UK Defence News Round–up: Week 40
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Chess Dynamics Secures £6.7M Sensor Deal
Chess Dynamics has announced the successful acquisition of a contract valued at over £6.7 million to supply ground-based sensor systems to a prominent European defence prime. This contract highlights Chess Dynamics' commitment to advancing surveillance and targeting technologies.
The newly contracted systems will be employed for ground-based target tracking applications, with work set to commence immediately. Deliveries are scheduled to continue through 2025.
Mark Byfield, Business Development Director at Chess Dynamics, stated, “This order underscores Chess’s expertise in surveillance and targeting systems and affirms the quality and reliability of our products. Our core strength in precise motion control, combined with high-performance sensors, ensures that our systems deliver enhanced performance and reliability.”
Chess Dynamics brings extensive knowledge and experience in designing high-performance multi-axis servo positioners and directors. The company has developed a comprehensive portfolio of products tailored for various surveillance, targeting, and fire control applications across both land and maritime environments.
This contract not only reinforces Chess Dynamics' position in the defence sector but also reflects the increasing demand for advanced sensor technologies in military applications.
QinetiQ Sells Cody Park to Tristan for £112M
QinetiQ Group plc has signed an agreement to sell its 407-acre freehold site at Cody Technology Park (CTP) to a fund managed by Tristan Capital Partners (TCP) for £112 million. This strategic move aims to streamline QinetiQ’s operations and focus on its core business.
Steve Wadey, QinetiQ’s Group Chief Executive Officer, expressed enthusiasm about the partnership, stating, “I’m delighted we have found a strategic partner committed to investing in Cody Technology Park and developing its long-term future as a centre of excellence in defence, science, and technology in Hampshire.” He noted that this sale aligns with QinetiQ’s strategic priorities and enhances its commitment to delivering value to customers.
QinetiQ will remain dedicated to Farnborough as its headquarters and will lease back its existing footprint for 15 years. The deal is expected to significantly improve QinetiQ’s net debt by around £65 million, with only a minimal impact on underlying operating profit and cash flow due to the loss of tenant income.
Tristan Capital Partners plans to initiate an investment program to modernize and further develop the technology park for all current and future tenants. This effort aims to enhance the overall tenant experience and support the local economy.
Upon completion of the transaction, expected within eight weeks, QinetiQ will receive the £112 million cash payment. However, under IFRS 16 accounting regulations, the company anticipates a one-off, non-cash accounting loss of approximately £30 million, reflecting the differing values of the assets sold and those leased back.
This transaction marks a significant step for both QinetiQ and Tristan Capital Partners as they collaborate to advance the development of Cody Technology Park in the aerospace and defence sectors.
Coherent Sells GaAs Fab to MoD; Octric Takes Over
Coherent has finalized the sale of its gallium arsenide (GaAs) wafer fabrication facility in Newton Aycliffe, England, to the UK Ministry of Defence for a reported £20 million. This transaction is part of Coherent’s broader strategy to streamline operations following its 2022 merger with II-VI.
The facility was previously utilized for manufacturing vertical cavity surface-emitting lasers (VCSELs) for 3D sensing devices in iPhones. However, it remains unclear whether the site, noted as the only secure GaAs fab in the UK, will continue to produce optoelectronic devices, as the Ministry of Defence emphasizes a focus on military applications.
A spokesperson for the MoD stated, “This strategic investment will ensure the facility is capable of producing gallium arsenide semiconductors as well as more powerful semiconductors in the future, which will include the latest technology.” GaAs devices are vital for various radio-frequency electronic applications, including radar units, signal jammers, and electronic warfare, alongside optoelectronic functions such as laser diodes and photodetectors.
Coherent CEO Jim Anderson commented on the decision, saying, “Divesting the Newton Aycliffe plant is part of our effort to optimize our portfolio and streamline our operations, allowing us to focus our investment and capital on areas with the greatest long-term growth and profitability.”
Following the sale, Ian Croston, who has managed the facility since 2021, will continue in his role as general manager for a new entity called Octric Semiconductors, furthering the facility's mission under the MoD’s guidance.
Babcock and ST Engineering Launch GDAM Mortar
In a significant advancement for the UK armed forces, Babcock and ST Engineering have launched the 120mm Ground Deployed Advanced Mortar System (GDAMS), a vehicle-mounted mortar designed to enhance the firepower of Britain's military. This innovative system, developed through a strategic partnership, aims to modernize the British Army's weaponry while boosting local employment, potentially generating up to 70 skilled jobs in southwest England.
Manufactured at Babcock’s facility in Devonport, the GDAMS marks the first production of 120mm mortar systems in the UK in decades. The collaboration between Babcock and ST Engineering leverages their combined expertise, technologies, and solutions, positioning the GDAMS as a crucial component of Britain's close indirect fire capabilities.
Tom Newman, Chief Executive of Babcock’s Land business, emphasized the system’s role in enhancing the British Army's operational efficiency. “The Babcock 120mm GDAMS can support the modernisation of the British Army with increased firepower, while also improving the availability, affordability, and overall capability of essential equipment,” he stated.
Brigadier General (Ret) Jin Kiat Chua, head of ST Engineering’s International Business, Defence and Public Security, highlighted the tactical advantages of the GDAMS. “This pre-eminent firing solution pushes power to the edge and enhances firepower,” he explained. Chua also underscored the importance of this partnership in delivering a sovereign solution that aligns with the UK’s Land Industrial Strategy, ultimately enhancing the combat effectiveness of the British Army.
The GDAMS was unveiled at the Defence and Security Equipment International (DSEI) event, held at the vehicle testing grounds at Millbrook from September 18-19, 2024, showcasing the collaborative efforts of both companies to meet the evolving needs of the military.
As the UK looks to bolster its defence capabilities, the introduction of the GDAMS not only strengthens military operations but also underscores the importance of local manufacturing and job creation in the defence sector.
That's it for this week folks, Enjoy the weather.