The chances of Rafael Advanced Defense Systems Ltd. to supply large quantities of its Spike anti-tank missile to the French Army has recently increased, according to "Defense News". Rafael is competing against US giants Lockheed-Martin Corporation (NYSE: LMT) and Raytheon Company (NYSE: RTN) in the tender.
Until a short time ago, the Javelin missile, jointly built by Lockheed-Martin and Raytheon, was thought to be the preferred choice of France's Delegation generale pour l’armement (DGA) for the French Army's next-generation anti-tank missile. The situation in Paris has apparently changed, however.
"Defense News" reports that the French Army is seeking to replace its aging Milan anti-tank missile by 2015, four years after the original replacement date. The re-equipment was delayed in order to give time for the development of more advanced missile systems. "Defense News" quotes DGA officials as saying that it now wants to bring forward the re-equipment date by a year or two.
An executive close to Lockheed-Martin and Raytheon told "Defense News" that the DGA reportedly wants to begin procurements in 2014 or even 2013. Production of the latest version of the Javelin in the US is only scheduled to begin in 2017.
The executive said, "We can't do it by 2014," adding that one of the reasons for the change in the DGA's timetable was urging by some officials to procure Israel's Spike.
A Rafael official told "Defense News" in response, "We'll be ready." He added that the company had contacted defense contractor MBDA France SAS to collaborate on manufacture of the latest version of the Spike.
Published by Globes [online], Israel business news - www.globes-online.com - on December 3, 2009
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