HENSOLDT

locations

Ulm site

Stronger together

A new chapter
begins

1 plus 1
equals more than 2

MENA
challenge south of
the Mediterranean

"Yes we can"

Tapping into
new markets

Asia-Pacific
goal of considerable revenue growth

Growth and series production – this is the principle by which HENSOLDT has completely transformed radar production at its Ulm site, moving from a focus on individual projects with sometimes extremely small quantities to standardised series production. As a result, output has multiplied and customer waiting times have been slashed.

When Henry Ford introduced the assembly line and revolutionised automotive production in 1913, business flourished. The car became a mass product and series production a synonym for productivity.

HENSOLDT has also made the shift to series production. For a manufacturer of highly sensitive high-tech products, this is necessarily quite different to mass production in the automotive sector. However, converting the four main products in the radar sector from laborious single-piece production to an assembly line setup still represents a massive step towards industrial-scale manufacturing for HENSOLDT, too.

Fundamental change

Global growth means more for HENSOLDT than simply breaking into new markets, developing new products and acquiring companies. The strategy also includes integrating new products into the current portfolio and then standardising them.

In recent years, for example, the four main products in the radar area – TRML-4D (ground) and TRS-4D (naval) air surveillance systems, Spexer 2000 ground surveillance radar and ASR airport surveillance radar – have been gradually consolidated within product families with a common product core and prepared for series production. Eurofighter radar antennas are also to be produced in larger quantities in series production in the future.

Hall 31 – synonymous with productivity

Sounds simple, but it is not. After all, the new manufacturing concept involves much more than just production in series. Future products also have to be designed with a view to possible series production and the sales team has to deliver the forecasts and obtain the orders needed for the envisaged production rates. Then there is production itself. Logistics and storage measures defined by employees in working groups so as to ensure the flow of materials also have to be implemented and adjustments or even fundamental changes to work processes are required.

In this context, our hall 31 in Ulm was extensively reconfigured – now encompassing a floor space of around 2,100 square metres, this is one of HENSOLDT’s largest production buildings at its Ulm site. Everything was in place by early 2019: jobs that had previously involved activities across the entire site were consolidated and reorganised based on a process developed by the employees themselves. Series production could begin.

Higher quantities – shorter waiting times

The benefits are already fully clear. A new Spexer 2000 leaves the factory every week, manufacturing of the TRS-4D has increased significantly and series production of the new TRML-4D has begun.

Progress is also being made in preparing series production of the new Eurofighter radar. A total of 30,000 transmit-and-receive modules alone, main components of the Eurofighter radar antenna, are expected to be produced per year in the future. All in all, our target is that up to 100 complete radar systems will leave the new series production facility each year over the next few years – an impressive rise in production volume.

Thanks to the modular design, the radars can also be customised more quickly and we aim to thus cut customer waiting times notably. While the lead time for an ATC radar was previously several months from order placement, we now work towards beginning acceptance testing with the customer and to deliver radars as soon as possible after the integration.

But this is only the beginning. Over the coming years, HENSOLDT intends to extend series production to include other sensor product areas as well. In this way, this high-tech custom manufacturer is gradually being transformed into a high-tech series producer.

The four main products

France has always been one of HENSOLDT’s key markets. The acquisition of NEXEYA, the French expert in aviation, defence, energy and transportation electronics, bundles know-how and sustainably strengthens HENSOLDT’s market position even beyond France’s borders.

If two partners simply match. If they share the same values and have a common customer and partner base. And if, moreover, their products have not previously competed with one other, but rather complemented each other. Then you could speak of a ‘perfect marriage’. And this is exactly what has taken place between HENSOLDT and NEXEYA.

Five sectors – one common goal

Since its foundation in 1997, then named Eurilogic, NEXEYA has developed into a respected specialist in electronic security solutions, both in the non-defence and defence sectors, and consistently grown even beyond the borders of France. Its current focus is on aviation, defence, energy conversion, electrical installation safety and transport.

HENSOLDT’s acquisition has created a new heavyweight in the high-revenue French market. Together, the two companies intend to significantly expand their industrial and technological base in the defence and non-defence sectors. New, innovative solutions are to be developed, significant growth to be achieved in the midterm and customer demands to be met to the best possible extent.

More expertise

HENSOLDT is setting up a new competence centre for the whole group in France that will also contribute to this. Its focus will be on Command and Control/Combat Management Systems (C2/CMS), robust onboard systems and test benches, mainly hydrogen-based solutions for energy supply optimisation and electronics maintenance.

After the NEXEYA transaction, the new HENSOLDT Holding France is made up of HENSOLDT France and NEXEYA France. They share operational business in two new operational units: ‘Défense et Sécurité’ (defence and security) and ‘Aerospace et Systèmes Civils’ (aerospace and civil systems).

Mutual benefits

NEXEYA system and service solutions and HENSOLDT sensors together with the complementary know-how and size of both companies will make it easier to enter new markets, develop comprehensive solutions for customers worldwide and explore new business areas.

Focus on the customer

From the outset, it has been written into NEXEYA’s DNA to provide innovative solutions with high value for the customer. Currently, the focus is on the following areas:

Aviation

NEXEYA develops and markets products for testing avionic and electrical networks (validation, integration, fault location), special tools for production lines and on-board power conversion equipment, from prototypes through to the operation and maintenance phases of civilian and military aircraft.

Defence

With its LYNCEA (ship-based battle management systems) and ARGOSIA (airborne systems for command and control of maritime surveillance and ISR missions) mission management systems, NEXEYA perfectly complements HENSOLDT’s identification systems (IFF) and datalinks for the defence sector.

Energy conversion

NEXEYA develops and produces systems that manage, store and supply hydrogen-based electricity from renewable energy sources in line with the energy policy requirements of our time. The energy conversion technologies in particular can even be integrated into existing HENSOLDT products to increase their performance (see chapter HENSOLDT innovations: Energy – anytime and anywhere).

Safety of installations

With digital control systems, data acquisition and monitoring systems, high-performance power supply systems and modular power supply solutions, NEXEYA meets nuclear safety standards and ensures the safety of electrical installations.

Transportation

From trams and subways to high-speed trains, NEXEYA’s train control and electrical distribution systems increase transportation reliability and safety. In addition, the company develops integrated solutions and energy conversion products in the automotive sector for the electric and autonomous e-mobility of the future.

HENSOLDT UK was established following the acquisition of Kelvin Hughes, a long-standing British company, in 2017. All of HENSOLDT’s activities in the United Kingdom are now consolidated under this brand and all of the products in HENSOLDT’s portfolio can be offered in the UK market by a local company, for example to the Ministry of Defence and others. This has opened up new business opportunities.

Tradition is writ large at the UK radar manufacturer Kelvin Hughes. After all, the company has been in existence since the 18th century and its products have included sextants and marine chronometers. The first commercial radar was produced in 1948 based on technology developed during World War II. The company began supplying radars to navies around the world in the late sixties. Since then, Kelvin Hughes has equipped over 30 navies all over the world with state-of-the-art radar technology. A new chapter in the company’s eventful history began in 2017 through its acquisition by HENSOLDT and renaming as HENSOLDT UK.

From the UK for the global market

The establishment of HENSOLDT UK means more than the proverbial killing of two birds with one stone. The integration of Kelvin Hughes into HENSOLDT allows for mutual exchange of products and customers. This means that Kelvin Hughes’ costeffective and yet highquality product range can now also be offered to existing HENSOLDT customers. At the same time, HENSOLDT has gained access to former Kelvin Hughes customers, including the UK Ministry of Defence. And, with the Kelvin Hughes site in Enfield, HENSOLDT is expanding its industrial presence in the UK, and thereby strengthening another important and strategic key market and opening up new business opportunities.

Integration into the HENSOLDT family

While processes and procedures were aligned and mainly replaced by those of HENSOLDT in the initial integration phase, product and system integration has now begun. This involves reaping synergies in relation to the Xpeller counter-UAV activities and integrating the battle management systems of NEXEYA acquired in France, which are to be further developed together with those of HENSOLDT UK.

HENSOLDT UK’s products have been divided into two lines – Security Solutions and SharpEye Radar. Both will now be integrated into HENSOLDT’s IFF radar product line.

“We are expanding in the UK and merging our existing product range with the Kelvin Hughes offering. This will allow us to create complex system solutions that will significantly drive our business in this market.”

Thomas Müller, CEO HENSOLDT

“Kelvin Hughes and HENSOLDT have shaped the radar market for seven decades. By consolidating our products under one brand name, we are increasing our visibility in the market and opening up new business opportunities.”

Russell Gould, Managing Director HENSOLDT UK

More than 70 years of experience, over 600 South African employees, two exceptional local business units and one global market – GEW and Optronics merged under the new HENSOLDT South Africa (SA) brand in 2019 and will embark on a shared success story going forward.

Sometimes you need to leave your comfort zone in order to start a new chapter and confound the mathematics. So it was with HENSOLDT in South Africa last year. GEW and Optronics, two companies rooted in the local market for decades, have established a joint organisation under the new HENSOLDT SA brand. And one plus one equals more than two in this instance: the joint venture gives HENSOLDT an even higher profile in the South African and other African markets, while at the same time the global market for defence and security solutions is now also benefiting from the expertise of a new global player based in South Africa.

A look back

GEW in Pretoria has been considered a technology pioneer in innovative signal processing, spectrum management, and security products and systems for more than 50 years. Surveillance and direction finding, electronic countermeasures and frequency management applications developed and produced inhouse by GEW protect civilians, armed forces and infrastructure far beyond South Africa’s borders.

HENSOLDT Optronics founded this South African subsidiary in Irene more than two decades ago, which has focused ever since on the development of airborne targeting and surveillance solutions for defence and security applications. Helmet displays for pilots, laser rangefinders and parts of HENSOLDT’s submarine periscopes are also produced in South Africa.

Officially operating within one joint organisation since September 2019, the employees of both formerly independent organisations have had an eventful time as HENSOLDT SA within a very short period. While both business units work independently within HENSOLDT’s Spectrum Dominance & Airborne Solutions and Optronics divisions, they are building a vibrant new organisational culture as a united HENSOLDT team.

A look ahead

HENSOLDT SA is expanding its position as a heavyweight in the national and international market for defence and security authorities with applications for ships, submarines, ground vehicles, helicopters and jets. The company plans to now extend the business of the two business units Optronics (part of the HENSOLDT Optronics division) and GEW (part of the HENSOLDT Spectrum Dominance & Airborne Solutions division). This includes expanding HENSOLDT’s Radar, IFF & COMMS division by establishing a dedicated business unit in South Africa, with the goal to make HENSOLDT SA the leading South African provider of sensor solutions.

With additional investment and the creation of development, service and sales jobs, the company plans to tap into new markets from South Africa in the future. As part of its overall strategy, HENSOLDT SA wants to establish itself as a strong brand and become the leading provider of defence electronics solutions and products in South Africa and beyond.

HENSOLDT South Africa portfolio

The Middle East and North Africa, or MENA for short, has often witnessed and is still facing certain security challenges. Proven and new partnerships are opening up opportunities for HENSOLDT to develop its business activities there.

With its own offices in Abu Dhabi, Saudi Arabia and Turkey, HENSOLDT’s activities in the Middle East are currently focused on sales. Despite a strongly competitive environment, ministries of defence and the interior in the different countries rely on the quality of various HENSOLDT solutions to protect their national interests, the security of their infrastructure and the safety of their populations.

In particular, the electronic warfare and security systems of GEW, which has been part of the new HENSOLDT South Africa since 2019, have enjoyed a good reputation in the region for many years. There is also major interest in almost all of the HENSOLDT Group’s product portfolio, especially the company’s latest technology.

Cooperation, partnerships and joint ventures are expected to ensure the necessary local presence in the years ahead.

Secure borders

Algeria borders Niger, where the jihadist terrorist group Boko Haram is still causing unrest. The German Foreign Office has expressly warned against travel to Niger. In order to contain weapon and people smuggling in particular, we at HENSOLDT support Algeria in border security.

Vehicles, pedestrians or low-flying objects are automatically detected and can be observed day and night.

Networked via software, the radar, optronics and radio systems involved offer an integrated solution for protecting large swathes of Algeria’s border.

Successful start in North Africa

The joint venture set up in Algeria in 2014 is one shining example of this. HENSOLDT indirectly holds 49 per cent of this joint venture, SCAFSE (Société Commune Algérienne de Fabrication de Systèmes Électroniques), while other shares are held by an Algerian stateowned company and a local computer company. The joint venture has enabled HENSOLDT to set up its own production facility in Algeria. The products manufactured there are making an important contribution to maintaining security in the region as Algeria is considered an anchor of stability in the Maghreb.

This means that a partnership that benefits all parties involved has developed in the best spirit of a joint venture. HENSOLDT has gained access to the market and already generated a substantial revenue with radars and optronics over the years. In return, Algeria has obtained urgently needed expertise and thus can train local employees and secure its own borders (see box: Secure borders).

New joint venture in Saudi Arabia

The activities in Algeria thereby provide an almost perfect blueprint for another joint venture currently in the pipeline in Saudi Arabia. HENSOLDT signed a memorandum of understanding with the stateowned company SAMI (Saudi Arabian Military Industries) regarding this in December 2018. As part of Vision 2030, established by the Saudi Crown Prince Mohammad bin Salman and published in 2017, one of SAMI’s objectives is to facilitate local manufacturing and development by foreign companies.

To simplify matters, HENSOLDT plans to establish the joint venture in 2020 with 49 per cent of the equity interests being held by HENSOLDT South Africa. Orders will then be won and executed using the knowledge transferred on a step-by-step basis. Some of the negotiations regarding the products and systems that might initially be brought into the joint venture are already nearing conclusion.

Further expansion planned

And that is just the beginning. In the medium term, HENSOLDT also plans to establish its own subsidiary in Saudi Arabia. Furthermore, Pakistan is on the list of countries in which the company plans to open a site.

After all, HENSOLDT products are not only well known in the MENA region but are also highly valued for their technology and quality.

With the foundation of the US subsidiary HENSOLDT Inc. in Virginia, HENSOLDT is on track to expand in the US as well.

The US defence market is the largest in the world. Controlled from the Pentagon in Washington, DC, it accounts for approximately 60 per cent of global defence spending. HENSOLDT Inc., operating under a Special Security Agreement, gives HENSOLDT increased access to highly protected US military forces and authorities in an exciting and new way. Through HENSOLDT Inc., the US military now has the opportunity to acquire HENSOLDT products and learn more about the company’s exceptional engineering expertise.

The first step is always the hardest

Strict procurement and security rules had proven the biggest obstacle to date to HENSOLDT gaining access to the US market as a non-US company. The HENSOLDT Group has thus invested a great deal in establishing HENSOLDT Inc., and with Ken Loy as CEO and a Board of Directors based in the US, it can now cooperate directly with US customers on strictly regulated and secret programmes. As a subsidiary of the HENSOLDT Group, HENSOLDT Inc. complies with the parent company’s policies and procedures and works closely together with its Sales, Production and Customer Services units. Colleagues on both sides of the Atlantic have worked hard to establish HENSOLDT Inc. by setting up new cooperation practices and meeting the US regulatory requirements.

The situation looks good

HENSOLDT has already been able to make an initial name for itself in the US with the delivery of the TRS-3D radar to the US Coast Guard and the TRS-4D radar to the Lockheed Martin defence company and the US Navy. Nevertheless, it plans to further increase awareness and hone its brand profile. In addition to the company’s new US website, online since 2019, its presence at major trade fairs and exhibitions in North America is also contributing to this. For example, HENSOLDT Inc. was represented at Canada’s global defence and security trade show CANSEC, the National Symposium of the SNA (Surface Navy Association), the Heli-Expo and SOFIC (Special Operations Forces Industry Conference). Moreover, HENSOLDT Inc. has presented TwInvis to the US Federal Aviation Administration, expanded the LCS and NSC programmes, forged new connections with the offices of the Army’s ground vehicle programmes and expanded its relationships with key US partners in the areas of air traffic management and security solutions and in aviation markets.

For 2020, additional campaigns for individual product groups are planned, which will aim to increase awareness of HENSOLDT’s comprehensive portfolio.

Enormous potential

Enormous potential

The US Department of Defense has shown interest in HENSOLDT’s ‘Detect and Protect’ solutions in the past and various ties have already been established:

Both the US Army and United States Marine Corps have successfully field tested the ELRF eye-safe laser rangefinder in the M1 Abrams main battle tank. Designated ‘M1 ELRF’, this system can replace all previous laser rangefinders used in the M1 Abrams.

Discussions are also ongoing with the US Army regarding the MUSS multifunctional self-protection system for tanks. It uses various sensors to warn of anti-tank guided missiles and laser-guided munitions while automatically initiating the necessary countermeasures. Already integrated into 300 Puma infantry fighting vehicles of the German Armed Forces, the sophisticated and proven system is now to be further developed to meet US Army requirements.

Moreover, the US Department of Defense, the US Department of Homeland Security and the US Federal Aviation Administration have also shown some interest in the innovative TwInvis passive radar. It cannot be located as it does not transmit any signals itself, but instead uses reflections from existing VHF and UHF signals to detect targets. This makes it perfect for covert surveillance tasks.

The course is set

Working closely with colleagues throughout the entire HENSOLDT Group, the HENSOLDT Inc. team will expand its own engineering expertise and manufacturing capabilities so that it can deliver products tailored to customers in the US. For the year ahead, the course is set for further successful cooperation between the company’s teams following the idea of ‘ONE HENSOLDT’.

With its complex set of challenges in relation to the protection of its countries, citizens, infrastructure and nature, Latin America is considered one of the most promising markets for security solutions of all kinds. Initial outlines are now being added to this previously blank spot on HENSOLDT’s map.

Numerous people become victims of drug dealers. The Amazon rainforest has been on fire for several weeks. Human trafficking is an extremely profitable business. Thousands of kilometres of borders are largely unsecured. The list could be easily continued as Latin America has a massive security problem. This represents a huge market opportunity for products from the HENSOLDT Group (currently with a local presence in Chile, Mexico and Brazil), which intends to significantly expand its business in the region in the coming years.

A new brand for a booming market

Defence and security forces of many nations rely on HENSOLDT security solutions to protect people and infrastructure. Innovative and agile, with experience on major projects, the company is considered the ideal partner in many places. Only in Latin America, far away from the production centres in Europe, is HENSOLDT still relatively unknown. This is set to change soon thanks to new partnerships, a presence at local trade fairs, targeted marketing and lots of discussions.

Initial steps taken

The company has already enjoyed some initial success. The Chilean Navy has just acquired HENSOLDT’s latest TRS-4D radar. And the Brazilian Army has purchased various electronic warfare products. But HENSOLDT’s team in Latin America still has a long way to go. After all, each country faces its own unique challenges, ranging from everyday street crime in many places and public protection through to border control.

Seizing the opportunities

The HENSOLDT portfolio has solutions for almost all of these problems. The latest sensor technology, Xpeller counter-UAV systems, ground and naval radar devices and surveillance optronics products can be used to effectively combat drug, weapon and human trafficking and strengthen security across the entire region. HENSOLDT can offer state-of-the-art land, sea, air and security solutions for the defence upgrades planned in several countries. Besides additional opportunities in the booming security business, there is also big potential in the defence segment, especially among naval forces. For example, HENSOLDT offers important surface and subsurface solutions with its periscopes.

Hence, HENSOLDT is pursuing a clearly defined growth strategy in Latin America. The company plans to gradually extend its presence to the focus markets of Brazil, Colombia, Chile, Mexico and Peru. For example, it intends to build partnerships that will enable local production, better establishment of the brand and further expansion of the business. One thing is clear: Latin America needs the security that HENSOLDT products can afford.

The opportunities

The Asia-Pacific region, or APAC for short, currently accounts for two thirds of global growth. Even leaving out China, it still covers more than one sixth of global defence spending. That is why the HENSOLDT office in Singapore has set its sights on expansion.

One key feature of the APAC region is its heterogeneity. Each country has its own cultural and social norms that affect how business is done. People from other countries are treated with respect, but also some degree of mistrust initially. Therefore, awareness, image and a local presence are crucial to success.

HENSOLDT recognised this early on. Starting in the four countries with the highest defence spending in the region – Japan, South Korea, India and Australia – the company plans to develop its customer proximity country by country over the coming years. The foundations for success have already been laid, as German engineering skills are highly valued in the region.

Singapore – where everything converges

HENSOLDT manages all activities in the region out of its central sales office in Singapore opened in early 2018 in the premises of the British radar specialist Kelvin Hughes, which had been acquired a year earlier. Serving as the link between colleagues in Germany and France and the other APAC offices, this is where priorities are set and new business opportunities are developed, initiated and implemented.

In addition to building further on the already good connections established in Singapore, this mainly means one thing for local HENSOLDT colleagues: travel. Face-to-face meetings and discussions with main contractors, partners, customers and users are required to create the basis for future business.

Japan – HENSOLDT representation planned

HENSOLDT has no representation in Japan yet. The emphasis is on ‘yet’, however, as the company plans to open an office there in 2020 already. Moreover, access to the market should be made easier through cooperation with a local defence company. Japan offers great potential for HENSOLDT, not least through the potential replacement of the 3D radar frequently found there with HENSOLDT’s innovative 4D systems.

India and South Korea – spirits high thanks to new orders

India and South Korea are among the countries in which HENSOLDT has already been able to leave its initial footprint as a sensor supplier with its predecessor companies and Kelvin Hughes. Radar devices, self-defence systems and optronics equipment are successfully in use, often for many years at this stage. In the non-defence segment, HENSOLDT is also a leading supplier of train simulators for train drivers in India.

Recent orders for submarine optronics from India and Taiwan as well as further potential orders in the pipeline from South Korea prove the success of the approach taken.

Australia – all signs point to growth

The acquisition of an Australian provider of radars and services which is active throughout the entire APAC region marks the dawn of a new era on the fifth continent. Based in the capital, Canberra, the unit now operating under the name HENSOLDT Australia offers proximity to government agencies there. The radar system monitoring and management services already offered by the acquired company have opened up an additional business area. In addition to conventional radar maintenance, ongoing system optimisation is the focus. This is a unique selling proposition that HENSOLDT intends to integrate into its global business going forward.

Furthermore, HENSOLDT already received an order from the Royal Australian Air Force in mid 2015 for the installation of nine air traffic control radar systems and surveillance of all Australian airspace. Installation of these systems has now begun.

The goal: considerable revenue growth

HENSOLDT generated around seven per cent of its total revenue in the APAC region in 2019. Air traffic control radar and coastal surveillance offer particularly promising business opportunities to build up on. The establishment of service capacities – also in cooperation with third parties – is expected to generate further revenue and increase customer proximity as well. In addition to the top four markets, the focus is also on countries such as Indonesia, Malaysia, Singapore, Vietnam, Thailand, Philippines and Taiwan.

Ulm site - from custom manufacturing shop to series production facility


Growth and series production – this is the principle by which HENSOLDT has completely transformed radar production at its Ulm site, moving from a focus on individual projects with sometimes extremely small quantities to standardised series production. As a result, output has multiplied and customer waiting times have been slashed.

When Henry Ford introduced the assembly line and revolutionised automotive production in 1913, business flourished. The car became a mass product and series production a synonym for productivity.

HENSOLDT has also made the shift to series production. For a manufacturer of highly sensitive high-tech products, this is necessarily quite different to mass production in the automotive sector. However, converting the four main products in the radar sector from laborious single-piece production to an assembly line setup still represents a massive step towards industrial-scale manufacturing for HENSOLDT, too.

Fundamental change

Global growth means more for HENSOLDT than simply breaking into new markets, developing new products and acquiring companies. The strategy also includes integrating new products into the current portfolio and then standardising them.

In recent years, for example, the four main products in the radar area – TRML-4D (ground) and TRS-4D (naval) air surveillance systems, Spexer 2000 ground surveillance radar and ASR airport surveillance radar – have been gradually consolidated within product families with a common product core and prepared for series production. Eurofighter radar antennas are also to be produced in larger quantities in series production in the future.

Hall 31 – synonymous with productivity

Sounds simple, but it is not. After all, the new manufacturing concept involves much more than just production in series. Future products also have to be designed with a view to possible series production and the sales team has to deliver the forecasts and obtain the orders needed for the envisaged production rates. Then there is production itself. Logistics and storage measures defined by employees in working groups so as to ensure the flow of materials also have to be implemented and adjustments or even fundamental changes to work processes are required.

In this context, our hall 31 in Ulm was extensively reconfigured – now encompassing a floor space of around 2,100 square metres, this is one of HENSOLDT’s largest production buildings at its Ulm site. Everything was in place by early 2019: jobs that had previously involved activities across the entire site were consolidated and reorganised based on a process developed by the employees themselves. Series production could begin.

Higher quantities – shorter waiting times

The benefits are already fully clear. A new Spexer 2000 leaves the factory every week, manufacturing of the TRS-4D has increased significantly and series production of the new TRML-4D has begun.

Progress is also being made in preparing series production of the new Eurofighter radar. A total of 30,000 transmit-and-receive modules alone, main components of the Eurofighter radar antenna, are expected to be produced per year in the future. All in all, our target is that up to 100 complete radar systems will leave the new series production facility each year over the next few years – an impressive rise in production volume.

Thanks to the modular design, the radars can also be customised more quickly and we aim to thus cut customer waiting times notably. While the lead time for an ATC radar was previously several months from order placement, we now work towards beginning acceptance testing with the customer and to deliver radars as soon as possible after the integration.

But this is only the beginning. Over the coming years, HENSOLDT intends to extend series production to include other sensor product areas as well. In this way, this high-tech custom manufacturer is gradually being transformed into a high-tech series producer.

The four main products

Stronger together


France has always been one of HENSOLDT’s key markets. The acquisition of NEXEYA, the French expert in aviation, defence, energy and transportation electronics, bundles know-how and sustainably strengthens HENSOLDT’s market position even beyond France’s borders.

If two partners simply match. If they share the same values and have a common customer and partner base. And if, moreover, their products have not previously competed with one other, but rather complemented each other. Then you could speak of a ‘perfect marriage’. And this is exactly what has taken place between HENSOLDT and NEXEYA.

Five sectors – one common goal

Since its foundation in 1997, then named Eurilogic, NEXEYA has developed into a respected specialist in electronic security solutions, both in the non-defence and defence sectors, and consistently grown even beyond the borders of France. Its current focus is on aviation, defence, energy conversion, electrical installation safety and transport.

HENSOLDT’s acquisition has created a new heavyweight in the high-revenue French market. Together, the two companies intend to significantly expand their industrial and technological base in the defence and non-defence sectors. New, innovative solutions are to be developed, significant growth to be achieved in the midterm and customer demands to be met to the best possible extent.

More expertise

HENSOLDT is setting up a new competence centre for the whole group in France that will also contribute to this. Its focus will be on Command and Control/Combat Management Systems (C2/CMS), robust onboard systems and test benches, mainly hydrogen-based solutions for energy supply optimisation and electronics maintenance.

After the NEXEYA transaction, the new HENSOLDT Holding France is made up of HENSOLDT France and NEXEYA France. They share operational business in two new operational units: ‘Défense et Sécurité’ (defence and security) and ‘Aerospace et Systèmes Civils’ (aerospace and civil systems).

Mutual benefits

NEXEYA system and service solutions and HENSOLDT sensors together with the complementary know-how and size of both companies will make it easier to enter new markets, develop comprehensive solutions for customers worldwide and explore new business areas.

Focus on the customer

From the outset, it has been written into NEXEYA’s DNA to provide innovative solutions with high value for the customer. Currently, the focus is on the following areas:

Aviation

NEXEYA develops and markets products for testing avionic and electrical networks (validation, integration, fault location), special tools for production lines and on-board power conversion equipment, from prototypes through to the operation and maintenance phases of civilian and military aircraft.

Defence

With its LYNCEA (ship-based battle management systems) and ARGOSIA (airborne systems for command and control of maritime surveillance and ISR missions) mission management systems, NEXEYA perfectly complements HENSOLDT’s identification systems (IFF) and datalinks for the defence sector.

Energy conversion

NEXEYA develops and produces systems that manage, store and supply hydrogen-based electricity from renewable energy sources in line with the energy policy requirements of our time. The energy conversion technologies in particular can even be integrated into existing HENSOLDT products to increase their performance (see chapter HENSOLDT innovations: Energy – anytime and anywhere).

Safety of installations

With digital control systems, data acquisition and monitoring systems, high-performance power supply systems and modular power supply solutions, NEXEYA meets nuclear safety standards and ensures the safety of electrical installations.

Transportation

From trams and subways to high-speed trains, NEXEYA’s train control and electrical distribution systems increase transportation reliability and safety. In addition, the company develops integrated solutions and energy conversion products in the automotive sector for the electric and autonomous e-mobility of the future.

A new chapter begins


HENSOLDT UK was established following the acquisition of Kelvin Hughes, a long-standing British company, in 2017. All of HENSOLDT’s activities in the United Kingdom are now consolidated under this brand and all of the products in HENSOLDT’s portfolio can be offered in the UK market by a local company, for example to the Ministry of Defence and others. This has opened up new business opportunities.

Tradition is writ large at the UK radar manufacturer Kelvin Hughes. After all, the company has been in existence since the 18th century and its products have included sextants and marine chronometers. The first commercial radar was produced in 1948 based on technology developed during World War II. The company began supplying radars to navies around the world in the late sixties. Since then, Kelvin Hughes has equipped over 30 navies all over the world with state-of-the-art radar technology. A new chapter in the company’s eventful history began in 2017 through its acquisition by HENSOLDT and renaming as HENSOLDT UK.

From the UK for the global market

The establishment of HENSOLDT UK means more than the proverbial killing of two birds with one stone. The integration of Kelvin Hughes into HENSOLDT allows for mutual exchange of products and customers. This means that Kelvin Hughes’ costeffective and yet highquality product range can now also be offered to existing HENSOLDT customers. At the same time, HENSOLDT has gained access to former Kelvin Hughes customers, including the UK Ministry of Defence. And, with the Kelvin Hughes site in Enfield, HENSOLDT is expanding its industrial presence in the UK, and thereby strengthening another important and strategic key market and opening up new business opportunities.

Integration into the HENSOLDT family

While processes and procedures were aligned and mainly replaced by those of HENSOLDT in the initial integration phase, product and system integration has now begun. This involves reaping synergies in relation to the Xpeller counter-UAV activities and integrating the battle management systems of NEXEYA acquired in France, which are to be further developed together with those of HENSOLDT UK.

HENSOLDT UK’s products have been divided into two lines – Security Solutions and SharpEye Radar. Both will now be integrated into HENSOLDT’s IFF radar product line.

“We are expanding in the UK and merging our existing product range with the Kelvin Hughes offering. This will allow us to create complex system solutions that will significantly drive our business in this market.”

Thomas Müller, CEO HENSOLDT

“Kelvin Hughes and HENSOLDT have shaped the radar market for seven decades. By consolidating our products under one brand name, we are increasing our visibility in the market and opening up new business opportunities.”

Russell Gould, Managing Director HENSOLDT UK

1 plus 1 equals more than 2


More than 70 years of experience, over 600 South African employees, two exceptional local business units and one global market – GEW and Optronics merged under the new HENSOLDT South Africa (SA) brand in 2019 and will embark on a shared success story going forward.

Sometimes you need to leave your comfort zone in order to start a new chapter and confound the mathematics. So it was with HENSOLDT in South Africa last year. GEW and Optronics, two companies rooted in the local market for decades, have established a joint organisation under the new HENSOLDT SA brand. And one plus one equals more than two in this instance: the joint venture gives HENSOLDT an even higher profile in the South African and other African markets, while at the same time the global market for defence and security solutions is now also benefiting from the expertise of a new global player based in South Africa.

A look back

GEW in Pretoria has been considered a technology pioneer in innovative signal processing, spectrum management, and security products and systems for more than 50 years. Surveillance and direction finding, electronic countermeasures and frequency management applications developed and produced inhouse by GEW protect civilians, armed forces and infrastructure far beyond South Africa’s borders.

HENSOLDT Optronics founded this South African subsidiary in Irene more than two decades ago, which has focused ever since on the development of airborne targeting and surveillance solutions for defence and security applications. Helmet displays for pilots, laser rangefinders and parts of HENSOLDT’s submarine periscopes are also produced in South Africa.

Officially operating within one joint organisation since September 2019, the employees of both formerly independent organisations have had an eventful time as HENSOLDT SA within a very short period. While both business units work independently within HENSOLDT’s Spectrum Dominance & Airborne Solutions and Optronics divisions, they are building a vibrant new organisational culture as a united HENSOLDT team.

A look ahead

HENSOLDT SA is expanding its position as a heavyweight in the national and international market for defence and security authorities with applications for ships, submarines, ground vehicles, helicopters and jets. The company plans to now extend the business of the two business units Optronics (part of the HENSOLDT Optronics division) and GEW (part of the HENSOLDT Spectrum Dominance & Airborne Solutions division). This includes expanding HENSOLDT’s Radar, IFF & COMMS division by establishing a dedicated business unit in South Africa, with the goal to make HENSOLDT SA the leading South African provider of sensor solutions.

With additional investment and the creation of development, service and sales jobs, the company plans to tap into new markets from South Africa in the future. As part of its overall strategy, HENSOLDT SA wants to establish itself as a strong brand and become the leading provider of defence electronics solutions and products in South Africa and beyond.

HENSOLDT South Africa portfolio

MENA - challenge south of the Mediterranean


The Middle East and North Africa, or MENA for short, has often witnessed and is still facing certain security challenges. Proven and new partnerships are opening up opportunities for HENSOLDT to develop its business activities there.

With its own offices in Abu Dhabi, Saudi Arabia and Turkey, HENSOLDT’s activities in the Middle East are currently focused on sales. Despite a strongly competitive environment, ministries of defence and the interior in the different countries rely on the quality of various HENSOLDT solutions to protect their national interests, the security of their infrastructure and the safety of their populations.

In particular, the electronic warfare and security systems of GEW, which has been part of the new HENSOLDT South Africa since 2019, have enjoyed a good reputation in the region for many years. There is also major interest in almost all of the HENSOLDT Group’s product portfolio, especially the company’s latest technology.

Cooperation, partnerships and joint ventures are expected to ensure the necessary local presence in the years ahead.

Secure borders

Algeria borders Niger, where the jihadist terrorist group Boko Haram is still causing unrest. The German Foreign Office has expressly warned against travel to Niger. In order to contain weapon and people smuggling in particular, we at HENSOLDT support Algeria in border security.

Vehicles, pedestrians or low-flying objects are automatically detected and can be observed day and night.

Networked via software, the radar, optronics and radio systems involved offer an integrated solution for protecting large swathes of Algeria’s border.

Successful start in North Africa

The joint venture set up in Algeria in 2014 is one shining example of this. HENSOLDT indirectly holds 49 per cent of this joint venture, SCAFSE (Société Commune Algérienne de Fabrication de Systèmes Électroniques), while other shares are held by an Algerian stateowned company and a local computer company. The joint venture has enabled HENSOLDT to set up its own production facility in Algeria. The products manufactured there are making an important contribution to maintaining security in the region as Algeria is considered an anchor of stability in the Maghreb.

This means that a partnership that benefits all parties involved has developed in the best spirit of a joint venture. HENSOLDT has gained access to the market and already generated a substantial revenue with radars and optronics over the years. In return, Algeria has obtained urgently needed expertise and thus can train local employees and secure its own borders (see box: Secure borders).

New joint venture in Saudi Arabia

The activities in Algeria thereby provide an almost perfect blueprint for another joint venture currently in the pipeline in Saudi Arabia. HENSOLDT signed a memorandum of understanding with the stateowned company SAMI (Saudi Arabian Military Industries) regarding this in December 2018. As part of Vision 2030, established by the Saudi Crown Prince Mohammad bin Salman and published in 2017, one of SAMI’s objectives is to facilitate local manufacturing and development by foreign companies.

To simplify matters, HENSOLDT plans to establish the joint venture in 2020 with 49 per cent of the equity interests being held by HENSOLDT South Africa. Orders will then be won and executed using the knowledge transferred on a step-by-step basis. Some of the negotiations regarding the products and systems that might initially be brought into the joint venture are already nearing conclusion.

Further expansion planned

And that is just the beginning. In the medium term, HENSOLDT also plans to establish its own subsidiary in Saudi Arabia. Furthermore, Pakistan is on the list of countries in which the company plans to open a site.

After all, HENSOLDT products are not only well known in the MENA region but are also highly valued for their technology and quality.

"Yes we can"


With the foundation of the US subsidiary HENSOLDT Inc. in Virginia, HENSOLDT is on track to expand in the US as well.

The US defence market is the largest in the world. Controlled from the Pentagon in Washington, DC, it accounts for approximately 60 per cent of global defence spending. HENSOLDT Inc., operating under a Special Security Agreement, gives HENSOLDT increased access to highly protected US military forces and authorities in an exciting and new way. Through HENSOLDT Inc., the US military now has the opportunity to acquire HENSOLDT products and learn more about the company’s exceptional engineering expertise.

The first step is always the hardest

Strict procurement and security rules had proven the biggest obstacle to date to HENSOLDT gaining access to the US market as a non-US company. The HENSOLDT Group has thus invested a great deal in establishing HENSOLDT Inc., and with Ken Loy as CEO and a Board of Directors based in the US, it can now cooperate directly with US customers on strictly regulated and secret programmes. As a subsidiary of the HENSOLDT Group, HENSOLDT Inc. complies with the parent company’s policies and procedures and works closely together with its Sales, Production and Customer Services units. Colleagues on both sides of the Atlantic have worked hard to establish HENSOLDT Inc. by setting up new cooperation practices and meeting the US regulatory requirements.

The situation looks good

HENSOLDT has already been able to make an initial name for itself in the US with the delivery of the TRS-3D radar to the US Coast Guard and the TRS-4D radar to the Lockheed Martin defence company and the US Navy. Nevertheless, it plans to further increase awareness and hone its brand profile. In addition to the company’s new US website, online since 2019, its presence at major trade fairs and exhibitions in North America is also contributing to this. For example, HENSOLDT Inc. was represented at Canada’s global defence and security trade show CANSEC, the National Symposium of the SNA (Surface Navy Association), the Heli-Expo and SOFIC (Special Operations Forces Industry Conference). Moreover, HENSOLDT Inc. has presented TwInvis to the US Federal Aviation Administration, expanded the LCS and NSC programmes, forged new connections with the offices of the Army’s ground vehicle programmes and expanded its relationships with key US partners in the areas of air traffic management and security solutions and in aviation markets.

For 2020, additional campaigns for individual product groups are planned, which will aim to increase awareness of HENSOLDT’s comprehensive portfolio.

Enormous potential

Enormous potential

The US Department of Defense has shown interest in HENSOLDT’s ‘Detect and Protect’ solutions in the past and various ties have already been established:

Both the US Army and United States Marine Corps have successfully field tested the ELRF eye-safe laser rangefinder in the M1 Abrams main battle tank. Designated ‘M1 ELRF’, this system can replace all previous laser rangefinders used in the M1 Abrams.

Discussions are also ongoing with the US Army regarding the MUSS multifunctional self-protection system for tanks. It uses various sensors to warn of anti-tank guided missiles and laser-guided munitions while automatically initiating the necessary countermeasures. Already integrated into 300 Puma infantry fighting vehicles of the German Armed Forces, the sophisticated and proven system is now to be further developed to meet US Army requirements.

Moreover, the US Department of Defense, the US Department of Homeland Security and the US Federal Aviation Administration have also shown some interest in the innovative TwInvis passive radar. It cannot be located as it does not transmit any signals itself, but instead uses reflections from existing VHF and UHF signals to detect targets. This makes it perfect for covert surveillance tasks.

The course is set

Working closely with colleagues throughout the entire HENSOLDT Group, the HENSOLDT Inc. team will expand its own engineering expertise and manufacturing capabilities so that it can deliver products tailored to customers in the US. For the year ahead, the course is set for further successful cooperation between the company’s teams following the idea of ‘ONE HENSOLDT’.

Tapping into new markets


With its complex set of challenges in relation to the protection of its countries, citizens, infrastructure and nature, Latin America is considered one of the most promising markets for security solutions of all kinds. Initial outlines are now being added to this previously blank spot on HENSOLDT’s map.

Numerous people become victims of drug dealers. The Amazon rainforest has been on fire for several weeks. Human trafficking is an extremely profitable business. Thousands of kilometres of borders are largely unsecured. The list could be easily continued as Latin America has a massive security problem. This represents a huge market opportunity for products from the HENSOLDT Group (currently with a local presence in Chile, Mexico and Brazil), which intends to significantly expand its business in the region in the coming years.

A new brand for a booming market

Defence and security forces of many nations rely on HENSOLDT security solutions to protect people and infrastructure. Innovative and agile, with experience on major projects, the company is considered the ideal partner in many places. Only in Latin America, far away from the production centres in Europe, is HENSOLDT still relatively unknown. This is set to change soon thanks to new partnerships, a presence at local trade fairs, targeted marketing and lots of discussions.

Initial steps taken

The company has already enjoyed some initial success. The Chilean Navy has just acquired HENSOLDT’s latest TRS-4D radar. And the Brazilian Army has purchased various electronic warfare products. But HENSOLDT’s team in Latin America still has a long way to go. After all, each country faces its own unique challenges, ranging from everyday street crime in many places and public protection through to border control.

Seizing the opportunities

The HENSOLDT portfolio has solutions for almost all of these problems. The latest sensor technology, Xpeller counter-UAV systems, ground and naval radar devices and surveillance optronics products can be used to effectively combat drug, weapon and human trafficking and strengthen security across the entire region. HENSOLDT can offer state-of-the-art land, sea, air and security solutions for the defence upgrades planned in several countries. Besides additional opportunities in the booming security business, there is also big potential in the defence segment, especially among naval forces. For example, HENSOLDT offers important surface and subsurface solutions with its periscopes.

Hence, HENSOLDT is pursuing a clearly defined growth strategy in Latin America. The company plans to gradually extend its presence to the focus markets of Brazil, Colombia, Chile, Mexico and Peru. For example, it intends to build partnerships that will enable local production, better establishment of the brand and further expansion of the business. One thing is clear: Latin America needs the security that HENSOLDT products can afford.

The opportunities

Asia-Pacific - goal of considerable revenue growth


The Asia-Pacific region, or APAC for short, currently accounts for two thirds of global growth. Even leaving out China, it still covers more than one sixth of global defence spending. That is why the HENSOLDT office in Singapore has set its sights on expansion.

One key feature of the APAC region is its heterogeneity. Each country has its own cultural and social norms that affect how business is done. People from other countries are treated with respect, but also some degree of mistrust initially. Therefore, awareness, image and a local presence are crucial to success.

HENSOLDT recognised this early on. Starting in the four countries with the highest defence spending in the region – Japan, South Korea, India and Australia – the company plans to develop its customer proximity country by country over the coming years. The foundations for success have already been laid, as German engineering skills are highly valued in the region.

Singapore – where everything converges

HENSOLDT manages all activities in the region out of its central sales office in Singapore opened in early 2018 in the premises of the British radar specialist Kelvin Hughes, which had been acquired a year earlier. Serving as the link between colleagues in Germany and France and the other APAC offices, this is where priorities are set and new business opportunities are developed, initiated and implemented.

In addition to building further on the already good connections established in Singapore, this mainly means one thing for local HENSOLDT colleagues: travel. Face-to-face meetings and discussions with main contractors, partners, customers and users are required to create the basis for future business.

Japan – HENSOLDT representation planned

HENSOLDT has no representation in Japan yet. The emphasis is on ‘yet’, however, as the company plans to open an office there in 2020 already. Moreover, access to the market should be made easier through cooperation with a local defence company. Japan offers great potential for HENSOLDT, not least through the potential replacement of the 3D radar frequently found there with HENSOLDT’s innovative 4D systems.

India and South Korea – spirits high thanks to new orders

India and South Korea are among the countries in which HENSOLDT has already been able to leave its initial footprint as a sensor supplier with its predecessor companies and Kelvin Hughes. Radar devices, self-defence systems and optronics equipment are successfully in use, often for many years at this stage. In the non-defence segment, HENSOLDT is also a leading supplier of train simulators for train drivers in India.

Recent orders for submarine optronics from India and Taiwan as well as further potential orders in the pipeline from South Korea prove the success of the approach taken.

Australia – all signs point to growth

The acquisition of an Australian provider of radars and services which is active throughout the entire APAC region marks the dawn of a new era on the fifth continent. Based in the capital, Canberra, the unit now operating under the name HENSOLDT Australia offers proximity to government agencies there. The radar system monitoring and management services already offered by the acquired company have opened up an additional business area. In addition to conventional radar maintenance, ongoing system optimisation is the focus. This is a unique selling proposition that HENSOLDT intends to integrate into its global business going forward.

Furthermore, HENSOLDT already received an order from the Royal Australian Air Force in mid 2015 for the installation of nine air traffic control radar systems and surveillance of all Australian airspace. Installation of these systems has now begun.

The goal: considerable revenue growth

HENSOLDT generated around seven per cent of its total revenue in the APAC region in 2019. Air traffic control radar and coastal surveillance offer particularly promising business opportunities to build up on. The establishment of service capacities – also in cooperation with third parties – is expected to generate further revenue and increase customer proximity as well. In addition to the top four markets, the focus is also on countries such as Indonesia, Malaysia, Singapore, Vietnam, Thailand, Philippines and Taiwan.