The Naval & Defence Sector


There are several global trends affecng the naval defence market. The economic slow‐down threatens defence budgets, but regional tensions are changing the dynamics of the market. What effect will market evoluons have on internaonal business opportunies for UK companies?


Brian J Thomson MacTaggart Sco


The Royal Navy remains the shop window for UK companies pursuing


internaonal business. UK defence companies need to be on‐ board the current shipbuilding projects: Type‐26, Type 31, Astute Class, future deterrent submarine or Queen Elizabeth Class. However, companies cannot survive on the UK Naval defence sector alone; growth relies on the export market.


There is global economic reliance on shipping lanes in the Indian & Pacific Oceans. Regional navies are increasing their strength to secure these routes. Territorial disputes in the South China Sea create addional tension. The primary regional focus is naval security; increasing naval defence budgets.


India is developing a three‐carrier group force. The future 65,000‐ ton aircra carrier remains an opportunity, but connues to slide to the right unl the IAC INS Vikrant is completed; perhaps we may see this project commence in 6 to 10 years. The proposed four new LPDs represent a significant opportunity for those companies prepared to engage with local industry. The fleet support ship is a current opportunity, along with addional destroyers, frigates and OPVs.


Malaysia is modernising and streamlining its navy. The three‐ship mul‐role support ship is a prospecve programme; expect confirmaon at DSA this year.


The indigenous submarine development in Taiwan is a great opportunity, second only to the Australian future submarine programme.


There is the trend towards low‐cost shipbuilding in Korea. This creates good opportunies for those companies that can form a cooperaon with a local Korean company. Small UK companies should aim below the project value of $10M to avoid offset obligaons. There is always the risk that small Korean companies will offer a product remarkably similar to one previously supplied


INS Kamorta


Society of Marime Industries Handbook & Members’ Directory 2018


33


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