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Volume 6, Issue 56
June 29, 2007

Circulation: 18,120
Editor: Beth Keithly

Friday FYI

Newsletter from the The Office of Global Strategies and International Relations - U. T. Dallas

Industry News

BP, ABF and DuPont Unveil $400 Million Investment in UK Biofuels

The wide spread availability of biofuels in the UK took a major step forward today as BP, Associated British Foods (ABF) and DuPont announced major investment plans, totaling around $400 million, for the construction of a world scale bioethanol plant alongside a high technology demonstration plant to advance development work on the next generation of biofuels.

The bioethanol plant, in which BP and ABF subsidiary British Sugar would each hold 45 per cent with DuPont owning the remaining 10 per cent, will be built on BP's existing chemicals site at Saltend, Hull. Due to be commissioned in late 2009, it will have an annual production capacity of some 420 million litres from wheat feedstock.

Although initial production would be bioethanol, the partners will look at the feasibility of converting it to biobutanol once the required technology is available.

Discussions are currently underway to explore strategic partnerships with grain trading business Frontier Agriculture for the supply of locally grown wheat feedstocks and with co-product marketing company AB Agri in relation to DDGS, a byproduct of bioethanol manufacture. It is expected that formal agreements would be finalized after regulatory approvals are obtained.

Although the plant will be built from scratch, it will have access to the existing infrastructure at the BP site for essential supporting services. Once operational it will provide around 70 new full-time posts in addition to the employment opportunities generated by the construction phase.

The BP site in Hull has also been selected as the preferred location for a planned biobutanol demonstration plant, funded and owned equally by BP and DuPont which could produce around 20,000 litres of biobutanol a year from a wide variety of feedstocks.

To begin market development of biobutanol, BP and DuPont are also establishing initial introduction plans for biobutanol in the UK. The companies will import small quantities of biobutanol, sourced from an existing first generation manufacturing facility in China. The first product is expected to arrive by the end of the year and will be used to carry out infrastructure and advanced vehicle testing.

This testing will build upon initial laboratory engine tests using conventional butanol which indicated that butanol has similar fuel performance properties to unleaded petrol. In addition, work will be undertaken to gather comprehensive data on the environmental footprint and sustainability of this next generation fuel.

[ FYI Index ]

Boeing to End Parts Production Operations in Tennessee

Representatives of Boeing announced Wednesday that it will end parts production operations at the Oak Ridge, Tenn., site by the first quarter of 2008. In addition, the Oak Ridge site's other key customer, USEC Inc., together with BWX Technologies, Inc., announced their decision to enter into a long-term contract for BWXT to assume responsibility for production of centrifuge components in Oak Ridge.

The decision to end parts production operations was made because the facility no longer has sufficient Commercial Airplanes or other parts production work to remain in operation. Exiting Oak Ridge is also part of the continued consolidation and alignment of parts manufacturing capability and capacity across Boeing Fabrication facilities. In July, Boeing will begin the first in a series of 60-day layoff notices to employees in association with this announcement.

Boeing shared the news in meetings with the 265 people who work at the Oak Ridge facility. In April, employees were informed of the company's intention to exit Commercial Airplanes parts production in Oak Ridge and move remaining work to Boeing Salt Lake City and external suppliers. The Oak Ridge facility previously produced flight deck consoles, forward instrument panels, aisle stands and other metal machined parts for Commercial Airplanes.

The centrifuge component work has been provided by Boeing for USEC in support of the Lead Cascade/American Centrifuge program since 2004. Boeing established the Oak Ridge facility in 1981 to support early centrifuge parts manufacturing.

Gary Bomhoff, Oak Ridge site leader, said that there are opportunities across Boeing for employees willing to relocate to other sites. He also said that Boeing is working together with the City of Oak Ridge, USEC, BWXT, the State of Tennessee and local businesses to mitigate impacts from Boeing's exit on employees and the community.

[ FYI Index ]

Raytheon Awarded Rolling Airframe Missile Contracts Valued at Nearly $146 Million

Raytheon Company has been awarded $145.4 million by the U.S. Navy for production and enhancement of its Rolling Airframe Missile program.

Nearly $105.5 million will go to the development of Rolling Airframe Missile Block 2, a kinematic and sensor upgrade to the company's Rolling Airframe Missile Block 1. Rolling Airframe Missile is one of the world's most modern ship self-defense weapons, designed to provide exceptional protection for ships of all sizes.

Operating under a cooperative Memorandum of Understanding for the Block 2 system demonstration and development program, Raytheon's German industry partner, RAM-System GmbH, has been funded to develop an evolved missile radio frequency sensor that will provide increased sensitivity and discrimination in order to successfully defeat targets utilizing next generation guidance radars. The combined U.S.-German Rolling Airframe Missile Block 2 system demonstration and development program is scheduled to reach initial operating capability in 2011.

Rolling Airframe Missile is the U.S. Navy's premier supersonic, lightweight, quick-reaction, fire-and-forget missile. The system is ideally suited to counter the modern Anti-Ship Missile threat and has been in the U.S. fleet since the early '90s. Rolling Airframe Missile Block 1 incorporates a new image-scanning seeker with the added capability of autonomous infrared- all-the-way guidance, thus countering advanced anti-ship missiles that do not employ on-board radar seekers. This new seeker also enables increased capability against crossing targets and the ability to engage fixed- and rotary-wing aircraft as well as surface targets. Enhanced digital signal processing further provides increased resistance to countermeasures and superior performance in severe infrared background conditions.

Rolling Airframe Missile is a joint cooperative program between the United States and Germany. Rolling Airframe Missile is currently deployed on, or planned for, the LPD 17 class, LHA 1 and LHA 6 class, LHD 1 class, LSD 41 class, CV 63, CVN 68 class and the Littoral Combat Ship in the U.S. fleet and on nearly every German warship. Additional customers include Korea, Greece, Egypt and the United Arab Emirates. Rolling Airframe Missile Block 2 will be compatible with existing Rolling Airframe Missile launching systems and the SeaRAM Anti-Ship Missile Defense System.

[ FYI Index ]

U.S. Navy Awards General Dynamics $29 Million For Post-Shakedown Work on USS Texas

The U.S. Navy has awarded General Dynamics Electric Boat a $28.9 million contract modification to continue to perform a range of work on USS Texas (SSN-775) during its post-shakedown availability (PSA). Electric Boat is a wholly owned subsidiary of General Dynamics.

The PSA comprises maintenance, repairs, alterations, testing and other activities and will involve more than 500 current employees at its peak. Scheduled for completion in February 2008, the contract has an estimated total potential value of $85 million.

USS Texas is the second ship of the Virginia Class, the first of the Navy’s major combatants to be designed specifically for post-Cold War missions. Electric Boat and its construction teammate, Northrop Grumman Newport News, have received contracts to produce 10 Virginia-class submarines.

[ FYI Index ]

Lockheed Martin Receives $18 Million for Low Cost Reduced-Range GMLRS Practice Rockets

Lockheed Martin has received an $18 million contract for Low Cost Reduced-Range Practice Rockets (LCRRPR) for the Guided Multiple Launch Rocket System (GMLRS).  The contract calls for the delivery of 4,350 practice rockets for Soldiers training to use GMLRS, for which the Army has declared an urgent in-theater need.  Production on the contract will occur at the company’s facility in Camden, AR.

The differences between the LCRRPR and the tactical rounds are that the LCRRPRs have only an 8- to 15-kilometer range, and do not carry live warheads.  However, their size, shape and motor successfully emulate a real GMLRS rocket launch, providing a very realistic training experience.  The LCRRPRs have no sensors or GPS package, so they cannot be used against real targets.

GMLRS supports the Army Transformation with increased overmatch capabilities and reduced logistics footprint over current free-flight rockets.  The Guided MLRS Unitary integrates a 180-pound unitary warhead into the GMLRS rocket, giving battlefield commanders the ability to attack targets up to 70 kilometers away with high precision. 

The battle-proven GMLRS is a multinational program with the United States, United Kingdom, Italy, France and Germany.

[ FYI Index ]

Bell Helicopter Signs New Russian Representative; Wins $10 Million Multi-Ship Order

Representatives of Bell Helicopter, a Textron Inc company, announced at the Paris Air Show that Jet Transfer is the company's new sales representative in Russia. Immediately after the announcement, Jet Transfer committed to sales valued at over $10 million.

Mr. Alexander Yevdokimov, General Director of Jet Transfer stated, "the demand for Bell helicopters in Russia is expected to be high and Jet Transfer is very excited to be associated with Bell and its parent company, Textron."

Yevdokimov also indicated that Jet Transfer, a company of Jet Group, is a leader for business jet charter operations and sales in Russia. The partnership with Bell Helicopter will complement an already solid reputation in the aviation industry.

Bell Helicopter is an industry-leading producer of commercial and military, manned and unmanned vertical lift aircraft and the pioneer of the revolutionary tilt rotor aircraft. Globally recognized for world-class customer service, innovation and superior quality, Bell's global workforce serves customers flying Bell aircraft in more than 120 countries.

[ FYI Index ]

EDS and China’s Ministry of Commerce Sign Milestone Strategic Cooperation Agreement

Representatives of EDS and China’s Ministry of Commerce (MOFCOM) announced a milestone partnership, which aims to boost China’s role as a global giant in IT services.

Under the Strategic Cooperation Agreement, EDS and MOFCOM will work closer to shape the industry’s direction, especially on policy and regulatory issues, as well as cultivate market growth opportunities.

This latest partnership highlights the increasing cooperation between EDS and the Chinese Government. In May, EDS signed a strategic agreement with the Hubei provincial government and in April opened its new Global Service Center in Wuhan City.

In line with this, EDS, with research and analytical support from McKinsey and Company, spelled out key recommendations in a policy paper issued during the Fifth Annual China International Software Information Service Fair (CICIS) in Dalian, which was attended by several major government ministries and agencies. The policy paper was sponsored by the MOFCOM with the Trade Services Division.

Officials from the Ministry of Commerce, Ministry of Information Industry, Ministry of Education and over 100 other guests from local government, IT companies and media were present at the signing ceremony. Senior EDS management was also on hand to discuss China’s role in the business of IT outsourcing including Joe Eazor, EDS Asia; David Wirt, Vice President and Managing Director, EDS Greater China and Korea; and Bill Sweeney, Vice President of EDS Global Government Affairs.

[ FYI Index ]

Nortel to Appoint New Chief Information Officer

Nortel President and CEO Mike Zafirovski announced Monday that Steven J. Bandrowczak will be appointed Nortel’s new chief information officer (CIO), effective July 16, 2007.

Reporting to Dennis Carey, executive vice president, Corporate Operations, Bandrowczak will be responsible for Nortel’s information technology strategy and operations, leading the Information Services group, and overseeing Nortel’s internal network infrastructure, business applications and data security.

Prior to joining Nortel, Bandrowczak was senior vice president and CIO of Lenovo, a global producer of PC products and value-added professional services. Prior to that, he served as executive vice president and worldwide CIO for DHL Worldwide, a global market leader in the international express and logistics industry. Previously, he spent 14 years with Avnet in a variety of IT roles, culminating as CIO for the electronics distributor. Bandrowczak earned his bachelor’s degree in computer science from Long Island University, C.W. Post. He was also named one of the Top 100 CIOs by Computerworld in 2004.

Bandrowczak will lead Nortel’s IT department, leveraging the breadth of the Company’s own technology and networking capabilities to transform business networks, remove barriers to efficiency, productivity and growth and create opportunities for new revenues and services.

Bandrowczak will assume the CIO role from Bill Donovan, who has served as CIO on an interim basis since May 15, 2007. Donovan continues as senior vice president in Nortel’s Business Transformation Office.

[ FYI Index ]

3M Completes Sale of Priority Control and Traffic Detection Businesses to TorQuest Partners Inc.

Representatives of 3M announced it has completed the sale of its Opticom Priority Control Systems and Canoga Traffic Detection businesses to TorQuest Partners Inc., a Toronto-based private investment firm, and members of the senior management team of the businesses.

A new company will be formed, called Global Traffic Technologies LLC, which will be headquartered in the Twin Cities under the leadership of Rick Sachse, formerly manager of these businesses that were part of the 3M Traffic Safety Systems Division. The products will continue to be sold under the Opticom and Canoga brands offering the reliability, quality and performance required by customers, and will continue to be serviced around the world.

3M will continue to grow its Traffic Safety Systems Division business globally by providing advanced technologies to enhance roadway safety, efficiency and traffic management through signing, pavement marking, vehicle registration and intelligent transportation solutions.