Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Lockheed teams up with more German firms on military helicopter bid

Published 04/18/2018, 04:53 AM
Updated 04/18/2018, 05:01 AM
© Reuters. Lockheed Martin's logo is seen during Japan Aerospace 2016 air show in Tokyo

By Andrea Shalal

BERLIN (Reuters) - Lockheed Martin Corp's (N:LMT) Sikorsky has partnererd with more German firms in its bid to win a 4 billion euro ($5 billion) heavy-lift helicopter contract from Berlin, and will showcase the industrial team at next week's Berlin air show.

"This shows how important this campaign is to us. We believe it's a must-win," Beth Parcella, who heads international sales for the Sikorsky program, told Reuters on Wednesday.

The U.S. weapons maker's new Sikorsky CH-53K King Stallion helicopter will make its global debut at the Berlin air show with a "very compelling flight demonstration," Parcella said.

The CH-53K , which the U.S. Marine Corps expects to declare combat-ready in 2019, will vie with Boeing Co's (N:BA) CH-47 Chinook to replace Germany's aging fleet of CH-53G aircraft.

Sikorsky said it is adding to deals already struck with Rheinmetall (DE:RHMG), MTU Aero Engines (DE:MTXGn) and Hensoldt Sensors AG, by including ZF Luftfahrttechnik GmbH, Autoflug, Hydro Systems KG, the German unit of Rockwell Collins (N:COL), Jenoptik Germany (DE:JENG), Liebherr and Rohde & Schwarz.

The German defense ministry plans to issue a request for information in the second half of 2018 and award the winning bidder a contract in mid-2020, for deliveries to start in 2023.

Lockheed, in collaboration with Airbus-owned (PA:AIR) European missiles group MBDA, Britain's BAE Systems (L:BAES) and Italian group Leonardo (MI:LDOF), is also negotiating with Germany's defense ministry on the TLVS missile defense system.

And the company is hoping to sell Germany dozens of F-35 fighter jets to replace older Tornado fighters.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Parcella said it was possible personnel changes in the German defense ministry and procurement agency could stall the program, but said it made sense to quickly replace the existing CH-53G fleet that has been flying for over 45 years.

"The legacy fleet will only become more expensive (to maintain) as time goes on," she said.

Some German military officials favor the Boeing CH-47, which is flown by eight other NATO countries, but others say the larger CH-53K would allow growth in future missions.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.