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 C$105.4 million.
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 companies.
“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
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.
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 A4 CAN main battle tanks and the close area
suppression weapon – the army’s digitized 40 mm grenade launcher. More
information is available at www.rheinmetall.ca.
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 www.textronsystems.com.
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.
SOURCE Rheinmetall Canada inc.