Stephan Wasylko

1
The European Aerospace and Defense IndustryThe
UK Perspective

• Stephan Wasylko
• Senior Commercial Officer
• U.S. Embassy London

2
UK Aerospace Market

• The 2nd largest in the world, after the U.S.
• 45.3 bn turnover in 2005 (up 25 on 04)
• BAE Systems, Rolls-Royce, Cobham
• Defense represents 54 of revenues
• Employs 124,000 people in UK
• Est. 67 of sales export-related
• EU and U.S. are primary customers

3
UK Defense Market

• The worlds second largest
• Represents 5 of the worldwide market
• 80bn Ministry of Defence spend FY05/06
• FY05/06 26,000 contracts worth 36.4 billion
• Defence Equipment Support (DES)
• Around 25 of defense industrial base is
  foreign-owned

4
Major UK Programs

• F35 Joint Strike Fighter
• Astute-class Submarine
• Type 45 Destroyer
• Future Lynx Helicopter
• Future Strategic Tanker Aircraft
• Future Aircraft Carrier (CV(F))

5
U.S. Civil Aerospace Exports to the United
Kingdom (2004-2006) ( Million)
 
United States International Trade Commission
(USITC)
6
U.S. Military-Related Merchandise Exports to the
United Kingdom (2004-2006) ( Million)
 
United States International Trade Commission
(USITC)
7
U.S. Companies in the UK
8
Mergers Acquisitions 2006-7

• GE
• Acquired Smiths Aerospace for 4.8bn
• Spirit AeroStructures
• BAE Systems Regional Aircraft aerostructures
  business sold to Spirit AeroSystems for 160
  million
• Esterline
• bought Wallop Defence Systems for 59 million

9
Best Prospects

• Engine technology
• Composites and specialist materials
• Maintenance, repair overhaul (MRO)
• Simulation synthetic environments
• Border security, especially airports
• CBRN detection and protection

10
Our Programs in 2007-8

• Defence Systems Equipment International
• London, September 11-14, 2007
• U.S. Pavilion by AUSA
• International Security, National Resilience
• London, December 4-5, 2007
• Formerly Airport, Port Transportation
  Security
• Farnborough International Airshow
• Farnborough, July 14-20, 2008
• U.S. Pavilion by Kallman Worldwide

11
Key Considerations

• UK Defence Industrial Strategy (DIS)
• National Aerospace Technology Strategy (NATS)
• Sustainable Aviation Strategy
• EU Emissions Trading Scheme
• U.S.-EU Open Skies Agreement

12
Market Entry

• Channels
• Agreements and contracts
• Trade promotion and advertising
• Pricing CIF Duty VAT
• Sales service and customer support
• Intellectual property (IP) protection
• Regulatory issues
• Due diligence professional services

13
Compliance

• EU regulations
• EASA
• WEEE, REACH, and RoHS
• CE marking
• U.S. export controls
• Export Administration Regulations (EAR)
• ITAR
• 3rd country sales by UK subsidiaries

14
Resources

• U.S. Commercial Service
• Office of Defense Cooperation
• Defence Manufacturers Association
• Society of British Aerospace Companies
• Regional bodies
• Aerospace Wales
• West of England Aerospace Forum
• Midlands Aerospace Alliance
• Northern Defence
• Farnborough Aerospace Consortium

15
Contact Us
U.S. Commercial Service Tel. 011 44 (0) 20
7894 0419 Fax 011 44 (0) 20 7894
0020 London.Office.Box_at_mail.doc.gov Office of
Defense Cooperation Tel. 011 44 (0) 20 7894
0737 Fax 011 44 (0) 20 7894
0730 odclondon_at_state.gov

• U.S. Embassy
• 24 Grosvenor Square
• London W1A 1AE
• United Kingdom