Malaysia May Be Offered Updated Super HornetsArticle from http://www.bernama.com.my/bernama/v3/news_business.php?id=160687
From Mohd Arshi Daud
SEATTLE, Oct 15 (Bernama) -- The Boeing Company may have to revise its offer to sell the F/A 18-F Super Hornets to Malaysia into an updated version of the two-seater fighter jets by the time the country decides to make confirmed orders.
Business Development Director for Boeing Integrated Defense Systems' International Operations for Naval Systems David J. Schweppe said the world's second-largest defense company was currently upgrading the multi-mission jet into a more advanced F/A 18-F Block 2 from its existing form called Block 1.
Schweppe told Bernama during a Boeing Asia-Pacific Media tour in St Louis recently that the upgraded version would have more advanced radar, cockpit, targeting and other avionics system.
"Malaysia was given a proposal on Block 1. As the programme matures, the offer will likely have to be updated," he said.
Schweppe was not sure if the updated version of the Super Hornets would cost Malaysia more.
Following Malaysia's expression of interest to procure the multi-mission Super Hornets, Boeing had held extensive dialogues with the government to provide a package of the fighter jets and its weapon system in a deal worth around RM5.7 billion.
The package, submitted more than two years ago include an offset programme. Malaysia was holding back decision on the F/A 18-F as the government was committed to trimming its fiscal deficit further.
The Super Hornets, currently in service with the US Navy, has yet to register any international sales.
Apart from Malaysia, Boeing was also trying to market the F/A 18-F to several other countries that presently fly the older F/A 18-A through F/A 18-D.
"We were hopeful it (the deal with Malaysia) would closed last year. Of course it hasn't," says Jim Albaugh president and chief executive officer of Boeing Integrated Defense Systems.
"This is a deal that has been on the table for several years," he said in reference to the efforts made by Boeing to come up with an offset programme aimed at making the offer to Malaysia alluring.
"But I don't think it will get done this year and I would be very surprise if it got done next year as well," he added.
Explaining on the offset programme offered to Malaysia, Boeing Integrated Defense Systems regional director for Industrial Participation Programs Gerald D. Schmidt said it include a proposal to set up a biotechnology centre in Malaysia.
The centre, in cooperation with several Malaysian government agencies and research thrust; and Donald Danforth Plant Science Centre (a world-class plant research centre located in St. Louis, Missouri) would conduct research projects on agriculture-biotechnology. Schmidt added that the offset programme also offers opportunity for industrial collaboration such as through market assistance or technology transfer in commercially viable projects.
This might include manufacturing composite material for the Super Hornets by Malaysian companies.
"It's possible as Malaysia has good composite manufacturing capabilities at CTRM (Composites Technology Research Malaysia Sdn Bhd) and ACM (Asian Composite Manufacturing Sdn Bhd)," he said.
CTRM is the largest composite wing component supplier for the A320 series while ACM makes advanced composite panels for the wings of the 737, 747, 757, 767 and 777 aircraft.
Composites are lightweight but high performance materials used for high-end aerospace, defence and industrial applications.
-- BERNAMA