BAE Systems Signs Saudi-Eurofighter Deal (excerpt)
(Source: Reuters; published Apr 3, 2012)
LONDON --- British defence contractor BAE Systems said a contract to build 48 Typhoon aircraft in Britain for the Saudi Arabian air force had been signed but changes to the price of the deal had yet to be agreed.
BAE had expected changes to the terms of the deal to be signed off in 2011, but it warned in January this year that talks over proposed adjustments to the final assembly of the last 48 of the 72 Typhoon aircraft would continue into 2012 and could hit 2011 profit.
The proposed changes -- such as the creation of a maintenance facility in Saudi Arabia, the addition of new capability to some aircraft and the formalisation of price changes -- could affect the price of the deal.
The Salam deal to build a total of 72 aircraft was signed in 2007 and is worth around 4.5 billion pounds ($7.21 billion), with the first squadron of 24 already delivered to the Royal Saudi Air Force (RSAF).
"The contract for the final assembly of 48 Typhoon aircraft in the UK has now been signed and final assembly has commenced at our Warton facility, discussions are ongoing with regard to the creation of a maintenance facility in Saudi Arabia and the formalisation of price variations," BAE said in an email sent to Reuters on Tuesday.
"In terms of ... conversion to Tranche 3 and formalisation of price escalation, good progress has been made with budgets approved in December 2011 through the royal decree. Negotiations on price escalation will continue into 2012." (end of excerpt)
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BAE Systems Board Visits King Fahd Air Base In Taif
(Source: BAE Systems; issued April 4, 2012)
The Chairman of the Board of Directors of BAE Systems, Dick Olver, visited King Fahd Air Base in Taif on the 27 March. He was accompanied by a number of Company leaders and Members of the Board of Directors. The delegation was received by King Fahd Air Base Commander, Major General Fayyad Al-Roweily and a number other senior Royal Saudi Air Force officers.
During the visit discussions took place on ways to enhance the prospects for future cooperation in various areas. The meeting was attended by Chief Executive, Ian King, Group Finance Director, Peter Lynas and the Group Managing Director – International, Guy Griffiths.
Managing Director of BAE Systems Saudi Arabia, Jim McDowell, said: "Saudi Arabia is a key market for the company. We want to be considered as an industrial and a strategic partner for the Kingdom, and have made significant investments to develop the industrial capabilities of local industrial partners to reflect that. We also continue to invest in the training and development of our 3,500 Saudi National workforce.”
He also added: "We at BAE Systems are keen to transfer ‘state of the art’ technology and knowledge to partners within Saudi Arabia as well to develop strategic relations with our customers; this visit supported that." He concluded: "This meeting was a wonderful way to strengthen relations.”
BAE Systems is a global defence, aerospace and security company with approximately 100,000 employees worldwide. The Company delivers a full range of products and services for air, land and naval forces, as well as advanced electronics, security, information technology solutions and support services.
BAE Systems Saudi Arabia is responsible for all aspects of BAE Systems’ activities and its long-term presence in Saudi Arabia. The Company acts as prime contractor on several government-to-government agreements and also has a number of commercial contracts supporting air, land and naval forces in the Kingdom.
BAE Systems Saudi Arabia is one of the Kingdom’s largest international supporters of the industrial sector through the transfer of technology and expertise. It employs 5,300 people in Saudi Arabia - around 60 per cent of its employees Saudi nationals - and 250 people in the UK.