Sussex-based defence contractor Thales UK has signed an £800million contract with the Government, committing it to the provision of pilotless "eye-in-the-sky" spyplanes for use by the British armed forces.

Much of the work on the coveted Watchkeeper programme will be taking place at the French-owned company's UK headquarters in Crawley, West Sussex.

Thales' bosses have, since July of last year, known their company to be the preferred bidder for the project, the news having been imparted by defence secretary Geoff Hoon at the Farnborough Airshow.

Now the company, which beat off stiff competition from a consortium led by US weapons-maker Northrop Grumman, has agreed terms with the Ministry of Defence.

The Watchkeeper programme will supply the British Army with a fleet of unmanned aerial vehicles (UAVs), also known as drones, for use in the arena of military surveillance.

It will allow the armed forces to mount reconnaissance and surveillance operations over a battlefield area without putting lives in danger.

Furthermore, it will permit them to undertake such activities on a round-the-clock basis.

Images will be relayed at high speed to commanders on the ground.

The Ministry of Defence (MoD) believes drones are likely to play an important role in future conflicts.

The unarmed aeroplanes are capable of cruising at altitudes of between 5,000ft and 10,000ft. They could be used to help clear minefields.

The first batch is expected to be in service by 2010.

Alex Dorrian, Chief Executive of Operations at Thales UK, commented: "This represents the largest single contract for Thales UK to date. It is therefore an important moment for us and one we have all worked toward for a long time.

"We will continue to work closely with the Ministry of Defence in order to deliver an excellent operational capability on time, on budget and to requirement. Based on this endorsement of our solution, we expect to secure export sales of at least £400 million over the next ten years."

Denis Ranque, Thales' chairman and CEO, said the contract established Thales in the global unmanned aerial vehicle systems market and "reinforces our position as a major British defence company".

Crawley MP Laura Moffatt added: "This contract secures at least 2,100 high-tech jobs in the UK - many based here in Crawley.

"Thales UK are already an excellent employer in the town and this really builds and consolidates that position. Yet again, we see Crawley demonstrating its position at the cutting edge of technology and industry, with government investment securing a bright future for employment."

Thales employs about 3,000 people in Crawley. In April, those jobs were secured when the company announced it had found a suitable site to consolidate its various businesses in the area.

The company, which had considered a move out of Sussex, is developing the area occupied by the Thales aerospace business in Manor Royal to bring its operations under one roof.

Watchkeeper is not the only high-profile contract win for Thales in recent months. The company is also part of the £13 billion Air Tanker consortium to provide the RAF with refuelling aircraft.

Tuesday, August 9, 2005