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French defense exports grew more than 30 percent in 2013
by Staff Writers
Paris (UPI) Jan 31, 2013


disclaimer: image is for illustration purposes only

French arms and services export contracts that came into force last year increased more than 30 percent over 2012, Defense Minister Jean-Yves Le Drian said.

The initial figure represents about $8.57 billion and covers only those contracts for which customers made down-payments.

Eight major contracts - each worth more than $272 million -- were signed in 2013, compared to three the previous year, he said. French industry also "reconnected" with traditional customers in the Middle East, which accounted for 40 percent of the in-force contracts for last year.

Asia accounted for 16 percent of the contracts, while Latin America accounted for nine percent.

France's top three clients were Saudi Arabia, Singapore and Morocco, Le Drian said.

French industry's consolidation of its core business - contracts worth less than $272 million - also contributed to the growth.

"These excellent figures illustrate our country's success on the international market, the minister said during a speech in Brest. "To make this possible, many actors, from government and industry, play an essential role. It is precisely this fielding of a mobile, tightly-knitted French team, where everyone plays a role in a process of dialogue and research, which explains these figures."

The minister's remarks came during a ceremony to mark the handover to Morocco of a multi-mission FREMM frigate by shipbuilder DCNS.

"Aside from her exception capabilities, the Mohammed VI is a very special warship for us because Morocco was the first country after France to order a FREMM frigate designed and built by DCNS," said Patrick Boissier, chairman and chief executive officer of DCNS. "We are deeply honored by this mark of confidence particularly as the Mohammed VI will be the Royal Moroccan Navy's biggest and most powerful warship when it enters service."

The Mohammed VI, optimized for anti-submarine warfare, is 465 feet long and 65.6 feet in the beam. It has a speed of 27 knots. It is the second FREMM that DCNS has built. The first was for the French Navy, which is acquiring 10 other frigates.

In other defense sales news this week, the Stockholm International Peace Research Institute released new data that showed Russian arms and military services sales in 2012 increased by 28 percent in real terms compared to 2011, while those of companies in Europe and North America on its Top 100 list decreased by 4.2 percent.

Of the six Russian companies in the Top 100, all except United Aircraft Corporation saw increases in excess of 20 percent.

SIPRI said Russian arms companies continue to maintain high export levels, but the increase in estimated overall arms sales in 2012 mainly reflects growing domestic sales as part of Russia's $700 billion 2011-20 State Armaments Plan.

"The Russian arms industry is gradually re-emerging from the ruins of the Soviet industry," said Dr. Sam Perlo-Freeman, Director of SIPRI's Military Expenditure and Arms Production Program. "Nonetheless, the industry is still plagued by outdated equipment, inefficient organization and widespread corruption, which will continue to limit Russia's ability to compete technologically with the West."

Budget restrictions in Western countries was cited as the main reason for the decline in arms and military services by Western companies.

SIPRI said sales by companies on its Top 100 were worth $395 billion in 2012.

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