Textron Systems and Rheinmetall Canada announce C$205 Million Contract on
Canadian Forces Tactical Armoured Vehicle Program
OTTAWA, ON and SAINT-JEAN-SUR-RICHELIEU, QC, Oct. 30, 2012 /CNW Telbec/ -
Textron Systems Canada Inc., a Textron Inc. (NYSE: TXT) company, and
Rheinmetall Canada Inc., today announced a C$205 million contract for work to
be performed by Rheinmetall Canada on the Canadian Forces Tactical Armoured
Patrol Vehicle (TAPV) project.
Rheinmetall Canada will earn C$152 million during the TAPV program's
production phase - performing critical engineering and production work at its
facility in Saint-Jean-sur-Richelieu, Quebec. The contract includes C$53
million Rheinmetall Canada will earn developing Integrated Logistics Support
(ILS) products and as the primary in-service support hub for the vehicle fleet
during its service life. It also fulfills a portion of Textron's
participation in Canada's Industrial and Regional Benefits (IRB) Policy
arising from the government's purchase of 500 Textron TAPVs.
During the production phase of the TAPV fleet, Rheinmetall will perform the
critical final assembly and test of the vehicles. Rheinmetall will also
integrate essential sub-systems such as the Remotely Controlled Weapon
Station, the Vehicle Navigation System and the Driver Vision Enhancement
System. The production phase of the acquisition contract is expected to span
from July 2014 to March 2016.
Once the vehicles are fielded, Rheinmetall will provide In-Service Support
(ISS) for the entire TAPV fleet, also at its facility in
Saint-Jean-sur-Richelieu, Quebec. ISS will start with Initial Operational
Capability when the first 47 vehicles are delivered, planned for 2014, and is
expected to end in 2021, five years after the last vehicle is delivered.
"This partnership with Textron Systems is of strategic importance to
Rheinmetall Canada," said Rheinmetall Canada's President and CEO, Dr. Andreas
Knackstedt. "We are extremely pleased to work with Textron Systems
delivering state of the art equipment to the Army, and value for taxpayers'
money, while creating highly skilled jobs in Canada."
In June 2012, the Textron TAPV Team, led by Textron Systems Canada, was
selected to manufacture 500 Canadian Forces Tactical Armoured Patrol Vehicle
(TAPV) with options for up to 100 more. The TAPV contract has a value of
C$603.4 million, with an additional five-year in-service support contract of
Ottawa-based Textron Systems Canada, as prime contractor, will provide overall
TAPV program and configuration management, act as design authority for change
management, coordinate vehicle integration activities by Canadian
subcontractors, and manage the In-Service Support contract. Textron Systems
Canada will also be implementing a pan-Canadian Industrial and Regional
Benefits program designed to bring new expertise and opportunities to Canadian
"Rheinmetall Canada is a key TAPV teammate and will remain so as we deliver
the TAPV and related economic benefits to Canada," said Neil Rutter, general
manager of Textron Systems Canada. "In the coming months, we will be signing
many more agreements with other best-in-class Canadian suppliers who will help
us deliver a fleet of Textron TAPVs that will provide Canadian soldiers with
unmatched performance and protection for decades."
The Canadian Textron TAPV team also includes Kongsberg Protech Systems Canada
(London, ON) and EODC - Engineering Office Deisenroth Canada (Ottawa, ON).
As the program is ramped up, many other Canadian companies are expected to
figure prominently in the Textron TAPV supply chain.
The Textron TAPV is the most reliable and technologically advanced vehicle of
its kind. It draws on the company's more than 45 years of experience in the
design and production of armoured vehicles. The Textron TAPV will provide
the Canadian Forces with the optimal balance of survivability, mobility and
versatility, while delivering outstanding performance in the world's most
challenging environments. Extensively tested to confirm ballistic, blast,
mobility and reliability levels, the Textron TAPV has been engineered to meet
and exceed Canada's requirements.
Textron currently employs more than 2,200 Canadians at its Textron Systems,
Bell Helicopter and Kautex facilities in Canada. Textron companies have
procured approximately C$450 million in materials over the past year from
Canadian supplier companies.
For additional information visit www.textrontapv.ca, www.rheinmetall.ca and
About Rheinmetall Canada Inc.
With engineering and production facilities in Saint-Jean-sur-Richelieu and a
business development office in Ottawa, Rheinmetall Canada is renowned for its
expertise in the design and manufacturing of defence electronics, weapon
systems, and vehicle integration for both domestic and international
customers. For the Canadian Forces, the company is the prime contractor on
several key programs, including the repair and overhaul of the Leopard 2
A4CAN main battle tanks and the close area suppression weapon - the army's
digitized 40 mm grenade launcher. More information is available at
About Textron Systems
Textron Systems has been providing innovative solutions to the defense,
homeland security and aerospace communities for more than 50 years.
Headquartered in Wilmington, Mass., the company is known for its unmanned
aircraft systems, advanced marine craft, armored vehicles, intelligent
battlefield and surveillance systems, intelligence software solutions,
precision smart weapons, piston engines, test and training systems, and total
life cycle sustainment and operational services. Textron Systems includes AAI
Logistics & Technical Services, AAI Test & Training, AAI Unmanned Aircraft
Systems, Advanced Systems, Aerosonde, ESL Defence, Lycoming Engines, Medical
Numerics, MillenWorks, Overwatch, Textron Defense Systems and Textron Marine &
Land Systems. To serve Canadian customer requirements, the company established
Ottawa-based Textron Systems Canada. More information is available at
About Textron Inc.
Textron Inc. is a multi-industry company that leverages its global network of
aircraft, defense, industrial and finance businesses to provide customers with
innovative solutions and services. Textron is known around the world for its
powerful brands such as Bell Helicopter, Cessna Aircraft Company, Jacobsen,
Kautex, Lycoming, E-Z-GO, Greenlee, and Textron Systems. More information is
available at www.textron.com.
Certain statements in this press release are forward-looking statements which
may project revenues or describe strategies, goals, outlook or other
non-historical matters; these statements speak only as of the date on which
they are made, and we undertake no obligation to update or revise any
forward-looking statements. These statements are subject to known and unknown
risks, uncertainties, and other factors that may cause our actual results to
differ materially from those expressed or implied by such forward-looking
statements, including, but not limited to, performance issues with key
suppliers, subcontractors or business partners; our ability to perform as
anticipated and to control costs under government contracts; changes in
worldwide economic or political conditions that impact demand for our
products, interest rates or foreign exchange rates; and changes in foreign
military funding priorities or budget constraints and determinations, or
changes in government regulations or policies on the export and import of
military and commercial products.
For Textron Systems: Keelan Green Office: 613-231-3355 ext. 260 Mobile:
For Rheinmetall Canada: Oliver Hoffmann Head of Public Relations, Rheinmetall
AG Office: +49 (0)211-473 47 48 Mobile: +49- (0)163-33 23 660 Hoffmann, Oliver
SOURCE: Rheinmetall Canada inc.
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