Wednesday, March 1 2000

Norway picks Bazan and Lockheed Martin for frigate program
Norway's Ministry of Defense has selected the team led by shipbuilder Empresa Nacional Bazan (E.N. Bazan) of Spain to provide the Royal Norwegian Navy with a new frigate designed to protect the country against subsurface, surface and air threats. Bazan is teamed with Lockheed Martin.

Minister of Defense Elbjorg Lower said Bazan/Lockheed Martin twill build five frigate- sized ships under the program. The first will be delivered to Norway in 2005. The value of the program is $1.4 billion. Approval by the Norwegian Parliament is required before a contract can be signed.

Members of the Bazan team include Lockheed Martin Naval Electronics & Surveillance Systems (NE&SS), Moorestown , NJ and several Norwegian companies including

  • Kongsberg Defense and Aerospace AS (KDA),
  • Umoe, and
  • Mjellum & Karlsen.

Lockheed Martin will provide the integrated weapon system (IWS) to the frigate and Norwegian industry will provide key elements of the IWS to the team.

Lockheed Martin's integrated weapon system bid is based on the U.S. Navy's Aegis combat system, for which Lockheed Martin serves as prime contractor and engineering design agent. Other notable elements of the integrated weapon system solution include a frigate-size version of the SPY-1 radar, which is the heart of the Aegis system and the MK 41 Vertical Launching System, the below-deck missile launching system designed and developed by Lockheed Martin and deployed on U.S. Navy ships and those of allied nations.

Lockheed Martin's role in the Norwegian New Frigate program is valued at approximately $500 million.

Fincantieri sells Wärtsilä NSD stake to Metra
The 15.4% stake in Wärtsilä NSD held by Fincantieri Cantieri Navali Italiani S.p.A. was transferred to Metra Corporation yesterday . The acquisition price was Euros 100 million (which, these days is more or less $100 million).

Metra, a Finnish public company whose other major components include Imatra Steel., is now the 100% owner of Wärtsilä NSD. The cooperation between Fincantieri and Wärtsilä NSD will continue in Italy, where Wärtsilä NSD is a major supplier of marine engines to Fincantieri's shipyards.

EC approves Finnish aid scheme for ice classed domestic ships
The European Commission has decided that a Finnish scheme for interest subsidy for vessel acquisitions is compatible with the rules on aid to shipbuilding. The scheme allows Finland's Ministry of Transport and Communications to grant interest subsidy for loans taken for the acquisition of new cargo vessels ordered by Finnish shipping companies in 2000. The ships must be used primarily for carrying Finnish export and import cargo by sea. They must be built to ice duty class 1 A super requirements and fulfil certain safety and environmental requirements. The interest subsidy is 3% and the loan amount subsidized musdt not exceed 50% of the acquisition cost of the vessel.

The scheme is considered as operating aid to shipbuilding but was considered io be in accord with European Council Regulation 1540/98 on State aid to shipbuilding.

Box ship order for Brazilian yard
Alianca Navegacao has reportedly placed a R$180mil ($101.8 million) contract with Brazil's Estaleiro Ilha (Eisa) for two 4,000 TEU full containers ships. The ships will be used by Alianca for services between South America, Europe and the U.S.

Electric Boat gets $55 million Navy contracts
The U. S. Navy has awarded General Dynamics Electric Boat submarine engineering and life-cycle support contracts work worth up to $55 million.

The largest of the awards -- $38.3 million -- will provide for design, engineering, material and logistics support for the Trident program. The award also supports work at Puget Sound Naval Shipyard to backfit older Trident submarines to accommodate D-5 missiles, and missile-tube maintenance at Kings Bay, Ga.

Sixty percent of the work will be performed at Groton; 11 percent at the Newport engineering office and Quonset Point facility, both in Rhode Island; 13 percent at Bangor, Wash.; and 5 percent at the Washington, D.C., engineering office.

Under the terms of the other award, Electric Boat will perform $4.2 million worth of planning work in support of Selected Restricted Availabilities (SRA) scheduled for USS Dallas (SSN-700) and USS Pittsburgh (SSN-720) in 2001. The option to perform the maintenance and upgrade work at the New London submarine base will be worth $12.4 million, bringing the total potential value for the SRAs to $16.6 million.

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