Elbit Systems (Nasdaq: ESLT; TASE: ESLT) reported at the end of last week that its joint venture company with Thales UK, UAV Tactical Systems Ltd. (U-TacS) was awarded by Thales UK a £317 million order (over $500 million), to be performed over an eight-year period.
This order is part of the Watchkeeper program for which the UK Ministry of Defence and Thales UK signed a £700 million contract in August.
Watchkeeper will provide the UK Armed Forces with all-weather day and night surveillance in times of war, tension or during peace-keeping operations without the need to deploy troops into sensitive areas or harmful situations.
U-TacS will execute significant portions of the Watchkeeper program for Thales UK, the Watchkeeper prime contractor.
Elbit Systems is U-TacS' largest subcontractor with approximately one third of the contract's value.
U-TacS' financial statements will be consolidated within Elbit Systems' financial reports.
The majority of U-TacS' activity will be executed in the UK with a significant amount of its work sub-contracted to small and medium sized enterprises across the UK.
U-TacS is expected to employ, during the initial stages, dozens of workers, most of whom will be recruited locally. U-TacS is currently in the process of establishing its facilities in the UK city of Leicester.
In addition to executing the Watchkeeper program, Elbit Systems and Thales have agreed to jointly market tactical unmanned air vehicle (UAV)projects in other countries worldwide.
Elbit Systems president and CEO Joseph Ackerman said, "We are proud to be part of the Watchkeeper team, led by Thales UK, for one of the most prestigious and advanced UAV programs in the world. We are looking forward to additional exciting and challenging opportunities resulting from our agreement to jointly market other tactical UAV projects."
Watchkeeper will provide the UK Armed Forces with intelligence, surveillance, target acquisition and reconnaissance (ISTAR) capability based on the Hermes 450 UAV system and will be a key component of the UK's network enabled capability (NEC).
The Watchkeeper program is slated to come into service in 2010.
Published by Globes [online], Israel business news - www.globes.co.il - on Sunday, October 30, 2005