Raytheon, Eurosam compete for $7.9 bn Polish air defence contract

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Energy News

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Raytheon, Eurosam compete for $7.9 bn Polish air defence contract
by Staff Writers
Warsaw (AFP) June 30, 2014

Australia to help fund development of enhanced Seasparrow missile
Canberra, Australia (UPI) Jun 30, 2013 - Australia's Defense Department said the government will continue participation in NATO's Seasparrow Consortium for combating anti-ship missiles.

The Evolved Seasparrow Missile by Raytheon was developed by the U.S. Navy and is used on a number of U.S. Navy vessels as well as ships of Australia, Canada, Denmark, Germany, Greece, Netherlands, Norway, Spain, and Turkey.

Defense Minister David Johnston said the government, which will sign a memorandum of understanding with the NATO Seasparrow Consortium, has allocated about $300 million to support development of an upgraded Seasparrow, "ensuring the safety and effectiveness of Royal Australian Navy operations."

"The upgrade of the Evolved Seasparrow missile system follows on from a number of complementary Anzac-class frigate upgrade projects," Johnstone said.

"The government expects to make a final decision on procurement of upgraded ESSMs around 2020. The government is keen to ensure that every ESSM Block 2 missile that is eventually produced will provide work for Australian industry."

Poland said Monday it had shortlisted US manufacturer Raytheon and French-led consortium Eurosam as bidders for a contract to build its air defence system, which local media say is worth $7.9 billion.

The defence ministry said in a statement it had rejected offers from the Israeli government and the MEADS consortium lead by US firm Lockheed Martin.

It added that Poland's defence group PHO would partner up with the winning bidder, to be announced by the end of the year.

The Eurosam consortium is made up of French group Thales and the European defence firm MBDA.

Local media said the contract could be valued at 24 billion zloty (5.8 billion euros, $7.9 billion) across 10 years.

The central European NATO member has sped up plans to upgrade its military since the crisis erupted in neighbouring Ukraine.

It plans to devote 140 billion zloty to the upgrade over a decade.

Unlike other European countries, Poland has kept its defence budget constant throughout the global financial crisis.

According to law, it is fixed at 1.95 percent of gross domestic product, which this year equals 32 billion zloty.

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