CANBERRA, Australia,
July 5, 2012 /PRNewswire-Asia/ --
Electro Optic Systems Holdings Limited (ASX: EOS) has executed
agreements with Hyundai-WIA, a Korean corporation, relating to the
joint development, marketing, production and support of remote
weapon systems.
Under the agreements, Hyundai-WIA will produce remote weapon
systems [RWS] in Korea. Initially these will be drawn from
the current EOS product range, but the parties expect new and
upgraded RWS products to issue from joint development programs in
the near term, to address emerging global market
requirements. The collaboration will draw heavily on the deep
technology and production capabilities of both companies.
The EOS Defence Systems sector is concentrated on the
development, marketing, production and support of remote weapon
systems [RWS] for global markets.
Hyundai-WIA is a subsidiary of Hyundai Motor Group [HMG], a
major Korean corporation with diverse technology, manufacturing and
service businesses and with global revenues of US$99 billion [2010]. Hyundai-WIA is a HMG
subsidiary focussed on defence products and with global revenues of
US$6 billion. It is based in
Changwon, Korea and employs around 6,000 staff. It is a
leading innovator in defence products and manufacturing
technology.
The Chief Executive Officer of EOS, Dr Ben Greene, said:
"Our partnership with Hyundai-WIA, one of the world's leading
companies, will provide Korean and export customers with access to
world's best practice in defence technology, product development
and military production. Hyundai-WIA and EOS will move
quickly to establish RWS production in an existing Hyundai-WIA
plant in Korea. A key element will be pooling EOS and
Hyundai-WIA technologies in product development, quality
improvement and production engineering. We expect to achieve
more competitive products through these arrangements."
"EOS is now a major step closer to a business model adapted to
volatile global demand during a sustained period of unpredictable
government budgets. The partnering arrangements deliver
production capacity which is scalable at low cost, and
simultaneously improves production quality, market access, fixed
costs and delivery risk."
The arrangements with Hyundai are similar to those announced
19 May 2010 when EOS and Northrop
Grumman Corporation agreed to jointly develop, produce and support
RWS for the USA and certain export
markets. Those arrangements included EOS and Northrop Grumman
teaming to compete for the US Army CROWS program requirement for
RWS.
In December 2011 EOS announced
amended collaboration arrangements with the re-location of EOS' own
RWS capabilities in the USA from
Tucson, Arizona to Huntsville, Alabama. This places them
alongside those of Northrop Grumman to allow EOS and Northrop
Grumman to address even more efficiently RWS opportunities in
general, and CROWS requirements in particular. The CROWS
program award by the US Army is expected by October 2012.
EOS now has completed agreements with partners in both the
USA and Northern Asia to produce, support and enhance
its RWS products. These partners have significant investments
in scalable production capacity and the incremental cost of adding
RWS capacity is relatively small. Importantly, these plants
have the necessary infrastructure for production of modern military
equipment, including next-generation systems for quality
management, record-keeping, government accounting and supply chain
management.
EOS believes its partnering arrangements offer advantages to
both customers and partners:
- Scalability. The arrangements employ
existing large-scale, proven production facilities that are
equipped, qualified and staffed to high standards.
- Quality. Our partners have excellent
quality systems, sophisticated automation, supply chain management
and production practices. Quality will improve.
- Market Access. With production located in
key future markets, EOS gains access to those markets
notwithstanding strong requirements for local content.
- Risk Reduction. Partners which are
manufacturing specialists reduce risk to EOS, and risk in EOS
production, since EOS can focus on a smaller scope.
- Capital. The arrangements allow EOS to
undertake rapid surges of capacity with significantly less capital
required for scaling production.
- Cost reduction. The new production
arrangements reduce cost and make EOS products more
competitive.
As pressure on Australian manufacturing industry increased over
the past two years due to currency appreciation and labour market
constraints, EOS has migrated to a production approach where its
Australian plant in Queanbeyan has retained only around 65% of its
historical scope of work. EOS expects improved
competitiveness and market access will support sales growth and
offset the effect of transfer of some production activities
offshore.
Information:
Ben Greene
Chief Executive Officer EOS
Ph: +61 414 365 658
www.eos-aus.com
ABOUT HYUNDAI-WIA
Hyundai-WIA is a major subsidiary of Hyundai Motor Group [HMG],
a Korean corporation with diverse technology, manufacturing and
service businesses and with global revenues of US$99 billion [2010]. Hyundai-WIA itself
has global revenues of US$6 billion
[2011].
Hyundai-WIA is the HMG subsidiary focussed on defence
products. It is based in Changwon, Korea and employs around
6,000 staff. It is a leading exponent of innovation in defence
products and manufacturing technology.
ABOUT ELECTRO OPTIC SYSTEMS (ASX: EOS; OTC: EOPSY)
EOS develops, manufactures and sells sophisticated aerospace
technology with a wide range of applications through two business
divisions – military and space.
EOS' remote weapon systems enable a weapon to be fired rapidly
and accurately by a gunner safely relocated away from the
weapon. Typically the technology is applied for mounting
weapons on the top of an armoured vehicle, and the gunner inside
the vehicle. EOS remote weapon systems have been produced in
significant numbers for US Army, NATO forces, Australia, and other countries around the
world.
EOS' space division is as a provider of technology, products and
services to support space surveillance and space debris management,
including space collision avoidance. EOS's laser tracking
systems and computer technology can track small orbiting debris
objects with great precision – while its space ablation technology
and systems could potentially allow future de-orbiting of space
debris objects.
EOS has around 120 employees, principally based in Canberra (Australia), Tucson (Arizona), Huntsville (Alabama) and Singapore.
SOURCE Electro Optics Systems Holdings Limited
