Defense Technology International - July 2008 - (Page 28) DISPATCHES GLOBAL DANISH MODERN Commercial shipbuilding strategy cuts cost of frigates JORIS JANSSEN LOK•ODENSE, DENMARK enmark is looking at Greece as a possible export customer for its new 6,600-metric-ton (full load) frigate design. A delegation representing Danish industry and defense materiel command visited Athens in June to promote the design as a way for the Hellenic navy to economically meet its requirement for up to six air-defense frigates. The three frigates purchased by Denmark will cost taxpayers just €635 million ($997 million), excluding weapons. Denmark’s new ships are scheduled for delivery in 2010, 2011 and 2012. Gen. Jesper Helso, chief of defense, laid the keel for the first vessel on June 2 at Odense Steel Shipyard (OSS) here. At this price, six ships would probably cost around €1.2 billion. The Danish design would thus be well within Greece’s D budget, which reportedly is €2.2 billion for six ships. Athens could spend almost €1 billion on weapon systems and still end up below budget if it selects the Danish frigates. The low cost is possible because OSS is a commercial shipyard—in fact, it is one of Europe’s leading builders of container vessels, says Cdr. Anders Friis, frigate project manager for Denmark’s defense acquisition and logistics organization (FMT). Many of the blocks that make up the frigates will be manufactured in the OSS-owned Baltija and Loksa shipyards in Lithuania and Estonia, resulting in cost savings of up to 46%. The idea of constructing warships to commercial specifications prior to equipping them with weapons and other military gear has gained traction in recent years, as navies look for ways to reduce the cost of designing and building vessels. Another factor affecting cost is that FMT and the navy will be responsible for combat systems integration, which will happen after OSS delivers the ships with full-class certificates as civilian platforms. Combat systems integration will take approximately two years, so the three frigates will be operational in 2012, 2013 and 2014, respectively, says Friis. The area air-defense capability will follow later when SM-2 missiles have been acquired and qualification firings in the Pacific completed. The shipbuilder and FMT will also be able to benefit from lessons learned during the previous Absalon-class combat support ship program. “We did not make money on the two Absalons because of mistakes that were expensive and the relatively short building period,” says Christian RodinNielsen, OSS senior vice president for sales and purchasing. “We didn’t manage to properly mix in the naval program with our commercial projects, which led to coordination and prioritization issues that impacted our productivity. This is why we have stretched the production schedule for the frigates. In another measure, we have planned for some of the installation work of combat systemsrelated cabling to be done by FMT during the construction here.” JORIS JANSSEN LOK/DEFENSE TECHNOLOGY INTERNATIONAL The June 2 keel-laying involved placing a 60-metric-ton steel section in position in the open building dock at OSS shipyard. 28 DEFENSE TECHNOLOGY INTERNATIONAL JULY/AUGUST 2008 AviationWeek.com/dti http://AviationWeek.com/dti Table of Contents for the Digital Edition of Defense Technology International - July 2008 Defense Technology International - July 2008 Contents Around the World Science Watch Tech Watch Tactical Shift High Stakes Big Rig Tuning In Shipping Out Money - Saver Airing Differences Action Heroes Fast Track Deep Desires Programs Update First Response Sales Strategy In Focus Perfect Storm The Net Cutting Edge First Person In Review Insight Defense Technology International - July 2008 http://www.nxtbookMEDIA.com
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