BAE Systems Platforms & Services

History

BAE Systems was formed in 1999 by the merger of British Aerospace (BAe) and Marconi Electronic Systems (MES). BAe's land systems business was RO Defence, a major manufacturer of explosives, ammunition and small arms. MES owned Vickers Shipbuilding and Engineering Ltd, manufacturer of the M777 howitzer.

In June 2003, BAE Systems outbid General Dynamics for Alvis plc, the UK's principal land systems business. What had seemed a certain win for the US company was stopped by BAE Systems' surprise move. It has been seen as an attempt to keep such a strong competitor at bay in BAE Systems' "backyard." Alvis and BAE RO Defence were merged as BAE Systems Land Systems. When Dick Olver was appointed chairman of BAE Systems in July 2003 he ordered a review of the company's businesses which confirmed the attractiveness of the land systems sector. This shift in strategy was described as "remarkable" by the Financial Times.

In March 2005, BAE Systems announced the $3.174 billion acquisition of United Defense Industries (UDI). UDI, a major competitor to General Dynamics, was primarily a land systems manufacturer, boosting BAE Systems' involvement in this sector and its sales in the important North American market. UDI manufactured combat vehicles, artillery systems, naval guns, missile launchers and precision guided munitions.

BAE Systems Land and Armaments was formed in June 2004 in a reorganisation of BAE's businesses. Land and Armaments, headquartered in the United States as part of BAE Systems Inc., took control of BAE's existing land systems businesses.

Land and Armaments has received regular contracts for the "reset" of Bradley armoured fighting vehicles. By August of the 2006 financial year BAE had received contracts totalling $477.9 million.

In July 2008, BAE failed to win the $1.06 billion MRAP All Terrain Vehicle (M-ATV) contract which will see 7,244 vehicles produced for the US Marine Corps. In September 2009, BAE lost a larger contract, the first stage of a multibillion-dollar follow-on order for up to 23,542 trucks as part of the Family of Medium Tactical Vehicles programme. Despite a successful appeal forcing the US Army to reevaluate the bids, Oshkosh Corporation was confirmed as the winner of the £2.3 billion contract in February 2010. BAE announced a £592 million writedown of the former Armor Holdings business as a result.

Sector history

Upon its creation on 2 January 1985, Royal Ordnance plc owned the twelve Royal Ordnance Factories (ROFs) that remained open, plus the Waltham Abbey South site, RSAF Enfield and three Agency Factories. Several factors delayed the intended privatisation until 22 April 1987, when British Aerospace purchased the company.

In 1999, British Aerospace merged with Marconi Electronic Systems, the defence interests of GEC to form BAE Systems. In 2002 Heckler & Koch was sold to Heckler and Koch Beteiligungs GmbH. In 2004 BAE Systems acquired Alvis plc which was merged with the RO Defence business and ex-GEC plants at Barrow-in-Furness and Leicester to form BAE Systems Land Systems. RO Defence was renamed BAE Systems Land Systems (Munitions and Ordnance).

Products

GCS Munitions manufactures 4.6×30mm, 5.56×45mm NATO and 7.62×51mm NATO small arms ammunition, mortars, and land and sea artillery ammunition. It also produces explosives, guidance kits, propellants, demolition charges, initiators, pyrotechnics, and warheads for missiles, torpedoes and depth charges. These include the BROACH multi-stage warhead produced in partnership with Thales Missile Electronics and QinetiQ.

GCS Vehicles

Global Combat Systems Vehicles produces and supports main battle tanks, infantry fighting vehicles, armoured engineer vehicles, armoured all-terrain vehicles and military bridging vehicles. Examples include the Challenger 2 main battle tank and the CV90 infantry fighting vehicle family.