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Analysis: European Defense Contracts

By LEANDER SCHAERLAECKENS, UPI Correspondent

BRUSSELS, March 17 (UPI) -- Tanker contract to bring $600 million plant to Alabama

Although the U.S. Air Force's $35 billion aerial refueling tanker contract went to European EADS, in conjunction with Los Angeles-based Northrop Grumman, and not Boeing, the U.S. economy can console itself with the fact EADS and Northrop will spend $600 million on their Mobile, Ala., plant to assemble the tankers, RF Design Magazine reports.

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Airbus Chief Executive Officer Tom Enders said the contract will result in 1,300 jobs in the Mobile area that will start delivering the first of the 179 KC-45As in 2011. Airbus is a subsidiary of EADS.

The contract will sustain an estimated 25,000 jobs, to which 2,000 could still be added, and 230 smaller American subcontractors. Northrop says some $360 million will be generated for the U.S. economy.

Boeing might still file a formal complaint against the selection process at which it was pipped by Airbus despite being the heavy favorite and producer of the Air Force's current tanker fleet.


Russia to upgrade Indian MiGs

Following Pakistan's recent purchase of 36 new F-16 and 250 JF-17 fighter jets, India has contracted Russia to upgrade 69 25-year-old MiG-29s, the Times of India reports. The deal has been reported to be worth $960 million.

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The first six jets will be upgraded in Russia, the other 63 in Nashik, India, within the next three years. They will be fitted with the Zhuk-ME radar, new weapon controls systems, more sophisticated weaponry and bigger fuel tanks. The upgrades will sustain the five squadrons for another 15 years.

Some of the new elements will be purchased from Israel.

Russia is also competing for Indian tenders for 126 fighter jets, 317 helicopters and an unspecified amount of artillery. The tenders are worth a total of $15 billion.


Lockheed wins Romanian radar contract

Lockheed Martin said it won a contract to supply the Romanian Ministry of Defense with 17 TPS-79(R) multimission surveillance radar systems.

They will tie into Phase II of Romania's "Gap Filler" program.

Phase I was also contracted to Lockheed when it supplied two prototypes of the same model.

Romania also owns five Lockheed Martin AN/FPS-117 long-range air surveillance radar systems that monitor airspace.

The value of the contract was not disclosed.

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