IHS Jane's 360
Saudi Arabia becomes first Paveway IV export customer
Raytheon has secured its first export customer for the Paveway IV 500lb dual-mode (INS/GPS and laser-guided) precision guided munition (PGM), company officials confirmed on 25 March.
While the company was unable to confirm the identity of the customer, it is understood to be the Royal Saudi Air Force (RSAF). The Saudi export order is estimated to be worth in the region of GBP150 million (USD248 million) and to be for around 2,400 Paveway IVs.
A contract for the Paveway IV order is understood to have been signed between Raytheon UK and Saudi Arabia in December 2013, with the company receiving export approval from the US Congress - needed due to the use of US International Traffic in Arms Regulations (ITAR) sanctioned technology in the Paveway IV - in February.
The RSAF has long been earmarked as a potential Paveway IV operator, with IHS Jane's reporting in July 2013 that a Saudi export contract for Paveway IV was expected to be signed in December 2013. It is understood the RSAF intends to deploy the Paveway IV from both their Eurofighter Typhoon and Panavia Tornado fighter aircraft, although not from their Boeing F-15 Eagle fighters.
John Michel, business director for Raytheon Missile Systems in the United Kingdom stated the order was of "significant" value and volume of Paveway IVs, but was unable to confirm specific numbers.
Raytheon confirmed that production was already beginning for the new order, with relevant sub-contracts having already been placed. Michel expects that first delivery of the Paveway IV will occur in the next 18 months, with all deliveries completed six months thereafter.
Michel stated that the export order would maintain production of the Paveway IV at Raytheon UK's Glenrothes facility in Scotland for another 24 months, which provides a solid indication of the number of PGMs involved in the Saudi order. With the RAF's 2012 orders for 1,600 being valued by the UK MoD at over GBP100 million, the value of the Saudi order is likely to be in the region of GBP150 million, plus any additional training, integration, logistics and support costs.
The Paveway IVs for Saudi Arabia are expected to be of Raytheon's new baseline for the PGM, known as Mk II, which incorporates improved capabilities, based on the RAF's operational experience with the munition. These include an improved level of GPS accuracy, and an increased launch acceptability region for releasing the Paveway IV.
March 25, 2014
(I am not sure if this article from late March was reported on PDF)
