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Letter: Industrial Strategy, BAE Systems Air Sector Activity - Mike Mercer

15 Jan 2007

January 2007

You will no doubt be aware that it is now one year since the publication by UK MoD of the Defence Industrial Strategy (DIS), which provided transparency of the future defence requirements and set out those industrial capabilities that need to be retained in the UK.

The DIS was also clear about the challenges that lay ahead, and the need for industry to re-shape and transform itself, in parallel with the changes within the customer and armed forces. BAE Systems has responded to the challenges of DIS and continues to work closely with UK MoD to achieve cost effective solutions for the delivery of military capability.

There are already many examples of the ways in which innovative approaches to contracting, and product and service delivery, are delivering real benefit to our customers. As a supplier to the military air business of BAE Systems, I wanted to share with you some of the material that has been used for recent communications to employees within BAE Systems.

The attached article from Mark Kane appears in the current editions of our Air Systems and CS&S newsletters. It provides a useful overview of what is already happening in response to the challenges of DIS and how we are planning to meet these challenges going forward, in particular through plans for a Long Term Partnering Agreement (LTPA) between MoD and BAE Systems. (Since the above newsletters were published, BAE Systems has announced reorganisation activity which affects both Air Systems and CS&S. We have taken the opportunity to include information regarding the new Military Air Solutions (M.A.S.) business with this communication).

During 2007, BAE Systems M.A.S. will be seeking to engage further with its current and potential future supply base, to ensure a joint understanding of business requirements and the implications of transformation of the defence industry in the UK and to promote discussion on the contribution that can be made by all parties in the supply chain.

In the meantime, if you have any questions, please discuss with your usual BAE Systems contact or either of the following Supply Chain leads in our LTPA team:

Richard Hughes (01772 855866 or mailto: richard.hughes@baesystems.com )

Mike Mercer (01772 852136 or mailto: mike.mercer@baesystems.com )

Regards,

Mike Mercer

Head of Procurement - LTPA


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