ADS

Tuesday, February 24, 2009

IDEX 2009 :EADS signs Abu Dhabi JV deal


EADS Defense & Security France CEO HervĂ© Guillou signed on Feb. 21 an agreement with local partner C4 Advanced Solutions with set up a joint venture company aimed at boosting the European company’s sales of systems and networks in the region.

C4 Advanced Solutions is a subsidary of Emirates Advanced Investments.The deal was intended to “open a long term relationship between EADS Defense & Security and Emirates Advanced Investments,” EADS said.The joint venture company would be a cornerstone of EADS’s strategy to transfer technology to the United Arab Emirates and pursue a policy of local “citizenship” in the regions where it seeks to boost business.

EADS wants to build up an international presence, diversifying away from its European home market. Last year, the group bought PlantCML, an American emergency response operator.
The economic crisis, however, has forced EADS to conserve its large cash holdings, which will be carefully used to help finance purchases of Airbus airliners rather than fund large mergers and acquisitions around the world.

In the Gulf region, the security priorities were ensuring telecommunications security by installing Tetra digital technology and surveillance of critical infrastructure, Guillou said. The surveillance requirement extends to national borders and maritime zones. The United Arab Emirates has awarded EADS D&S an engineering study contract worth 18 million euros on surveillance systems.

A third priority is in the traditional defense arena, consisting of large scale digital command and control systems. The joint venture agreement was intended to help develop local capabilities in this area. EADS D&S has annual sales of about 200 million euros in the region.EADS reckons it holds 80 percent of the telecommunications market in the Gulf region. Motorola is viewed as its strongest American competitor. But fellow European company Thales has also sets sights on expanding its share of systems business in the Gulf countries.

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