Selex is the new name for the defense electronics division formed by Finmeccanica just three weeks ago as the second largest entity in its field in Europe and the sixth largest in the world. Encompassing such well-known names as Galileo Avionica, AMS and Selenia, Selex has 3 billion euros in revenues and employs 19,000 staff mainly in Italy, Germany and the UK.
The new group, which defines its specialties as avionics, communications, integrated systems and security, along with AgustaWestland and the Space Alliance (formed recently with Alcatel), represents one of the three cornerstones of Finmeccanica’s strategy of growth, international expansion and consolidation in main areas of excellence.
Beachhead in the U.S.
“The U.S. market is a tremendous opportunity,” says Maurizio Tucci, CEO of Selex Communications, but getting into it is another matter. “The best way to open the door is to work as a subcontractor,” starting small and then asking for more and more, he told Show News.
“We plan to be more aggressive with exports. We will develop core products ourselves and then make every effort to provide a full range of solutions through alliances and partnerships.” Tucci is particularly proud of Selex Communications’ win on Northrop Grumman’s E-2D Advanced Hawkeye, for which it provides the HF radio. “We fought like mad at Northrop Grumman and provided a prototype,” he said. “The competition was really tough.”
Another product seen as key to the U.S. market is the Laser Obstacle Avoidance System (LOAM) to protect helicopters against wirestrikes. It is just being installed on an Italian NH90-TTH and an export EH101 for Denmark, and will likely be fitted to the US101 Presidential helicopter. Tucci is seeking partners in the U.S. to promote LOAM with the U.S. military.
Selex Communications is the only country in the world working on IFF Mode 5, which includes an encrypting computer. A prototype system is currently under test with the U.S. Navy, Air Force and FAA, and with the Italian Air Force. The upgraded IFF will reduce the risk of casualties from friendly fire compared with the current NATO standard Mode 4 IFF.
Consolidation into Selex should facilitate taking on the U.S. market as one focused, multi-skilled powerhouse instead of on a fragmented, uncoordinated basis.
Selex defense electronics comprises four elements:
Selex Sensors and Airborne Systems, owned 75% by Finmeccanica and 25% by BAE Systems: SSAS controls the group’s avionics businesses of Galileo Avionica and Selex Sensors and Airborne Systems Ltd. Pro forma revenues for 2004 were 1.58 billion euros.
Selex Communications, the former Selenia Communications supplier of advanced communications and information systems, which now incorporates the former BAE Systems’ military and secure communications arm. Pro forma revenues for 2004 were 895 million euros.
Selex Sistemi Integrati, which is the new name for AMS Spa. With the return of the Italian assets from the former joint venture with BAE Systems, SSI is a world leader in systems and sensors for land, naval and air defense applications, and air traffic planning, management and control systems. Encompassing the air traffic management and air traffic control operations acquired from BAE Systems in the UK, along with Gematronik in Germany and ASI in the U.S., its pro forma revenues for 2004 were 616 million euros.
Finmeccanica subsidiary Elsag, which will be merged into the new Defense Electronics division. Elsag’s expertise is in IT and systems integration in the field of security.
