Reuters) - Japan is in early talks with top global helicopter makers and their Japanese partners about a deal worth around $2 billion to build transport aircraft for its military that would also be sold overseas, sources with knowledge of the discussions said.
The talks, which began in earnest over the past two months, represent another milestone in Prime Minister Shinzo Abe's bid to nurture a domestic military export industry that would also bring down Japan's defence procurement costs at a time of rising tensions between Tokyo and an increasingly assertive China.
Abe has eased decades-old restrictions on Japan's military exports and is looking to give its armed forces a freer hand in conflicts by changing the interpretation of a pacifist constitution dating from Japan's defeat in World War Two.
The project, dubbed the UH-X, is meant to replace around 150 of Japan's aging fleet of troop-carrying Huey helicopters, a design by Bell that dates from before the Vietnam War. It is likely to run for at least a decade and cost as much as $2 billion, one of the people with knowledge of the process said.
Airbus Helicopters (AIR.PA), a division of the European aerospace giant, has joined with defence contractor Kawasaki Heavy Industries (7012.T), while Bell Helicopter, a unit of industrial conglomerate Textron (TXT.N), is partnered with Fuji Heavy Industries (7270.T), the maker of Subaru cars, the two sources said.
AgustaWestland, part of Italy's Finmeccanica Spa (SIFI.MI), is looking to sell Japan helicopters through Japanese trading company Mitsui & Co. (8031.T), which would be assembled by Fuji Heavy, they said.
By creating a market beyond Japan for the UH-X project, officials hope to bring down the per-unit costs of the helicopter for Japan's Self-Defence Forces (SDF), part of a bid to keep pace with China's expanding military.
"The aim is to keep costs down," said one of the people with knowledge of the project, who asked not to be named because the discussions remain private.
Japan's government sent out an early "request-for-information" from the bidders over the past two months. Officials hope to move quickly to the next stage in which the bidding companies would be asked to submit detailed proposals, including costs, the sources said.
While the UH-X project was public knowledge, the involvement of Airbus Helicopters, AgustaWestland and Bell Helicopters and their local partners had not been previously reported.
Airbus and Bell declined to comment on their intentions in Japan, while AgustaWestland did not respond to a request to discuss its business in Japan. Kawasaki and Fuji Heavy declined to comment, while no-one from Mitsui & Co was immediately available for comment.
MORE BANG FOR YOUR YEN
Japan and China have been mired in a dispute over ownership of tiny islands in the East China Sea, with tensions spiking last month when Japan said Chinese aircraft had come within a few dozen metres of its warplanes.
In the 20 years to 2012, Japan was the sixth-biggest military spender in the world, according to the Stockholm International Peace Research Institute. China jumped to second place from the seventh after it hiked its defence spending more than five-fold over the same period.
Japan said last year that it would raise its military spending by almost 3 percent over five years. But with spending constrained, Japan's military planners have turned to ways to increase the efficiency of defence spending programmes to counter China.
Industry analysts say Japan's armed forces often pay two to three times more for military equipment than other comparable countries because defence contractors are limited to fabricating small lots for the SDF.
Selling the new helicopter overseas should lower the cost paid per unit by Japan's military by widening the production base. Including foreign companies would also help spread development costs.
In a related move, Japan plans to create an arms procurement agency to streamline spending and promote military exports that merge spending by the sea, land and air forces, according to people involved in the planning.
HELICOPTER PROPOSALS
Kawasaki and Airbus Helicopters, formerly Eurocopter, which are already partners on the successful BK117 utility transport that first flew 35 years ago, are offering a new design for the UH-X, according to the sources who spoke to Reuters.
The Ministry of Defence awarded Kawasaki Heavy the UH-X contract in 2012, but cancelled the contract in March 2013 after two SDF officers said they had helped the company win the deal by leaking information on the bid.
Bell and Fuji Heavy are proposing an aircraft based on the Bell 412 utility helicopter, military versions of which are used in countries ranging from Britain to Colombia, Ghana and Thailand.
AgustaWestland is offering its 10-seat twin-engined AW169, the prototype of which first flew in 2012. Using Mitsui as its partner in Japan, the company has told the Japanese government it would recruit Fuji Heavy to assemble the aircraft under licence.
A partnership of Sikorsky Aircraft, which is owned by United Technologies Corp (UTX.N), and Japan's biggest defence contractor Mitsubishi Heavy Industries (7011.T) had initially shown interest in the UH-X, but did not responded to requests for information from the Defence Ministry, according to one of the sources. Mitsubishi Heavy and Sikorsky declined to comment.
On 28 March 2012 Kawasaki Heavy Industries, Ltd. announced that it had received an order for a new multipurpose helicopter (Part 1) from the Japan Ministry of Defense (MOD). The UH-X, a successor to the UH-1J, will be used by the Ground Self-Defense Force (GSDF) for a variety of missions including transport of goods and personnel. The UH-X will be derived from the OH-1 observation helicopter, a production model developed and manufactured by Kawasaki for GSDF. By leveraging the technological and manufacturing base of OH-1, Kawasaki aims to reduce technological risks associated with development and appropriately control life cycle costs.
Kawasaki has a solid track record of delivering various helicopters to the MOD, including the OH-1 (as the prime contractor), OH-6 and the transport helicopter CH-47. Kawasaki also manufactures the MCH-101 airborne mine countermeasures (AMCM) and transport helicopter for use by the Maritime Self-Defense Force. As for commercial helicopters, Kawasaki jointly developed the first domestically manufactured helicopter BK117 with German company MBB (Messerschmitt-Bölkow-Blohm), currently ECD (Eurocopter Deutschland). Ever since its first delivery in 1983, Kawasaki has delivered a total of 153 helicopters for a wide spectrum of applications including firefighting, disaster relief, police operations, broadcasting and emergency medical services.
By 2005 Kawasaki Heavy Industries (KHI) was preparing to offer a utility version of its OH-1 scout helicopter as a replacement for Japan's Bell/Fuji UH-1Js. KHI decided to offer the indigenous solution for Japan's UH-X programme rather than propose licence-producing a Western-developed helicopter. The company held talks with Western manufacturers interested in helping it develop a utility helicopter based on the OH-1. The design would require significant enhancements, including a new cabin, drive train, transmission and avionics.
KHI says that by 'leveraging the technological and manufacturing base of OH-1, the company it will 'reduce technological risks associated with development and appropriately control life cycle costs.' Artists impressions of the UH-X show a Huey-sized helicopter with large cabin with a four-bladed main rotor. Anti-torque is provided by a shrouded tail rotor probably similar to the system used on the OH-1.
Japan aims for its indigenous Kawasaki Heavy Industries (KHI) UH-X utility helicopter to be developed by its fiscal year 2017, which runs from 01 April 2017 to 31 March 2018. There are no plans for the Japan Air Self-Defense Force or Japan Maritime Self-Defense Force to operate the type. The performance of the UH-X will be similar to the UH-1J. It will have a passenger capacity of two pilots and 11 personnel, or a cargo capacity of 4,200lb (1,905kg). Maximum speed of the new type will be 260km/h (140kt) and the range will be the "same or longer" than the UH-1J's 480km (298 miles) range.
Separately, in December 2010 Mitsubishi Heavy Industries won a different UH-X program to replace UH-60J rescue helicopters that it built under license from Sikorsky. The Japanse UH-X program should not be confused with the American UH-X replacement for Bell UH-1H Iroquois utility helicopter. A total of 1,279 were required for procurement from FY98; specification currentlyundefined; contenders include Sikorsky UH-60X Advanced Black Hawk,Eurocopter/Vought AS 565 Panther 800 and improved/re-engined UH-1s. This American program was deferred for financial reasons.
yasotay said:Very smart move to team three largest western rotorcraft OEM with national industry. I think they are looking for more utility than just UH-X.
Commercial viabilityTriton said:yasotay said:Very smart move to team three largest western rotorcraft OEM with national industry. I think they are looking for more utility than just UH-X.
Can you please explain what you mean by "looking for more utility than just UH-X"?
Kiltonge said:Not really pushing much in advance of the UH-1J; the only apparent advantages seem to be fuel efficiency and commonality with the OH-1.
Kiltonge said:It seemed to me to be an opportunity to move to a two-squad lift capability ( 20+ troops ) with something in the class of the Super Puma or S-92.
The one-helicopter-one-squad model fits the US Army but results in insufficient capacity for nations without the means to support 2,000+ helicopters.
Triton said:Isn't KAI/Airbus Helicopters already in that space with the KUH-1 Surion?
Discussions are reportedly under way in Japan to acquire a new utility helicopter for the Japanese Ground Self-Defence Force (JGSDF). The eventual procurement cycle could last a decade and be worth around $2 billion. The ambition is to replace the 150+ Bell Helicopter UH-1H/Js utility helicopters that were manufactured and improved under license by Fuji heavy Industries.
The last UH-X program was awarded to Kawasaki Heavy Industries in early 2012, but was cancelled the following year after two GSDF officers admitted to leaking information to the bid winner. Fuji Heavy Industries had also been a competitor in the project.
Although talks are in their preliminary stages, there has only been a Request for Information (RFI) that has not yet been followed by a Request for Proposals (RFP), according to a source at AgustaWestland. But once it has, then it is likely that the company will offer one of its utility aircraft, probably the twin engine AW169, through its distributor Mitsui Bussan Aerospace (MBA). MBA has been the official distributor of the AW169 in Japan since December 2012 and for the AW139 since 2005. The gross weights of the UH-1 and AW169 are similar at around 9,000 lbs and 9,900 lbs, respectively.
The project is known as the UH-X and in addition to providing Japan’s self-defense forces with new equipment, it is also being discussed as a potential export for export. Foreign manufacturers are being consulted.
Sikorsky has a 60-year license agreement with Mitsubishi Heavy Industries (MHI) that was celebrated by both parties earlier this year. Robert (Bob) Kokorda, vice president of sales and marketing at Sikorsky said that MHI has built over 226 Sikorsky H-60s over that time (badged in Japan at SH-60s) and exclusively for use by the Japanese Ministry of Defence since 1988. “They are restricted by constitutional law [which prevents them] from exporting defense equipment,” said Kokorda. “That means that we don’t use them as [part of] our supply chain either. They manufacture everything in country and have in fact developed their own blade for their SH-60J Kai helicopter.”
Korkoda further noted that MHI had made changes to the originally licensed product and is now the airworthiness authority for the aircraft. “They have taken our base data and made their own modifications. They also did major modifications to the Sea Hawk designs. In particular their cabin size is larger. They did some incredible engineering on our original designs.” In total more than 600 Sikorsky-licensed helicopters of all types have been built for the Japan Self-Defense Forces.
However, now the Japanese government is looking to reform Article 9 of its constitution, written after World War II, which prevents Japan’s government from using war to settle international disputes. It may be possible that Japan will reform its military to allow aggressive action to protect allies or during international peacekeeping operations. Within this, it may also allow the export of military equipment such as helicopters.
Most recently, the Japan National Police Agency took delivery of its first Sikorsky S-92, and the Japan Coast Guard selected the Sikorsky S-76D for its ship-based operations. “We believe the S-76D’s legacy and versatility make it a solid solution for the UH-X program,” noted a Sikorsky spokesman.
Bell Helicopter and Fuji Heavy are believed to be preparing to offer the Bell 412 utility helicopter for the UH-X, according to a Reuters news agency report (June 10, 2014). Bell offered no comment on the story. It is also understood from the same source that Airbus Helicopters with partner Kawasaki Heavy Industries would offer a new design. Airbus corporate spokesperson Gloria Illas told Rotor & Wing that the organization “can only confirm our interest in developing our business relations with Japan in the military segment.” Due to ongoing Japanese MOD consultation, she could not comment further.
Japan picks Fuji Heavy and Bell to build new military transport helicopter
Japan has awarded Fuji Heavy Industries and Textron Inc's Bell Helicopters a $3.02 billion deal to build a fleet of military transport aircraft that would also be sold overseas.
The project, dubbed the UH-X, will over the 20 years from 2021 replace 150 of Japan's aging fleet of troop-carrying Huey helicopters, a design by Bell that dates from before the Vietnam War, a spokesman for Japan's Ministry of Defense said.
Picking a partnership of a Japanese and foreign firm to build helicopters for a local and overseas market comes after Japan last year removed a decades-old ban on arms exports.
By creating a market beyond Japan for the UH-X and other Japanese defense gear, defense officials hope to bring down the per-unit costs of equipment for Japan's Self-Defense Forces (SDF) helping it keep pace with China's expanding military.
The Fuji Heavy-Bell partnership competed for the project against rival joint bids by Kawasaki Heavy Industries with Airbus Group and AgustaWestland, part of Italy's Finmeccanica Spa with Japanese trading company Mitsui & Co, which would have been assembled in Japan by Fuji Heavy.
Artist's impression of Kawasaki UH-X.
Source:
Kawasaki announce initial order for UH-X - HeliHub.com
(Electronic translation from Japanese) Kawasaki Heavy Industries, Ltd. announced today, we received an order (1) new multi-purpose helicopter for the Ground Self-Defense Force from the Ministry of Defense. In addition, “UH-X” is, as the successor of multi-purpose helicopter of JGSDF UH-1J, the...www.helihub.com
JAPAN AEROSPACE: Subaru readies for UH-X test flight
Subaru is conducting ground tests with its developmental UH-X helicopter, and is preparing for the maiden flight of the Bell 412EP-based type.www.flightglobal.com
Artist's impression of Kawasaki UH-X.
Source:
Kawasaki announce initial order for UH-X - HeliHub.com
(Electronic translation from Japanese) Kawasaki Heavy Industries, Ltd. announced today, we received an order (1) new multi-purpose helicopter for the Ground Self-Defense Force from the Ministry of Defense. In addition, “UH-X” is, as the successor of multi-purpose helicopter of JGSDF UH-1J, the...www.helihub.com
I always assumed that Eurocopter bid an upengined EC155, much like what Korea picked for LCH/LAH.Does anyone know more about what Airbus Helicopters proposed? I heard it was at time proposed X8