BAE Systems Wins New Land Contracts in Nordic Markets

ARLINGTON, Virginia - New armored vehicle contracts for BAE Systems in Finland and Norway have taken land sales to Nordic countries above $215 million in the past two months, underpinning the strength of the company’s export portfolio.

The company has won a contract to supply 16 RG32M mine-hardened patrol vehicles to the Finland Defence Force, worth more than 6 million ($8.1 million). In addition, it has also received a $7.2 million amendment to an existing contract to enhance the propulsion and mobility of Norwegian M113 vehicles. These follow on from a contract received last month for the production of 48 Archer 155mm self-propelled artillery gun systems and their associated ammunition handling systems for the Swedish and Norwegian armed forces, worth over $200 million.

"These recent wins reflect the strong position emphasis BAE Systems’ land business is putting on exports, both of new products and to support our equipment which is already in service around the world, said Scott Leitch, vice president for business development in
BAE Systems Land & Armaments. “We have built strong relationships on key land programs with the armed forces in the Nordic region and we continue to explore opportunities to work with them further, to provide the best products and support activities for the men and women in their armed forces.”

The RG32M order from Finland, which follows on from a contract for six similar vehicles in November 2006, will be carried out by the Land Systems business in South Africa, with delivery of all the vehicles anticipated to be completed by early 2011. The order is for current standard production vehicles, including a suspension upgrade. The contract also includes an order for the new Series 3 variant, which provides for a higher payload, increased power and higher protection levels. There are currently 200 RG32M vehicles in service with Sweden’s armed forces, several of which are deployed in Afghanistan.

The contract modification for the Norwegian M113 vehicles will provide 25 upgrade kits required to convert the existing M113s to the M113E3 configuration. The upgrade kits include powerpack, suspension, weld, air conditioning and hydraulic manifold. These upgrades will supplement 72 kits which the company provided to Norway between 2007 and 2009, and as before will be supplied by BAE Systems in the USA.

BAE Systems’ suspension upgrades enable the vehicle to use rubber band tracks and provide passengers with a smoother ride. The company will also provide support to the Defence Logistics Organisation in Norway.

The Norwegian armed forces will install the kits and test the completed vehicle upgrades at its facilities in country. BAE Systems’ work is anticipated to begin in early 2010 and be complete by July 2011.

While the company’s Land & Armaments business is adjusting to lower volumes in its traditionally mature markets of the U.S. and the UK, it has a strong export portfolio with which to pursue new business opportunities in a number of other markets, including India, the Middle East and Europe.

BAE Systems’ business footprint is changing to meet the challenges of today’s defense environment but platforms and products accounted for about 40% of sales in 2009. Platforms and products are characterized by leading edge technologies and long term contracts, providing good future visibility and generating Intellectual Property Rights which helps the company capture substantial through life support business.

About BAE Systems

BAE Systems is a global defense, security and aerospace company with approximately 107,000 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 customer support services. In 2009 BAE Systems reported sales of £22.4 billion (US$ 36.2 billion).