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ADI Industry Briefings July 2005. 2 What we are ADI is Australia’s leading defence company ADI provides a greater range of defence technologies and services.

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Presentation on theme: "ADI Industry Briefings July 2005. 2 What we are ADI is Australia’s leading defence company ADI provides a greater range of defence technologies and services."— Presentation transcript:

1 ADI Industry Briefings July 2005

2 2 What we are ADI is Australia’s leading defence company ADI provides a greater range of defence technologies and services to the Australian Defence Force than any other Australian company ADI, through its predecessor organisations in Australia, can trace its origins back to the 1880s (Colonial Ammunition Company).

3 3 Evolution of the Company - History Naval/marine Engineering Garden Island, NSW established (1913) Small Arms/ Light Engineering Established Lithgow NSW (1912) Engineering & Vehicles Established Bendigo VIC (1943) Propellants and Explosives Established Mulwala NSW (1943) ADI Limited corporatised (1989) Colonial Ammunition Company established (1889) Software Engineering & Manufacture Acquired Universal Defence Systems Perth (1991) Munitions & Explosives Restructured this business, established Benalla VIC (1996) Electronics/ Communications Acquired Stanilite Sydney (1996) ADI privatised New owners Transfield and Thales (1999) Electronic Warfare Acquired Advanced Systems Adelaide (2001) Present Structure Naval Electronics & Aerospace Land - Ordnance Land - Engineering & Vehicles Services & Security Naval Established as large scale naval prime contractor (Minehunter contract 1994)

4 4 Joint Venture Owner - Transfield Holdings Joint owner of ADI Has developed over $6 billion of private infrastructure Major Australian private company with focus on infrastructure development and outsourcing Businesses throughout Australia, New Zealand and South East Asia One of Australia’s most successful owner/developers of infrastructure and related markets.

5 5 Joint Venture Owner - Thales Group Joint owner of ADI Main businesses: Aerospace, Defence, Security and Services Providing: Prime Contracting, Lead Systems Integration and Equipment More than $20 billion annual turnover worldwide More than 50% turnover and 50% of employees outside France Thales in Australia Turnover is $1 billion, 3,500 employees A global leader in defence systems and security

6 6 Our Competitive Edge ADI has the financial, technology and human resources to meet our Defence and commercial customers’ current and emerging requirements and to provide a long-term strategic partnering role. Capability edge in: Prime Contract Management Lead System Integration Systems Engineering Specialist Manufacture and Heavy Engineering Research and Technical Development In Service Support Through Life Support Training our people

7 7 Business Group - Naval FFG upgrade Naval shipbuilding Naval combat systems Naval in service support Commercial maritime support Marine engineering Mine countermeasures Weapons systems Naval programs

8 8 FFG Upgrade Project Upgrading the four newest FFGs to ensure they are effective against potential threats to at least 2013 New, modern combat system ADACS (Australian Distributed Architecture Combat System) Most sophisticated enhancement of Australian warships in Australia

9 9 Minehunter Ships Prime contractor Produced six world leading Minehunters for RAN Responsible for detailed design, construction, outfitting, systems integration, testing and trials In-service support

10 10 FFG Test Centre Land based test site at Garden Island First time that development of a warship combat management system has been done by an Australian company in Australia

11 11 Military Vehicles - Bushmaster 299 vehicles for ADF Developed by ADI High mobility Integrated protection against anti- tank mines, improvised explosive devices, mortar fragments and small arms fire Deployed with ADF in Timor and more recently in Iraq

12 12 Military Vehicles - HMEV Developed by ADI Operationally proven with US and Australian armies World’s fastest military tractor - up to 100km/h Equipped with front-end loader, backhoe and other engineering attachments

13 13 Specialist Vehicles - FireKing Developed by ADI Based on Bushmaster vehicle platform Currently in production for ForestrySA Has unique crew survival cabin tested by CSIRO

14 14 Marine Gas Turbine Modules for General Electric Components made for over 390 LM2500 modules ADI/GE relationship spans 15 years First module completed for new generation LM2500 and autoderivative gas turbine engine Developed jointly by ADI and GE

15 15 Ammunition Manufacture 40 main product lines including: Small, medium and large calibre ammunition Grenades and aircraft bombs New 25mm ammunition production line commissioned Technical data packs Maintained for ADI & ADF

16 16 Summary Major share of Australian defence market Strong track record in managing high technology projects Good, ethical reputation Attuned to customers’ technology needs and long-term aspirations Range of leading products and technologies Excellent technical skills base Proven strength and commitment


18 18 ADI Main Sites 16 Sites (Incl. 8 major Sites) 2,600 Staff 8 Purchasing Locations 50 Purchasing Staff 4,000 Suppliers Perth Sydney Darwin Brisbane Nedlands Garden Island City Centre Benalla LithgowMulwala Melbourne Hobart City Centre Newcastle Adelaide Bendigo Canberra

19 19 Purchasing Segments Mechanical Sub-Contracting & Lasers Mechanical Components Electrical Equipment Sub- Contracting Measurement Equipment Production Equipment Site Maintenance & Operating Human Resources Supplies Communications E-Procurement/Small items Travel Shipping & Packaging Training Hardware Software Intellectual Services Components ( Including Cables) Bare PCB’s GENERAL EXPENSES ELECTRONIC COMPONENTS INDUSTRIAL (Manufacturing) INFORMATION & TECHNOLOGY

20 20 Group Purchasing Policy Identify and develop dependable and highly efficient suppliers to obtain the right level of performance that matches our customers needs. Initiate real supplier collaborative relationship. Having key target suppliers whilst retaining a degree of diversity and openness towards the market. Achieve optimum value for all Procurement Activity by selecting products and services that meet our requirement. Competitive target suppliers will be treated fairly, information about them will be kept confidential, and their intellectual property rights will be protected. Conduct all business dealings in an ethical and professional manner.

21 21 The Purchasing Function Involvement of Purchasing at Bid Level and Conception Level Acquisition of all goods, materials and external services required for the running of the business Contribute positively to the financial performance of ADI Purchase at prices that are fair and reasonable for ADI and our suppliers Open minds on new methods and procedures for procuring goods and services Actively involve suppliers at the early stages of new products and bids Install Suppliers Performance Management Capability

22 22 Benefit of Early Procurement Involvement Capacity to influence costs Process Available technical solutions Potential suppliers Defined goals Tenders Selection of suppliers Coordination of logistics and administrative Purchasing tasks Contribution to defining a solution based on knowledge of the supplier market Synergies and common utilisation on best practices Need to divide functions of purchasing and procurement Profit centre Up Stream Cost centre Down Stream ConceptionNegotiation Admin / Purchasing

23 Amphibious Capability & Sustainment Kevin Manie – Project Director

24 24 DESCRIPTION The ADF is seeking to markedly improve the Amphibious Deployment and Sustainment Capability (ADASC) through Project JP 2048. The Project will deliver new Watercraft under Phase 3 that will integrate with the ship platform chosen in Phase 4A/4B for the two large amphibious ships It considers only existing Amphibious Ship designs, which are currently either built or under contract for construction. Two designs have been chosen; the French Landing Helicopter Dock (LHD) MISTRAL class by Armaris (DCN/Thales) and the Spanish BPE LHD from Navantia ( previously known as Izar). The delivery date for the first was originally mandated as 2010

25 25 The 2 Designs Navantia DCN/Armaris

26 26 The Need for Amphibious Capability In the Defence White Paper – “Defence 2000 – Our Future Defence Force”, the Government’s Primary Responsibility was: Ensure ADF flexibility to respond to a wide range of contingencies Ability to gain and use freedom of action Control activities on/in/under the sea, on land and in the air For this, a variety of capabilities are needed Warships, submarines, aircraft, troops and equipment and transportation options

27 27 The Need for Amphibious Capability Two sophisticated vessels for the RAN for Amphibious Deployment and Sustainment (ADAS) Part of the overall Amphibious Deployment and Sustainment Capability ADAS Ship & Crew ADAS Watercraft ADAS Helicopters & Crews ADAS Operations ADAS Support In line with Australia’s overall Military strategy To replace HMAS Tobruk, Manoora and Kanimbla

28 28 About JP2048 Phase 4A/4B c.25000 tonnes displacement when fully fitted out Ability to lift, lodge, sustain and withdraw a combined force with equipment whenever and wherever required Helicopters Vehicles Watercraft Deployment in Littoral environment Combat support centre Logistic and Medical support

29 29 Program Timeline December 2004 Ship Builders Estimating Pack Released from designers January 2005 RFQ released from Commonwealth to 8 parties (including RRDS team) March 2005 RFQ responses received for analysis August 2005 First-pass approval sought from cabinet 2H 2006 Shipbuilder RFT & Selection 2007 Begin build for Ship delivery 2010-2012

30 30 ADI – Delivering This Capability Risk Reduction Design Study Team (now ASAG) Made up of Industry representatives To provide expert industry assistance to the Commonwealth ADI Representation Project Team in place at ADI New people for a new challenge International experience Professional experts in their fields

31 ADI – Working With Industry to Deliver JP2048 Greg Parkinson Supply Chain Manager

32 32 ADI Strategy Our Role: Prime Contractor Lead Systems Integrator Partnering with industry who have experience, facilities and expertise, e.g. Forgacs (Newcastle, Tomago, Cairncross) NASSCO (San Diego, CA) Working together with Government Industry Groups Departments for State Development

33 33 Maximising The Benefit To Australian Industry Agile Prime Contractor Can best spread the benefit of this project to industry Able to draw upon skills and capacity of both traditional and non-traditionally shipbuilding companies Minimise spikes in labour demand Maximise the benefit to Australian Industry Extensive use of subcontractors around Australia Training of labour through GTO and RTO Developing facilities Creating export opportunities

34 34 Raw material to Superblock Raw Material plate Plate profile and penetrations cut Plate Prep Stiffeners welded Fabrication Block Panels welded to form 3-D structure Initial outfit started Grand Block Units assembled together Outfit further progressed Super Block Blocks and Grand Blocks brought together to form complete section of ship. Outfit advanced.

35 35 ROM Quantities 113 or 60 modules per ship (design dependant) Typical of 170 or 300 tonnes per module Maximum Navantia Module Weight – 360t Maximum DCN/Armaris Module Weight – 460t Maximum Module weight set by the designer’s shipyards Modules would be required at the build site at a rate of 1 per week on the Spanish design

36 36 ROM Quantities Approximately 120km of cabling will be installed Around 600 tonnes of piping will need to be fitted Around 12,000 tonnes of steel will be required 8000 tonnes of steel plate 4000 tonnes of steel structural items

37 37 Industry Support Requirements ADI/Forgacs will be seeking support in the following areas… Turnkey solutions for complete block assembly Modules up to 200 or 350 tonne mass (design dependant), 30m x 20m x 10m size Maximum efficient level of fit-out Pipe work, cabling, robust equipment etc. Painted Delivery to consolidation facility Engineering and Production Design assistance Demonstrable project management capability Transportation Labour Provision

38 38 Industry Support Requirements (cont.) Support to major subcontractors from SMEs Steel plate fabrication Beam preparation Ship equipment Winches Hatches Joinery Pumps Safety Equipment Paint Electrical Installation Plumbing and pipe work Pipe spool manufacture Equipment installation and commissioning

39 39 Registration Of Interest In order to ensure fair and equitable consideration of expressions of interest in this program, formal requests will be only accepted via the ADI website

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