Mar 15, 2009 21:01 UTC
Red flag to a
bull defense market
As was the case in the communist Soviet Union, China’s official military budget and real military budget are not the same thing. Many items are hidden under other ministries, or simply not reported truthfully in the absence of accountable government. Official figures are given, however, and for the last 20 years those figures have shown uninterrupted double-digit increases.
That tradition continues in 2009, as the official budget is set to rise to 14.9% to YUAN 480.6 billion (about $70.2 billion) from the 2008 figure of YUAN 417.77 billion ($58.81 billion). In 2006, the equivalent figure was $35 billion, which means the official budget has doubled over that time.
The biggest unanswered questions have to do with the differential between announced and actual figures. RAND’s Project Air Force, which has also studied China’s arms industry modernization, gave a figure of 150% – 200% difference. Other international analysts have estimated the actual budget at up to 400% of the official budget. A related question involves whether or not these differentials are narrowing or remaining stable, as a result of these continuous double-digit increases. SIPRI has side-stepped this issue by using the interesting metric of purchasing power parity, in order to derive a $188 billion figure that was just over 300% of the official total in 2008.
Any of these estimates would make China’s military budget the world’s second-largest, far outpacing competitors like India (reliable, and around $28 billion equivalent). BBC News.
Mar 15, 2009 20:08 UTC
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Guest article by Ian Cookson & Grant Thornton Corporate Finance LLC
Aerospace component M&A activity remained strong in 2008, and was one of the best performing sectors, with the same number of transactions as the record set in 2007. Activity was again weighted toward the first half of the year (in a 60/40 split), with a similar number of transactions in the second half of 2008 as 2007. Although 40% of transactions were led by private equity groups, this masks a shift in the second half where strategic buyers proved more successful in winning bids (by a factor of 3:1). Private equity buyers found it harder to raise the levels of debt that supported prices of previous acquisitions.
The strong level of aerospace component activity is in stark contrast to U.S. M&A activity as a whole, which declined by a third in volume terms from the prior year (and substantially more by value). However, the number of smaller deals across all industries (under $50 million) remained remarkably constant. It is this category of smaller deals that is more reflective of aerospace component transactions.
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Mar 15, 2009 13:09 UTC
Mi-38 dimensions
Russian Mi-8 and its Mi-17 derivative have been familiar sights for several decades, and continue to sell around the world. These helicopters are significantly larger than the American UH-60 Black Hawk family, but have about the same carrying capacity, at about half the price. They are also far more commonly armed than their American counterparts, giving them a secondary strike and fire support role that many countries find useful.
Successor designs have been hurt by funding delays, but the Russian oil and gas industry’s push toward more remote regions is creating a demand for higher performance machines. As an interim step before Russian manufacturers can field longer-range, compound helicopter designs like the Ka-92 or Mi-X1, the EuroMil collaboration between EADS Eurocopter and Oboronprom subsidiaries Mil and Kazan aims to produce the Mi-38. Improved engineering, and Pratt & Whitney Canada’s 2,500 shp PW127 T/S engine, aim to raise the helicopter’s maximum internal load from 4,000 kg to 5,000kg, and maximum sling load from 4,500 kg to 7,000 kg. While the initial target market is civil, military variants are certainly possible.
Mi-38
March 12/09: Kazan Helicopter Plant announces that they expect to receive about RUB 3 billion (approx. $85 million) in Russia’s upcoming Federal Target Program (FTP) for the development of civil aviation technology, split 50/50 between the state and Oboronprom, toward the completion and launch of the Mi-38. flight tests are scheduled to end in 2009, with serial production at the Kazan Helicopter Plant slated to begin in 2010.
Mar 15, 2009 09:45 UTC
M-Ship Stiletto
With the formal roll-out of the 88-foot Stiletto stealth ship and its cutting-edge “M-Hull” wave-damping design, the late Vice-Admiral Cebrowski’s legacy takes another step forward. The Stiletto is part of Project WolfPac, which aims to test new concepts of shallow-water and riverine warfare organized around swarms of smaller, affordable ships linked by communications. The Stiletto can slip into shallow waters, launching inflatable boats and even UAVs while serving as a communications hub via its “electronic keel.” Best of all, the M-Hull significantly reduces the pounding its occupants take from waves – poundings that often result in back injuries that cut careers short, or leave sailors with lingering disabilities in later life.
After a long, drawn-out testing period, the ship is finally being given a chance to silence doubts about its ability to stand up to open sea conditions. It is now headed out for its 2nd operational deployment, with its crew of Army mariners and Navy personnel…
- The Stiletto Program
- Contracts and Key Events [updated]
- Appendix A: M-Hull Technology – From Venice to Victory
- Appendix B: Additional Readings
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