Lockheed Martin Corp.
Northrop Grumman Corp.
) joint venture, the LONGBOW Limited Liability Company has
received a foreign military sales contract worth $51 million for
the supply of Fire Control Radars (FCRs). These radars will be
used by the Republic of Korea for the AH-64E Apache attack
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Specifically, the joint venture will offer six LONGBOW FCR
systems, spares and in-country support. Manufacturing of these
parts are scheduled to be completed by 2016 after which the
assembling will be executed at Lockheed Martin's Ocala and
Orlando, Fla. facilities, and Northrop Grumman's Baltimore, Md.
These radars are designed specifically to provide information to
a fire-control system in order to calculate a firing solution,
which means that it provides information on how to direct weapons
such that they hit the target. The radar units offer high
processing power, which contributes to substantial growth by
reducing mass and the cost of maintenance. The units also provide
automated engagements with multiple targets, irrespective of the
weather, the terrain or any obscurant in the battlefield.
The LONGBOW FCR has been facilitating Apache pilots with superior
target detection, location, classification and prioritization
capabilities. In June this year, the joint venture had received a
contract from Saudi Arabia for the supply of FCRs for their AH-64
Apache Attack Helicopter.
The aerospace and defense companies compete amongst themselves in
the information and services markets for a number of small and
large programs. With new competitors coming in, it has become
important for the U.S. pros to form joint ventures and
partnerships to mitigate the effect of cutthroat competition.
Indeed, these joint ventures are proving to be successful.
Another such joint venture, Bell-Boeing Joint Project Office
The Boeing Company
) is doing well and is continuously receiving contracts.
Recently, the joint venture received a firm-fixed-price,
sole-source contract for the supply of prop rotor gearboxes to
the Defense Logistics Agency ("DLA"). Textron's Bell Helicopter
division also announced that it has collaborated with Lockheed
Martin for the development of next generation Bell V-280 Valor
helicopters. The company also plans to disclose other members in
the coming months.
Despite the cuts in defense spending and the threat of
sequestration, Northrop Grumman and Lockheed Martin presently
look well-positioned and retain a short-term Zacks Rank #2