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BAE hopes to land deal with Indian Government to build Hawk jets
Wednesday, July 11, 2012
BAE Systems will find out within weeks whether it has secured a contract to build 20 Hawk jets, which could provide more work for its Brough site.
The company is working to secure a deal with the Indian Air Force's Surya Kiran display team to build the jets.
Discussions are ongoing and, if the contract is secured, it could be good news for Brough.
In May BAE Systems announced 248 jobs at the Brough site would be saved after a £1.6 billion deal was struck with Saudi Arabia to supply Hawk trainer jets.
The defence giant confirmed it has secured the contract to build 22 of the aircraft made famous by the Red Arrows as well as spares and technical support to Saudi Arabia.
But the latest contract could be complicated by BAE's relationship with Indian company Hindustan Aeronautics Ltd (HAL).
In previous deals in India, HAL has built the aircraft, with BAE providing the expertise.
BAE spokesman Dean Tasker says it is still early days, with the bidding process involving a "request for proposal" still to begin.
He said: "Funding has been released by the Indian Government to purchase more Hawk aircraft for the display team. But we haven't received an order yet.
"It is quite a complicated process with India. We have a production plan with HAL, which is our partner there.
"A request for proposal will go to HAL, who will them place that proposal with ourselves."
If the deal is secured, Mr Tasker says the nature of the contract would need to be thrashed out.
He said: "If we were successful, it would mean manufacturing would more likely take place in India.
"But it could also have the team at Brough supporting it.
"It wouldn't create any new jobs but it could well sustain jobs already at Brough.
"It probably wouldn't have the same impact as the Saudi Arabia contract but Brough could certainly get some work from it."
Ian Gent, staff convenor at BAE Brough, is refusing to get too excited until he knows more about the deal.
He said: "My gut feeling is this will not have a huge impact on Brough.
"India has its own sites to build these aircraft. But if the Indian Government wants the Hawks quickly then BAE might suggest they could be built here more swiftly if there is a tight window.
"If we are to benefit, it will be the logistics and engineering side that will profit. But I think it's a case of just waiting and see what develops.
"If the deal is secured we will be asking BAE management if we will benefit and, if not, why not."
Meanwhile, Unite is now concentrating its efforts on ensuring work can be found for the Brough staff losing their jobs rather than trying to keep the site open.
Mr Gent said: "I think securing the jobs in May for the Saudi contract was a great result and that's as far as we can push it.
"We are trying to ensure our workers will have new jobs in place in the area they live but it isn't easy.
"We are trying to persuade investors to take on the site and utilise the skilled workers already here."
BAE hopes to land deal with Indian Government to build Hawk jets | This is Hull and East Riding