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Volume 6, Issue 59
Aug 24, 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

U.S. Army Awards General Dynamics Contract for 30mm PGU-15 Ammunition Production

The U.S. Army Joint Munitions Command at Rock Island, Ill., has awarded General Dynamics Ordnance and Tactical Systems the first year of a multiple award contract with a total potential value of US$74.6 million for the production of 30mm PGU-15 A/B Target Practice Cartridges. General Dynamics Ordnance and Tactical Systems is a business unit of General Dynamics.

The 30mm PGU-15 A/B is a low cost, target practice cartridge, ballistically matched to the PGU-13/B HEI combat round. Use of the target practice rounds provides realistic training on the A-10 GAU-8/A Gatling gun to U.S. Air Force pilots. Work on this contract will be performed at the company's Marion, Ill., facility and will be completed in October, 2008.

[ FYI Index ]

Lockheed Martin Selects Camden Arkansas as Manufacturing Site

Lockheed Martin, prime contractor and systems integrator for the Terminal High Altitude Area Defense (THAAD) Weapon System, has selected its award-winning manufacturing facility in Camden, AR, to build the THAAD launcher and Fire Control and Communications (TFCC) unit.

Initially, 35 new jobs will be created to support the program with production taking place in the 200,000 square-foot Launcher Integration Complex. Camden Operations currently has an employment population of 450. Employment at the facility could grow to more than 500 by 2010.

At a ceremony in the Camden Launcher Complex, elected officials from Arkansas, Missile Defense Agency officials, Lockheed Martin executives and employees celebrated the facilities newest product.

In 2006, Lockheed Martin's Camden Operations was selected as one of INDUSTRYWEEK magazine's "Top Ten Best Plants." The Camden plant was selected from more than 200 potential candidate facilities across North America.

Camden Operations is a 10-time winner of the Employee Involvement Association's (EIA) Performance Excellence Award. Camden Operations has been recognized by the Center for Suggestion System Development (CSSD) as a Best Practice among suggestion programs, and has received CSSD's Best of the Best Awards for employee participation and strong management support.

The facility produces the battle-proven Multiple Launch Rocket System (MLRS) launcher and a family of munitions, which includes the Guided MLRS Unitary Rocket, and the now battle-proven, lightweight High Mobility Artillery Rocket System (HIMARS) Launcher, which fires MLRS rockets and Army Tactical Missile System (ATACMS) missiles. Camden is also the home of the battle-proven Patriot Advanced Capability-3 (PAC-3) Missile, which has been in production since late 2001.

THAAD is designed to defend U.S. troops, allied forces, population centers and critical infrastructure against short- to intermediate range ballistic missiles. THAAD comprises a fire control and communications system, interceptors, launchers and a radar. The THAAD interceptor uses hit-to-kill technology to destroy targets, and is the only weapon system that engages threat ballistic missiles at both endo- and exo-atmospheric altitudes.

A key element of the nation's Ballistic Missile Defense System (BMDS), THAAD is a Missile Defense Agency program, with the program office located in Huntsville, AL. The agency is developing a BMDS to defend the United States, its deployed forces, friends and allies against ballistic missiles of all ranges and in all phases of flight.

[ FYI Index ]

Boeing Projects $70 Billion Market for Russia and the CIS

Russia and the Commonwealth of Independent States (CIS) will require 1,060 new airplanes worth about $70 billion over the next 20 years, according to The Boeing Company's updated annual forecast for the commercial airplane market. The complete forecast, known as the Boeing Current Market Outlook, is available on the Boeing web.

This year marks the first year that Boeing has published its forecast for the Russia/CIS region as part of the Current Market Outlook.

Airplanes in the Boeing 737 size range will account for 44 percent of all commercial jetliners delivered to Russian and CIS airlines during the next 20 years, amounting to 470 units valued at $30 billion.

Eleven percent -- or 110 units at a value of $20 billion -- will be twin-aisle airplanes like the Boeing 777 and 787.

Forty-three percent will be smaller regional jets while airplanes of the Boeing 747 size or larger will comprise 2 percent of the market.

The flying public's demand for more point-to-point travel options will also stimulate demand for smaller airplanes. In the past, large airplanes like the 747 were the only airplanes able to fly very long distances. This forced large numbers of passengers to make connections through major hubs to get to their ultimate destinations, through what is called the hub-and-spoke system.

As smaller airplanes such as the Next-Generation 737, the 777 and the 787 are much more fuel efficient thanks to advanced technologies and innovation, they are able to fly longer distances with fewer passengers than a 747 and still remain profitable for the airlines that operate them.

For instance, today a traveler in Moscow wanting to fly to Honolulu or Rio de Janeiro would have to fly through Los Angeles or another large city first, then onto Honolulu or Rio de Janeiro. A passenger in Novosibirsk going to Havana would have to fly through Moscow first. With the 787, that same traveler can fly direct from Moscow to Honolulu, Moscow to Rio de Janeiro, or Novosibirsk to Havana.

Illustrating the emergence of point-to-point, in Europe the number of nonstop flights has grown at an average rate of about 5 percent and the average airplane size has fallen. More passengers are flying direct routes on smaller airplanes.

The Next-Generation 737 will help airlines meet demand for shorter, more direct routes, and the all-new fuel-efficient Boeing 787 Dreamliner will provide needed capacity for longer-range direct flights.

As air traffic increases, newer airplanes such as the Next-Generation 737, the 787 and the 747-8 Intercontinental will help meet increased demand while also lowering airplane emissions compared to older aircraft. Boeing and its engine partners will continue to develop new-technology breakthroughs, beyond those on the 787, to further reduce aircraft emissions.

Air traffic within Russia and the CIS is expected to grow 6 percent per year over the next 20 years. Traffic on transatlantic routes between Russia/CIS and North America is projected to increase 4.1 percent annually.

[ FYI Index ]

Alcatel-Lucent Announces Changes in its Senior Leadership Team

Representatives of Alcatel-Lucent announced changes to its senior leadership team Wednesday.

Frank D'Amelio, Chief Administrative Officer of Alcatel-Lucent is leaving the company to accept the position of Chief Financial Officer at Pfizer and Mike Quigley, President, Science, Technology and Strategy of Alcatel-Lucent, has decided to leave the company and return to Australia.

With Mike Quigley's departure, Etienne Fouques, currently head of the Carrier Business Segment will assume the leadership for the Science, Technology and Strategy functions that previously reported to Mike. In addition he will also oversee the Services Business Group, which will continue to be led by John Meyer.

Michel Rahier, head of the Wireline Business Group will assume the overall leadership of the Carrier Business Segment, which includes our Wireline, Wireless, and Convergence businesses. The individuals who previously reported to Etienne as head of the Carrier Business Segment will now report to Michel. Further, we will strengthen the interface between the product businesses and the supply chain by reporting the Global Supply Chain to Michel as well.

With Frank D'Amelio's departure the organizations that previously reported to him will now report to other members of the senior leadership team. In addition to his role as Chief Administrative Officer, Frank also oversaw the Integration Program Office, along with Christian Reinaudo. Christian will continue in his role, and together with Janet Davidson will co-lead these efforts. The discipline for monitoring and managing our integration activities are in place and operational and our integration plans, as we have said, are progressing.

[ FYI Index ]

3M to Acquire Neoplast Co. Ltd.

Representatives of 3M announced the company has entered into a definitive agreement to acquire Neoplast Co. Ltd., a manufacturer/distributor of surgical tapes and dressings and first aid bandages for both the professional and consumer markets across the Asia Pacific region. Terms of the transaction were not disclosed.

Neoplast exports account for the majority of its sales serving clients in the field of wound-care.

Complementary acquisitions such as this support 3M's core business. 3M's extensive line of trusted products is intended to simplify and improve skin health and the treatment of wounds, both acute and chronic. These products provide cost-effective solutions and are supported by educational services, professional and technical support, as well as ongoing research and development.

Neoplast employs approximately 700 people. The transaction is expected to close in the third quarter, subject to customary closing conditions.