Chris Jasper/LONDON
Fast-expanding Thomson-CSF and South Korea's Samsung Electronics have launched their new defence equipment venture. French giant Thomson has also completed its takeover of Shorts Missile Systems (SMS) and signed a new naval partnership, but reports linking it with a bid for UK reconnaissance pod specialist W Vinten have been denied.
Although technically a 50:50 joint venture, the new South Korean entity, based in Kumi, will take over most of Samsung's defence business.
Thomson will contribute only advanced manufacturing technology and handle global marketing.
The business will centre on the "Chonma" (Pegasus) ground-to-air missile programme and will aim to develop South Korea's overall missiles capability, seen as vital to its defence against the North. Reports from South Korea say the venture will cover electronic imagery, military and satellite communications, fire control systems, radar guidance equipment and fibre optics.
Thomson, meanwhile, has completed its purchase of the 50% of Belfast-based SMS from Bombardier, giving it full control. The business is expected to be renamed. It has also announced a 50:50 venture with French shipbuilder DCN for the export of naval systems.
Thomson recently agreed to buy Racal Electronics for £1.32 billion ($2.16 billion), a move which will make it the biggest UK defence concern after BAE Systems, and has taken 50% of Australia's ADI.
The company reported strong financial results for last year. Sales rose nearly 12% on the previous year, to €6.9 billion ($6.95 billion), and orders of €7.9 billion, up 12.5%. Military sales accounted for 55% of turnover, aerospace for 20% and industrial electronics and services for 25%. Domestic business accounted for 32% of revenue, the same as for the rest of Europe, with the rest of the world generating 34%. No profit figures have been released.
Source: Flight International