Aerospace and defence opportunities in Scotland

Aerospace and defence opportunities in Scotland

Introduction Scotland s aerospace and defence capability Scotland s aerospace and defence industry is one of the most vibrant and successful sectors of UK business. Recognising the opportunities for growth amongst companies which have a key role to play in the 21st century marketplace, the industry and Scottish Government have worked closely to develop and deliver a strategy aimed at maximising Scotland s potential in the sector. A number of factors have combined to position Scotland as a key player and to increase its profile as a location for aerospace investment. Excellent infrastructure specifically its four international airports combined with a skilled and cost-competitive workforce, an extensive programme of research and development, a track record in leading-edge electronics and a mature supply chain have helped to deliver a vibrant sector which attracts investment from some of the world s largest companies. World-famous manufacturers such as BAE Systems, Spirit Aero Systems (Europe) Ltd and Rolls Royce are already based in Scotland alongside specialist companies such as Thales and Raytheon and major names in MRO including British Airways, GE and the Goodrich Corporation. As the sector adapts and develops to address the changing demands of the modern marketplace, Scotland offers a wide range of opportunities and benefits. 02

Contents A world-class industry Avionics and defence powerhouses of the industry Manufacturing, Research UAVs Universities, Support design and MRO excellence in action & development and space pushing the boundaries and composites vital development people and skills specialist knowledge and expertise and infrastructure how can SDI help? Contact details p 2&3 p 5&6 p 7 p 8&9 p 10&11 p 12&13 p 14&15 p 16 03

Key facts The UK has the world s largest aerospace industry outside the USA, and the aerospace sector is the second largest contributor to the UK economy after pharmaceuticals Scotland accounts for approximately 10% of the UK aerospace industry Scotland is home to around 170 companies in the aerospace, defence and naval sectors, and employs around 16,000 people Employment in the Scottish aerospace, defence and naval sectors grew by 8.5% in 2006 32% of people employed in these industries are of graduate level or equivalent, amounting to more than 5100 people Scotland is a centre of excellence for manufacture, repair and overhaul services, and the fastestgrowing part of the industry in this country. 04

Avionics Scotland s well-established electronics industry has an excellent reputation for quality and innovation and offers a number of advantages for avionics companies looking to locate here. In particular, the existence of a large, skilled workforce with expertise in associated key areas such as software, digital media and games technology is a major benefit and has already been instrumental in attracting some of the sector s leading global players. Scotland s workforce boasts expertise across a range of disciplines including defensive systems, opto and optoelectronic engineering, laser, radar and remote sensing, photonics, software development, flight control systems, missiles and weapons and microwave and radio frequency systems. In addition, leading-edge research, design and manufacturing facilities for the avionics sector are on offer at several locations across Scotland and there are a variety of opportunities for both research projects and commercial collaborations. A radar is tested in SELEX Galileo s Compact Antenna Test Range (CATR). SELEX Galileo As one of Europe s foremost defence electronics companies, SELEX Galileo is a leader in the supply of electronic systems for military platforms in air, at sea or on land. The company is a major supplier to several military aircraft, land and naval programmes, serving an international range of military forces. SELEX Galileo s site in Edinburgh is home to the UK s largest defence electronics business and has a reputation for producing high-quality sophisticated technology. The Radar and Advanced Targeting Line of Business based at Edinburgh brings together an established yet diverse range of products such as Eurofighter Radar, where it jointly forms in excess of 50% of the Euroradar consortium, as well as Infrared Counter Measures (IRCM), Lasers, Seaspray 7500 and Seaspray 7300. In March 2009 SELEX Galileo s Vixen 1000E was selected for SAAB s Gripen Next Generation (NG) programme. SELEX Galileo s innovative approach has attracted a host of new customers whilst maintaining a firm foundation of existing business. A significant contract with the US Coast Guard was secured thanks to the development of a new breed of active electronically scanned array based products. In addition, SELEX Galileo s lightweight miniature radar, PicoSAR, has been specifically designed for small, unmanned airborne platforms or helicopters. Edinburgh also produces the leading edge Nemesis system which protects aircraft and helicopters from infrared missiles and an advanced technology targeting laser for Lockheed Martin s F-36 Joint Striker Fighter. 05

Defence Scotland is well positioned to exploit the opportunities which will arise as the global defence industry continues to develop in response to the changing environment of the 21st century. With many of the top 12 global aerospace and defence companies having facilities here, Scotland is ideally placed to support this transformation. Defence accounts for about 30 per cent of the aerospace, defence and naval sector in Scotland, and generated 684 million in 2006. Over 4000 people (20 per cent of those employed in the Scottish aerospace industry) work in the defence sector and 14 per cent of sales some 72 million is invested in research and development. Scotland has strong links into key UK sector development activities in process excellence and supply chain development. A number of major developments are also being progressed, including the multibillion-pound project to design, develop and construct the Royal Navy s new fleet of aircraft carriers. Edinburgh is home to SELEX Galileo s laser centre of excellence which is leading the way in developing the next generation of laser targeting technologies. The sector in Scotland also offers a number of opportunities for collaboration. SELEX s Edinburgh site houses the Electro Magnetic Remote Sensing Defence Technology Centre (EMRS DTC), a consortium of industry and academic partners, headed on behalf of the MOD by SELEX Sensors and Airborne Systems. The Centre is focused on research into cost-effective sensor technologies which may exploit any part of the electromagnetic spectrum in order to substantially improve the MOD s ability to detect and identify potential military targets at long range and in adverse weather conditions. Raytheon Systems Ltd Raytheon Systems Limited s electronics facility in Glenrothes, Fife, has over 40 years experience in the design, development and manufacture of a wide range of integrated electronics components and equipment. Specialising in markets where integrity and reliability are critical, Raytheon also provides a full electronic manufacturing service for the defence and aerospace industries. In the defence field, current work programmes include the Control Section for AMRAAM (Advanced Medium Range Air-to-Air Missile), and components for UK Tomahawk TLAM, for which Glenrothes is the sole UK supplier. Commercial activities include power products for the International Space Station. 06

Manufacturing and design Scotland employs approximately 10,000 people in aerospace manufacturing and design and its strengths encompass a range of areas including mechanical, hydraulic, electrical, aerostructures and electronics. That expertise is demonstrated by Scottish companies across a number of fields, including fixed leading-edge wing assembly, microwave and RF components, aero engine components and assembly, flexible circuits, rotary wing hydraulic and pneumatic systems, fuel components and systems integration. MB Aerospace Holdings Motherwell-based MB Aerospace is a worldclass provider of supply chain management in design, development, integrated manufacturing solutions and component manufacture. The company employs over 100 personnel at two sites and specialises in the manufacture, test and assembly of defence and commercial aerospace systems and components. MB Aerospace s high standards and commitment to customer service have enabled it to secure Preferred Gold Supplier status from aircraft manufacturer Boeing, making it one of only three European companies to hold the status and one of only 20 organisations worldwide. Boeing s new contract enhances MB Aerospace s existing links with the aircraft manufacturer, adding to the company s current orders with Boeing Integrated Defense Systems of St. Louis, USA. The work will focus on supplying several variations of launch systems for the Boeing Harpoon programme, including the supply of torpedo launch systems for submarine platforms. MB s contract with Boeing is in addition to a multi-million-pound deal agreed with Rolls-Royce, which will see it supply rings for civil, defence, marine and energy engines to be used in aircraft including the Harrier, Hawk and Boeing 747-400. Maintenance, repair and overhaul Scotland s share of the worldwide maintenance, repair and overhaul (MRO) market is around 4 per cent, with civil MRO in Scotland accounting for 66% of aerospace sales some 646 million in 2006. MRO has long been recognised as a significant opportunity for growth within Scotland s aerospace sector and a centre of excellence has been successfully developed around Prestwick in the west of the country. The aerospace corridor between Glasgow and Prestwick is home to many of the leading names in the global industry including British Airways Maintenance Glasgow, which operates a key facility for its narrow-bodied Airbus fleet, Rolls-Royce, which undertakes MRO on military and commercial engines such as the V2500, and East Kilbride Engineering Services, which provides design and analysis on the JSF and Nimrod military aircraft. Spirit Aerosystems (Europe) Spirit Aerosystems now has its European MRO headquarters at Prestwick, part of a larger facility which employs around 750 people and specialises in advanced aerostructures for fixed leading edges and design engineering. The facility produces structural components for the Airbus A320, A330, A340 and A380 families of aircraft. The site provides customers in the commercial aerospace market with airframe structures. At manufacturing and engineering levels, this involves producing leading and trailing edges for Airbus wing assemblies, leading edge production for Boeing wings and the manufacture of tailplane, ventral tanks and other items for the Raytheon Aircraft Company. In addition, the company has also established its Composites Development Centre, a new research and development facility. 07

Research and development In 2005 alone, 91 million was invested in aerospace research and development in Scotland. The country s R&D activities are of vital importance in helping to support and develop an industry which is so heavily reliant on innovative technology to drive home competitive advantage. Scotland can offer expertise across a wide range of technologies applicable to the sector, including electronics, optoelectronics, micro-electronics and energy sources, with particular strengths in areas such as advanced aerospace materials and structures, aerodynamics and computational fluid dynamics, sensor technologies, systems engineering, autonomous systems and maintenance, repair and overhaul. The Advanced Forming Research Centre (AFRC) The Advanced Forming Research Centre is a partnership of the University of Strathclyde s department of Design, Manufacture and Engineering Management, the Mechanical Engineering department and global industrial manufacturing companies. Modelled on the highly successful Advanced Manufacturing Research Centre developed with Boeing in the UK, the AFRC is designed to be a beacon for engineering and manufacturing excellence and to drive improvements in performance and profitability of UK industry. It focuses on a range of areas including primary techniques, technologies, supply chain issues, processes and design tools. Rolls-Royce and Airbus have played a major part in shaping the centre and the aim is to enable the industrial partners to drive the research and industrial support agendas, with the University of Strathclyde delivering world-class support from within its own teams and its world-wide partners. 08

Space Scotland s world-class research, development and manufacturing enable it to make a significant contribution to space technology, with Scottish companies and research organisations making exceptional strides in space-related technology and development over a number of years. Key factors helping Scotland to outperform larger countries in this area include a well-established infrastructure and long-standing tradition of innovation. The country s universities are involved in a range of activities relevant to the sector. Dundee University has a department specialising in space technology and its ground observatory is used by NASA to track spacecraft during missions, while Glasgow University houses a space mission analysis design department headed by Dr Gianmarco Radice, a leading expert in space engineering. The Advanced Space Concepts Laboratory, based at the University of Strathclyde s Department of Mechanical Engineering, is a new 2 million research centre funded by the European Research Council. The centre will further expand its team in 2009 and will conduct a five-year programme of frontier research on visionary space systems through an investigation of the orbital dynamics of spacecraft at extremes of length-scale. Clyde Space Clyde Space, based at Glasgow s West of Scotland Science Park, provides affordable, high-performance subsystems for small satellites and microspacecraft. The company s off-theshelf products which include spacecraft power systems, small satellite battery systems and other digital and analogue systems have been used on a number of space missions worldwide. Clyde Space also offers innovative bespoke solutions and consultancy services based on its extensive experience of micro spacecraft platforms. The CubeSat system a 1 kg 100x100x100mm cuboid spacecraft unit offers faster and lower-cost access to actual space missions when compared to traditional small satellites and has been the basis of over 40 missions since 2003. STAR-Dundee STAR-Dundee, which has its origins as part of University of Dundee s Space Technology Centre, developed SpaceWire, an innovative technology of major importance for communications networks on board spacecraft. The system is now being used on many European Space Agency (ESA), NASA and Japan Aerospace Exploration Agency (JAXA) spacecraft and by research organisations and the space industry across the world. It has been employed on a wide range of missions, including Bepi Colombo, Earthcare and GAIA from ESA; James Webb Space Telescope, Lunar Reconnaissance Orbiter, GOES- RT and SWIFT from NASA; and Bepi Colombo MMO and NeXT from JAXA. STAR-Dundee provides a range of support equipment and services for users of SpaceWire and its team has established a global reputation within the sector by creating new products which meet the needs of spacecraft designers. The company has won two SMART awards from the Scottish Government in recognition of its cuttingedge technology. 09

Unmanned aerial vehicles Scotland s expertise in related sectors provides significant potential for future development in both the civil and defence-oriented UAV sector. Key factors in growing the UAV market are Scotland s skills base around 2000 people with experience in civil aircraft manufacturing and regulation as well as world-leading expertise in the field of sensor technology, an area of the aerospace industry which is currently attracting increasing investment globally. In addition, technologies and skills being developed by Scotland s vibrant and innovative energy sector are also transferable to the aerospace industry. BAE Systems Regional Aircraft The civil aerospace arm of defence company BAE Systems is based at Prestwick Airport. BAE Systems Regional Aircraft has unique capability in the field of civil aircraft regulation and certification developed through design, production and support of a number of passenger aircraft. This capability is being utilised to understand the requirements for unrestricted use of UAVs in civil airspace through the ASTRAEA government-supported research programmes. Regional Aircraft is also involved in substantial work packages on the Future Carrier (CVF) from BVT Surface Fleet to add to its existing Nimrod MAA4 work and increasing levels of consultancy on both aviation and non-aviation projects. Thales Glasgow-based Thales Land and Joint Systems design and manufacture the electro-optical systems and equipment which form the sensor suites deployed on the Watchkeeper UAV. The largest UAV programme in Europe, Watchkeeper provides a range of day and night capability in Intelligence, Surveillance, Target Acquisition and Reconnaissance (ISTAR) missions and around 50 of these UAVs are expected to be utilised by British Armed Forces in the future. 10 Nimrod simulator & training facility at Kinloss. Image supplied by Thales. Top right: European Fighter Aircraft (EFA) helmet, inner fitting produced by Slingsby.

Composites Scotland hosts more than 45 companies in the composite materials supply chain operating across the energy, aerospace, marine, automotive and construction sectors. Activities include manufacture of carbon fibres, design engineering, integration of manufactured composite products and conversion of technical textiles. The latter is an area which is currently enjoying strong growth and is also one in which Scotland sees rich potential due to its significant capabilities in carbon and polypropylene fibres and an emerging capacity in textile preforms and cores. In the global supply chain, Scotland is effectively the local supplier to major composite end users based in the UK such as Airbus, Bombardier and GKN which is enabling Scottish companies to build strong customer relationships with the sector s key players. Slingsby Advanced Composites Slingsby Advanced Composites designs and manufactures structural composite products to provide problem-solving solutions for the aerospace and defence industries. Slingsby specialises in unmanned airframe vehicle aerostructures, fixed and rotary wing helmets, civil aerospace aerostructures, emergency door systems and stealthy structures for naval defence applications. In 2008, the company announced plans to further expand its aerospace portfolio by opening a major new facility in Prestwick. 11

Scotland s universities The well-established reputation for innovation and collaboration which Scotland s academic sector enjoys is particularly in evidence within the aerospace industry. Scotland s 14 universities have expertise and experience across a variety of aerospace disciplines, produce a high number of engineering and aeronautical graduates and carry out groundbreaking research and development. A large number of research programmes are currently under way across Scotland s academic sector, including: Glasgow University The Aeronautics and Fluid Mechanics Department at Glasgow is recognised as one of the world s leading research and development facilities, with a significant track record of innovation in aeronautical engineering. As one of only three in the UK to be endorsed by BAE Systems, the department s key fields include low and high-speed aerodynamics, avionics, flight systems and non-linear dynamics, solar sail technology and blade vortex interaction. Edinburgh University Edinburgh s Department of Mechanical Engineering has particular strengths in computer controlled electro-mechanical solutions, as well as engineering design. The University is also home to a dedicated Centre for Defence Studies. Strathclyde University The Institute of Photonics at Strathclyde bridges the gap between university and commercial research, including research into all-solid-state light sources and applications such as countermeasures and sensors. The Mechanical Engineering Department undertakes space research and is home to the new Advanced Space Concepts Lab. Aberdeen University Aberdeen s Department of Engineering conducts ground-breaking research in a variety of areas including optoelectronics, colour holography, optical metrology, optical materials characterisation and optical methods of nondestructive evaluation. University of the West of Scotland The University of the West of Scotland s Department of Mechanical and Manufacturing Engineering specialises in composite materials. University of Abertay Dundee Abertay s School of Engineering works in close collaboration with a number of aerospace companies, including BAE Systems, and specialises in pioneering work on advanced microdisplays and wearable displays, communications technology and optical information processing. 12

People and skills As well as a tradition focused on innovation and entrepreneurship, Scotland can offer aerospace companies a workforce which boasts a high level of specialist expertise. Within the Scottish aerospace industry, there are rising productivity levels supported through collaborative working and sharing of best practice. The country s skilled labour force is one of the best-trained, most reliable and most cost-competitive in the world, and is being further augmented by a constant stream of engineering and aeronautical graduates from its world-class universities. Clear evidence of government support for the industry and recognition of the key role it has to play in the future health of Scotland s economy can be seen by the fact that 500 apprentices are currently in training to meet the sector s needs. Optronic mast being fitted to HMS Astute. Image supplied by Thales. 13

Interventions and support Regional Selective Assistance Regional Selective Assistance (RSA) grants offer funding towards investment which will create or safeguard jobs. Around 100 million was awarded in 2006/07 and money was allocated to a huge range of companies, from large corporations to SMEs. Proof of Concept Great ideas sometimes need a helping hand to get off the ground. That s why Proof of Concept funding is available to university researchers to help turn ideas into commercially viable projects. Successful applicants are given help in the first stages of commercialising or market-researching their technology and Proof of Concept also acts as a R&D funding gateway to investment by venture capital companies. Training Plus Scottish Enterprise s Training Plus initiative provides funding to help with the cost of staff development and training. Grants can be awarded for up to 50% of expenditure on training for generic skills, or up to 25% if the training is companyspecific. ITI Techmedia Backed by a ten-year, 450 million investment by the Scottish Government in three Intermediary Technology Institutes, ITI Techmedia sponsors research in digital media and communications. It is commercially focused and marketdriven and dedicated to supporting the creation and marketing of successful new intellectual assets which will boost the Scottish economy. Enterprise Area Prestwick International Aerospace Park is situated within a newly created Enterprise Area. Occupying a strategic site adjacent to Glasgow Prestwick International Airport, the Aerospace Park is a 34 hectare site capable of accommodating up to 70,000 square meters of commercial property within a high quality, superbly located and landscaped environment. The Enterprise Area offers business rates relief of up to 100% (which could be worth as much as 275,000 per business) up until March 2017, alongside other benefits such as a swift planning process. For more information please visit www.sdi.co.uk/invest-in-scotland/ enterprise-areas.aspx R&D funding can provide up to a quarter of the cost of research and development projects in Scotland. This valuable financial support can cover the costs of everything from buildings and people to technology and equipment along with any associated outsourcing expenditure. Equity Funding Scottish Venture Fund investment Various equity funding schemes exist in of 500,000 to 2 million in deals Scotland such as the: between 2 million and 10 million. Find out more about the wide range Scottish Seed Fund funding between of funding and support available in 20,000 and 100,000 Scotland at: Scottish Co-Investment Fund investment www.scottish-enterprise.com between 100,000 and 1 million 14

Industry associations SBAC Scotland SBAC Scotland is the trade association for the aerospace, defence, space and naval sectors in Scotland. Established in 2005, it aims to provide a focal point for the aerospace and defence sectors and is intended to help accelerate skills, workforce development and market awareness in Scottish aerospace in order to deliver measurable competitive advantage and business benefits. Scottish Engineering Scottish Engineering is the main support and lobbying organisation for the manufacturing engineering industry in Scotland. Scottish Manufacturing Advisory Service (SMAS) SMAS was created to raise awareness of best practice in manufacturing through training and seminar activity and to provide one-to-one advisory services for small and medium-sized enterprises including advice on how best to increase growth, exploit new business opportunities and generate additional revenue. In working to improve the competitiveness of Scotland s manufacturing sector, it also provides support for collaborative projects between companies which will develop the capabilities of Scottish manufacturers. Infrastructure A key factor in the robust health of Scotland s aerospace industry is the strength and quality of its four international airports in Glasgow, Edinburgh, Prestwick and Aberdeen, plus key regional airports in Inverness and Dundee. Edinburgh handles nearly nine million passengers a year on some 39 airlines to 75 destinations and is Scotland s busiest airport. With around eight million passengers in the past year and 17 airlines operating to 54 destinations, Glasgow Airport is Scotland s second biggest facility. Prestwick is Scotland s centre of excellence for MRO, and is the base for Ryanair, Europe s largest low-fare airline. It boasts the longest commercial runway in Scotland and carries more than two million passengers per year. Aberdeen is home to the world s busiest commercial heliport and, with over 40,000 helicopter movements per year, is host to a cluster of successful airframe, gas turbine and avionics overhaul companies. 15

For further information, please contact: Elaine McKeown Scottish Development International 5 Atlantic Quay 150 Broomielaw Glasgow G2 8LU Tel: +44 141 228 2222 Fax: +44 141 228 2089 Email: elaine.mckeown@scotent.co.uk www.sdi.co.uk/aerospace www.scottish-enterprise.com/your-sector/aerospace www.homecomingscotland.com SE/2785/Aug10