Contenders need to submit plans soon (300 words)

Published: 8/30/2000

Czech companies that wish to participate in the offset business from the supply of fighter aircraft to the Czech Air Force have to submit their plans by mid-September to the Industry and Trade Ministry according to Vladimir Vetchy, Defence Minister. Making comments while visiting a North Moravian engineering and steel firms, Vetchy said that the order for 36 aircraft worth between CZK100-120 billion ($2.53-3.03 billion) will require the successful suppliers to generate offsets equal to the value of the order. However, the mainly indirect orders, could be worth 40% more in the opinion of the minister, a relatively modest multiplier compared with some recent contracts. The offsets, according to Miroslav Gregr, Czech Trade Minister, are increasingly becoming the deciding factor in a deal to be decided in mid-2001, in which the contenders, DASA, Boeing, Lockheed Martin and BAe Systems-Saab are seen as being close to each other in terms of product and package, EADS and Dassault have also submitted tenders According to Earl Godby of the Boeing Czech subsidiary, the US maker is intending to offer offsets in a number of projects including healthcare, agriculture, telecom and the defence industries. Godby supported the view of Vetchy that the 100% offset was a minimum and could be improved. Boeing is currently in discussions with a number of Czech companies concerning offsets including Skoda and Walter, and has involved some its suppliers for the F-18 in the task One of the suppliers is Messier Dowty, for whom the offset visits with Boeing have involved identifying potential producers of machined parts according to Colin Sirett, Head of Marketing. More specifically Boeing is reported to have mediated a $600,000 contract for lathes made by ZPS Zlin for Hi-Shear and another for machinery produced by ZPS for Furan, worth $168,000.

Article ID: 2039