Rafael Armament Development Authority Ltd. and Lockheed Martin Corp. (NYSE:LMT) are competing in French and Spanish tenders for helicopter-launched antitank rockets. The tenders are worth an aggregate $500 million. Rafael is offering its Spike-ER extended range multi-purpose missile system and Lockheed Martin is offering its AGM-14 Hellfire 2 missile. The missiles will be used by the Eurocopter Tiger.
Rafael is heading a consortium that includes Santa Barbara Sistemas of Spain, a subsidiary of General Dynamics Corp. (NYSE:GD). Defense sources told “Globes” that they believed that Rafael had a good chance of winning the $230 million Spanish tender, but that France would probably prefer the Hellfire 2.
The company winning the two tenders could become the exclusive manufacturer of antitank missiles for NATO countries.
Discussions between the Rafael-led consortium and Spain’s Ministry of Defense led to a proposal for Rafael to supply 2,600 Spike missiles beginning in 2007. Under the deal, Rafael would delegate work to Santa Barbara Sistemas and other Spanish companies in the hope that a contract would be signed by the end of 2006.
The Spike-ER has a range of 6-8 kms. It is derived from the Spike antitank missile originally designed for the infantry. Rafael has already sold the Spike to four European countries - Finland, Netherlands, Poland, and Romania - as part of a consortium with German companies.
Published by Globes [online], Israel business news - www.globes.co.il - on November 15, 2006
© Copyright of Globes Publisher Itonut (1983) Ltd. 2006