Meggitt Defense Systems

Source: Exec Digital Canada

Date :4/11/2008 4:58:49 AM

With NATO’s war on anti-terror and Canada’s increased defense spending, it is a fitting time for Meggitt Defense Systems to expand, as Bob Palmer explains

Written by Rebecca Waters & Produced by Rich Gentile

With Canada spending the most on defense since the Second World War, it is an opportune time for Meggitt Defense Systems to grow its Canadian operations. “Canada is really procuring a lot of defense products,” says Bob Palmer, Senior Vice President Business Development and Government Relations.

“If you are going to be in the defense business, your country has to be involved in defense spending otherwise there are no contracts. This is why it is an exciting time in Canada. They are committed now to supporting NATO on the anti-terror stuff. So they are building up and buying all new state-of-the-art equipment.”

Core business

Meggitt Defense Systems (formerly called Schreiner Target Services Canada) has a long and complicated history. The original company was established in 1983 as part of Boeing before being sold to Bristol Aerospace in 1992 and subsequently being split in 1998. Bristol Aerospace was then acquired by Magellan Aerospace, who in turn was purchased by Schreiner Aviation. In 2004, the Schreiner’s core business was acquired by UK- based company Meggitt Group Plc.

“At that time Meggitt Defense Systems was probably number one in the world in aerial target drills. We in Canada were number one in ground and sea platforms. So by Meggitt acquiring us it gave them the technology that made them number one in the world in target systems,” Bob explains.

Part of the Meggitt Group, which specializes in aerospace equipment, high performance sensors, defense training and combat systems; Meggitt Defense Systems specializes in combat systems (Meggitt Defense Systems) and weapon training (Meggitt Training Systems Canada) used by militaries and security agencies around the world - including blue chip customers Boeing, EADS and Raethon.

The global company designs, develops and manufactures integrated virtual and live fire training solutions; free-flying, towed and glide aerial targets; unmanned vehicles; electronic scoring; medium and large caliber linear linkless and compact unloading ammunitions handling systems; environmental control systems; pods; countermeasure systems; and rugged zed fiber-optic cable.

Development programs

“Although we are a small company in Canada, we have had some major contracts where we’ve used the major names like Boeing, EADS, Raethon as a sub-contractor to us. So we’re used to working with the major OEMs on major development programs,” says Bob. This will be leveraged by the expansion of its Canadian operations. The firm already has two locations in Medicine Hat, Alberta and Montreal, Quebec.

“The main thing to grow in Canada is by working with OEMs to try and capture some of the industrial research benefits (IRBs). Because the type of product that Canada is buying there’s not really much available in the direct IRBs. Instead Meggitt Defense Systems is looking at indirect IRBs, where they will work together with the OEMs to develop platforms.

Hammerhead

“We had contracts here steadily for targets for over 25 years. If you’ve been doing contracts for that time, you’re giving proper services and you’re cost effective. So we’ve got an excellent track record for developing products,” Bob affirms.

Currently, the Meggitt Defense Systems is developing the FIAC (Fast Inshore Attack Craft) threat called Hammerhead. In recent years navies have become increasingly concerned by the threat of ‘asymmetric’ swarm attacks by small boats or FIACs. The Hammerhead unmanned surface vehicle can be pre-programmed to simulate a multi-FIAC swarm scenario, using 16 surface vehicles simultaneously. “Before it was not a case of not doing it, no one had the technology at the time to control 16 targets at the same time,” Bob stresses.

Ground vehicles

Meggitt Defense Systems works closely with the R&D Centre on is MATS (Multi-Agent Tactical Sentry), basically an unmanned ground vehicle to detect chemical, biological, radiological and nuclear (CRBN) containments.

Developed by the Defense Research & Development Center Canada (DRDC), the company was contracted out to help with the manufacturing and final systems integration and delivered it to the Canadian army who are using them now.

“It provides surveillance,” Bob describes. “This is a vehicle that you can use for perimeter defense, if you think there are chemicals or biological chemicals in the field then you can drive your vehicle out and it will send the information back.”

Defense sharing

One of the strategic areas the company is looking to capitalize on is the Canada-U.S. Defense Production Sharing Agreement. The agreement, developed in the 1950s involving mutual defense of North America, and the concordat that Canadian industry should participate in the development, production and supply of US DoD requirements.

“What it does is it gives us the technology to keep us abreast of things,” says Bob. It gives us an entry into a product line because that’s where your development program if successful goes into production,” he continues.

Bricks and mortar

People innovation is the main attribute to Meggitt Defense System’s continuing growth. While it is a small operation, with about 60 highly-skilled employees over the Medicine Hat and Montreal facilities, the Canadian base brings in about $1½ -2 billion a year, which is why Meggitt Defense Systems is expanding there.

“Expanding is not a problem for us, we have the financial resources within Meggitt; it’s just a case of bricks and mortar facilities.”