France Defence and Security Report Q3 2010

July 21, 2010 - PRLog -- Average delivery times from the French defence industry are predicted to slip further in 2010. In 2009 the French procurement agency, the DGA, ordered equipment totalling EUR19.34bn – twice as much as in 2008 including twice as much for UORs (urgent operational requirements) and the highest procurement level for two decades. In 2009, France also exported 21% more arms than in 2008 earning a total of EUR7.95bn and the country is expected to earn EUR10bn-12bn-worth of defence exports in 2010. The boom has been assisted by the streamlining of France’s export control regime since 2006. However, the news is tempered with calls for French companies to respond quicker to invitations to compete in international tenders. Imports were marginally up in 2009, at US$68mn, compared with US$63mn in 2007 – mainly in sensors and artillery – but with no aircraft imported in 2008 Meanwhile, France is interested in increasing defence industrial co-operation with the UK to save costs while maintaining a degree of independence, on future projects for anti-surface missiles, UAVs (unmanned aerial vehicles), and next-generation military communications satellites. While the UK (which has also expressed an interest in further collaboration) and France have a long record of defence project cooperation in aircraft, helicopter and other projects, there have been problems in other equipment areas. However, the problem stretches across European collaborations – most notably, in the A400M military transport aircraft project, which remains the main cause of uncertainty for the French defence and aerospace industry. In January 2010, EADS indicated that it would take on EUR800mn of an overrun of EUR5.2bn incurred by the A400M over-budget.

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Much depends whether the seven partner nations, including France, will withdraw further funding. The A400M flew on its maiden flight on 11 December 2009. In 2009, France and the UK spent EUR80mn on joint defence R&D, EUR30mn more than the projected estimate agreed at a meeting in March 2008. This was for joint work on high-tech systems such as sensors and navigation systems, and unmanned aerial systems aerodynamics, as well as CBRN (chemical, biological, radiological and nuclear) defence. According to Jane’s there are burgeoning plans for several promising and advanced areas for future co-operation including anti-surface missiles, UAVs (unmanned aerial vehicles), and next-generation military communications satellites. The downside is a past record in failing to work together successfully on urgently needed land vehicle programmes for the Afghan theatre. Therefore the road towards greater co-operation looks set to be a rocky one. Meanwhile, in February, France announced it would send a further 80 military trainers to Afghanistan, mainly to train up the Afghan forces in hunting down insurgents. With 3,500 French troops currently deployed, the training mission is the first additional deployment by France since the appeal by President Obama for an increase in allied combat troops. During an unannounced visit to Kabul on February 11, Prime Minister François Fillon made a big commitment by saying his country would maintain a troop presence in Afghanistan until stability was restored.

Scope

   * Benchmark BMI’s Independent 5-year Defence & Security Industry Forecast on France to test other views - a key input for successful budgetary and strategic business planning in the French defence and security market.
   * Target Business Opportunities & Risks in the French Defence & Security Sector through reviews - and major deals, projects and investments in France.
   * Exploit The Latest Competitive French Defence & Security Intelligence & Company SWOTS on your peers and competitors through company rankings by sales, market share, investments and leading products and services.

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