
per second cutting head; a large 6 feet by 48 feet work surface; and the
capacity to cut multi-layered composite materials. Coupled with a new,
three axis, trim machine for drilling and cutting patterns, as well as
other new equipment, the expansion will allow the division to respond to
the growing demand for Boeing's jet transports. Much of the work done by
the Winnipeg operation consists of manufacturing aircraft parts for parent
company, Boeing Commercial Airplanes of Seattle, Washington.
CANADIAN MARCONI COMPANY AWARDED FOR EXCELLENCE
Hollandse Signaalapparaten B.V. of the Netherlands has presented Canadian Marconi
Company (CMC) with an award of excellence for its superior quality and
on-time delivery of five pairs of Signaal Tracking and Illuminating Radar
(STIR) systems for the Canadian Patrol Frigate. CMC assembled, integrated
and tested the Signaal fire control radar systems. The company recently
received additional orders worth $5.1 million to coproduce six pairs of
STIR systems for the second batch of frigates.
JOHN SIMONS NEW CMC PRESIDENT
Replacing recently retired Philip Wheatley as President and Chief Executive Officer
is John H. Simons, Canadian Marconi's former Executive Vice President.
Prior to 1988, Simons was the Vice President of CMC's Electronics Group.
He graduated from McGill University in 1963 with a Master of Engineering
degree and in 1977 with a Master of Business Administration. Simons is
a former chairman of the Aerospace Industries Association of Canada. The
appointment was announced by James Grandy, Chairman of the Board of Canadian
Marconi company.
FUTURE BRIGHT FOR SMALL MACHINING FIRM WITH DIST DIPP AWARD
Dellcom Industries Inc. of Woodbridge, Ontario has been awarded a $162,970
Defence Industry Productivity Programme (DIPP) contract for the expansion
and modernization of its precision components manufacturing operations.
Industry Science and Technology (DIST) Minister Harvie Andre, who awarded
the contract, is enthusiastic about the company's prospects and sees "further
growth and an expanded client base" on the company's horizon. Dellcom has
a solid reputation with customers such as Boeing Canada de Havilland Division,
Atlantis Aerospace Corporation and Garrett Canada for its precision machining
of parts for aircraft and defence products. The DIPP contract allows the
firm to acquire two new numerically controlled precision milling machines.
"A new HRCO B20 has already been installed in the plant," says Mr. Silvano
Dell'Agnesc, the company's president. "We bought this machine because of
its excellent controls." A second milling machine with a higher production
capacity is being assembled and calibrated this week. Dell'Agnesc eagerly
states that the second unit will increase the output of his operation through
lower "down-times for tool changes and a faster machining rate".
Dell'Agnesc is keen on making productivity improvements to his firm's operations
and has a comprehensive modernization programme envisioned for the future.
He is eager to have a complete computer aided design and manufacturing
(CAD-CAM) capability fully integrated into his shop to increase efficiencies
and better serve his customers. "The first new machine gives us some modest
CAD-CAM ability," he told The Wednesday Report, "and fits
well into our plans for future growth." Dell'Agnesc's immediate ambition
is to visit Boeing in Seattle, early in 1990, to seek new machining business
for his shop from that end of Boeing's operations. Dellcom does a substantial
amount of work for Boeing Canada de Havilland Division and hopes to trade
on the excellent reputation which the firm's craftsmen have earned. The
company is located at 105 Haist Ave., Unit 1, Woodbridge, Ontario, L4L
5B6, telephone: (416) 851-6371.
DIPP CONTRACT AWARDS
Northern Airborne Technology of Kelowna, British Columbia has been awarded a
$202,825 Defence Industrial Productivity Programme (DIPP) contract to modify
its aircraft communication products to meet United States Federal Aviation
Authority (FAA) specifications and to expand and improve its product testing
capabilities. The firm anticipates an increase of some $3.9 million in
sales over the next five years as a result of the contract.
Linamar Machine Ltd. of Guelph, Ontario will get $723,110 under DIPP to purchase
jigs, dies, fixtures and special purpose equipment to develop a cost-effective
broaching process for machining precision components for the aircraft industry.
According to the Minister of State for Science and Technology, Bill Winegard,
the DIPP contract will generate incremental sales of $21.4 million for
the company over the next six years.
Eagletronic Industries Inc. of Downsview, Ontario has been awarded a DIPP contract
valued at $320,000 for the purchase of manufacturing equipment for precision
components used in the aerospace and defence industries. The company anticipates
a $5 million increase in sales and positions for 6 new employees over the
next three years as a result of the new capabilities the DIPP contract
provides.
RECENT U.S. DEFENCE CONTRACTS TO ALBERTA, ONTARIO AND QUEBEC
Intera Technologies Ltd. of Calgary, Alberta, a firm specializing in integrated
information and technical services for resource development, transportation
and the environment, has been awarded a contract valued at $8 million (U.S.).
Under this contract Intera will perform the services necessary to provide
specialized imagery data collection and processing for the United States
Defense Mapping Agency Systems Center.
Walbar Canada Inc. of Mississauga, Ontario has received a contract worth $1.2
million (U.S.) to supply the U.S. Navy with 1,322 nozzle segments for the
maintenance of aircraft jet engines. The contract's 100 percent option
to purchase additional nozzle segments has been exercised, bringing its
total value to $2.4 million (U.S.).
Arva Crane Limited of London, Ontario has been awarded a contract for the manufacture
and supply of 7.5-ton hydraulic cranes required by the U.S. Defense Construction
Supply Center. This $1.6 million (U.S.) contract is potentially valued
at $4.9 million (U.S.) as it contains a 200 percent option clause.
Aldrovandi Equipment Limited of Woodbridge, Ontario has received a $1.1 million
(U.S.) contract for the manufacture and supply of adverse terrain, 13,000
pound forklift trucks to the U.S. Air Force. Contract options, if exercised,
would be worth an additional $500,000 (U.S.).
Omatech Service Ltd. of Mississauga, Ontario, one of only a few North American lathe manufacturers,
has been awarded a contract valued at $904,366 (U.S.). The contract calls
for the manufacture and supply of specially designed, sliding gap bed lathes
for the U.S. Air Force.
LNS Systems Inc. of Pointe-Claire, Quebec has received a contract valued at $123,862
(U.S.) to design a portable air traffic control tower for the U.S. Navy.
If the design is approved by the Navy, it will then exercise an option
in the current design contract to proceed with production of the unit and
take delivery at Williams Field, McMurdo, Antarctica. The option to build
the unit is worth $414,250 (U.S.).
CALENDAR
Today, November 29 -- The Canadian Maritime Industries Association (CMIA)
will host a "Procurement Outlook Conference" at the Ottawa Delta Hotel
to focus on procurement for marine construction, repair and refit. With
this conference, the CMIA is attempting to replace a canceled series of
Department of Supply and Services conferences designed to provide advanced
notice of the government procurement needs.
Tomorrow,
November 30 - December 1 Technology Training Corp. will sponsor a conference
on "Worldwide Developments in Armour/Anti-Armour" at the Skyline Hotel
in Ottawa. The two-day assemblage will address such issues as: meeting
the reactive armour challenge; analyzing the changing Soviet Forces; evaluating
antitank weaponry; tank technology trends; IFVs/APCs; and Armour/Anti-Armour
outside NATO.
January 25, 1990 - The Conference of Defence Associations (CDA) will host its
sixth annual seminar at the Chateau Laurier Hotel in Ottawa. This years'
event will focus on "The Future of Canada's Air Force". The one-day seminar
will provide an in-depth profile of Air Command, its capabilities, commitments
and future. Scheduled speakers include: General John de Chastelain, Chief
of the Defence Staff; Lieutenant General F. R. Sutherland, Commander, Air
Command; and General G. L. Piotrowski, Commander in Chief, NORAD. The seminar
fee is $150.00. For further information, contact Lieutenant Mark Paine,
1990 Seminar, CDA Institute, 501-100 Gloucester St., Ottawa, Ontario, K2P
0A4, (613) 563-1387.
February 26-27, 1990 -- The 42nd Annual Technical Conference of the Canadian
Maritime Industries Association (CMIA) will be held at the Queen Elizabeth
Hotel in Montreal, and will include the fifth Canadian Shipbuilding and
Offshore Exhibition (CSOE). The latter will give exhibitors an opportunity
to display or explain their goods and services at the largest technical
marine conference in Canada. For additional information, contact: Joy MacPherson,
CMIA Director of Finance and Administration, (613) 232-7127.
March 7-8, 1990 -- The Defence Programmes and Advanced Technology Bureau of the
Department of External Affairs will coordinate and sponsor "Subcontractors
3" at the Toronto Constellation Hotel. The show is expected to attract
at least one European trade mission and dozens of major U.S. and Canadian
prime contractors. Visitors will attend on a by-invitation-only basis.
The event will feature Canadian subcontractors each in their own individual
booths. Companies wishing to obtain further information, or to register
for the event, should contact Mr. Lewis Ford, Deputy Director Defence Programmes
Division TDP, Department of External Affairs, 125 Sussex Drive, Ottawa,
K1A 0G2. Telephone: (613) 996-1836, Fax: (613) 996-9265. |
