FrontLine Notes
BY FRONTLINE STAFF
© 2015 FrontLine Defence (Vol 6, No 1)

General R.J. Hillier Officially Joins Gowlings
January 2009 (Ottawa) Gowling Lafleur Henderson LLP (Gowlings) announced that ­General R.J. Hillier (former Chief of the Defence Staff) has officially joined the firm in the capacity of Strategic Advisor. General Hillier will assist Gowlings with client initiatives, business development and related strategic matters.
 
Prior to stepping down from his post as CDS, ­General Hillier enjoyed an impressive 35 year military career in Canada, which contributed to his extensive knowledge of strategic best practices. He served as Commander of the NATO-led International Security Assistance Force (ISAF) in Kabul, Afghanistan. He was also Commander of the Army; with command of NATO’s Stabilization Force’s (SFOR) Multinational Division (Southwest) in Bosnia-Herzegovina; as well as being the first Canadian Deputy Commanding General of III Corps, U.S. Army in Fort Hood, Texas.
 
“We are honoured that General Hillier has chosen to work with Gowlings in this unique role” said Gowlings Chair and CEO Scott Jolliffe. “The depth and breadth of General Hillier's strategic insight, along with his ability to motivate and lead teams, is exactly the calibre of professionalism that compliments the Gowlings work culture. We are looking forward to a mutually beneficial working relationship” said Scott Jolliffe.
 
“My role as Strategic Advisor will allow me to exercise the lessons of leadership that I have cultivated in my 35 year tenure with the Canadian Military. I am honoured to be in a position to advise Gowlings’ clients on strategic business issues,” said General Hillier. “The decision to work with Gowlings at this stage in my career was made simple by the wonderful professional people I met at the firm. In short, I was sufficiently impressed to ­continue the discussion, and then sign on!”

NH90 Training Centre
January 2009 – CAE (a world leader in simulation and modelling technologies) and consortium partners, Eurocopter, Thales, and Rheinmetall Defence Electronics, inaugurated the first NH90 helicopter full-mission ­simulator and the first NH90 training centre at a ceremony held at the German Army Aviation School in Buckeburg, Germany.
 
The NH90 helicopter program is the largest ever launched in Europe, with firm orders now totaling 507 to equip and modernize the Armed Forces of France, Italy, Germany, the Netherlands, Portugal, Oman, Finland, Norway, Sweden, Greece, New Zealand, Australia, Spain and Belgium. In addition to the NH90 training centres in Germany, CAE is also involved in the design and development of NH90 training systems for the following customers:
 
Australia: CAE is the prime contractor with overall responsibility for providing two MRH90 full-flight and mission ­simulators (FFMSs), training facilities, and ­comprehensive engineering and support ­services to the Australian Defence Forces.
 
Netherlands: Rotorsim, a consortium owned equally by CAE and AgustaWestland, has prime contractor responsibility for providing one NH90 full-mission flight trainer (FMFT) and an NH90 virtual sensor trainer for training rear crew sensor operators.
 
France: Helisim, a training centre based in Marignane, France and jointly held by Eurocopter, Thales, and Defense Conseil International, has ordered an NH90 full-mission simulator from Helicopter Training Media International, a joint venture of CAE and Thales responsible for the design and development of NH90 training media, including full-mission simulators.
 
Oerlikon Contraves trading as Rheinmetall Air Defence
Oerlikon Contraves AG began trading under the name Rheinmetall Air Defence AG as of 1 January 2009. Headquartered in Zurich, the company is a global leader in short-ranged air defence. An essential component of Rheinmetall’s Air Defence unit, the division unites a full spectrum of air defence activities. Rheinmetall Air Defence AG now offers the company’s global client base an array of air defence assets ranging from stationary cannon-based systems to mobile guided missile-supported solutions, together with sensor technology and associated networking solutions.

With an expanded portfolio – and approximately 1,050 employees at locations in Switzerland, Germany, Italy and Canada – Rheinmetall Air Defence will continue to draw on its expertise as a supplier of air defence system solutions.
 
The Oerlikon brand name will live on in connection with a series of products that represent the global cutting edge of air defence technology: Oerlikon Skyshield, Oerlikon Skyranger and Oerlikon Skyguard. Now being developed by Rheinmetall Air Defence on behalf of the Bundeswehr, is the NBS C-RAM, a very short-range air defence system for protecting forward operating bases and similar military installations from rockets, artillery and mortars.
 
Thanks to the Oerlikon Skyshield C-RAM system and its revamped Air Defence division, Rheinmetall is well on the way to meeting its strategic objective of expanding its leading role in technology for neutralizing small and very small targets and close-range air defence.
The process of force transformation now underway around the globe has prompted the company to broaden its focus beyond classic air defence to mobile systems with multi-mission, multi-role capabilities.

Boeing Sees IRB Opportunities in Canada
Halifax, January 2009 – At an event orga­nized by the Atlantic Canada Opportunities Agency, Boeing Company officials told nearly 50 Canadian aerospace and defense companies that while the company already generates some US$1 billion in business annually in Canada, significant opportunities remain for Canadian businesses.
 
The event gave Boeing an opportunity to learn more about current capabilities of the Atlantic Canadian aerospace and defense industry. “We’ve worked together since 1919, so Boeing has long valued the breadth and depth of the Canadian aerospace industry,” said Mark Kronenberg, vice president for International Business Development at Boeing Integrated Defense Systems. “With the modernization of CF18 Hornet fighters, the purchase of four C17 airlifters and planned acquisition of new medium-heavy lift helicopters, our relationship is set to bring new opportunities to the Atlantic region.” With over 200 suppliers in every region of the country, Canada is Boeing’s third-largest international supplier base.
 
Boeing announced the completion, one year ahead of schedule, of its IRB program for Phase I of the CF18 upgrade. That ­program provided US$398 million of work for Canadian industry, exceeding the company’s obligation by US$20 million.
 
U.S.-backed firm to buy Allen-Vanguard
January 2009 – Allen-Vanguard Corporation is being bought by Tailwind Financial Inc., an American-backed Toronto buy-out financing company, in a bid to fix financial challenges at the bomb-control company. Unanimously approved by AV’s senior management and board, the deal is subject to shareholder approval. Tailwind will buy all AV shares in an expected $35M share-swap, however, if the deal is not approved, the company will pay a $5M break-up fee to Tailwind.
 
Tailwind has reportedly valued the acquisition of Allen-Vanguard at about $235 million, including debt of about $200 million. The new company will keep the name of Allen-­Vanguard Corporation.
Allen-Vanguard has been strugggling since military orders from the U.S. have slowed. “New capital from the Tailwind transaction ... will allow management and the board to focus on important global business opportunities following the progress that we have made since last summer,” said David E. Luxton, president and CEO of Allen-Vanguard.
 
Shareholders will be offered chance to buy up to $100 million in new AV stock at a price of 28.5 cents per share. “We are particularly pleased that the proposed rights offering will allow shareholders to continue to participate in the future growth of a healthy, recapitalized Allen-Vanguard. We warmly welcome Tailwind shareholders to share in our vision and growth,” added Luxton.

“Tailwind is excited to be partnering with a strong management team and a company with enormous potential,” said Gordon McMillan, chairman at Tailwind. “Allen-­Vanguard’s proprietary products and services represent global leadership in an attractive and growing segment of the defense and homeland security sectors.”
 
AV announces Electronic Countermeasures system
January 2009 – Allen-Vanguard Corp. of Ottawa announced the release of its next-generation ECM (Electronic Countermeasures) system and a first order for a ­limited quantity from an unspecified national security agency in North America.
 
Allen-Vanguard provided limited information regarding the new technology, stating that it would provide further details to authorized military and security agencies and prospective partners.
The new platform is a hybrid multi-function system with next-generation radio frequency sensing and unmatched jamming (ESM/ECM) protection against radio controlled improvised explosive devices (RCIEDs), while operating seamlessly with communications systems of all types.
 
Its multi-role capability is reported to be fully networkable and provides C4I compatibility. The modular and adaptive open architecture provides a future-proof capability that program managers increasingly expect, enabling users to meet both current and emerging, unknown threats.
“This has the potential to reshape the landscape of ECM technology for the mission critical needs of the modern warfighter and security forces worldwide,” said CEO, David Luxton.
 
Allen-Vanguard has stated that it is in ­discussions with major defense electronics companies with a potential interest in licensing or co-venturing this new technology. “This has the potential to catalyze a shift in the long-term business model of our Electronic Systems business as we contemplate the range of applications of this technology in the defense electronics industry,” concluded Mr. Luxton.
 
Treatment Clinic for Operational Stress InjuriesJanuary 2009 – The Honourable Greg Thompson, Minister of Veterans Affairs, announced the establishment of Canada’s first residential clinic for service men/women with complex operational stress injuries such as post-traumatic stress disorder.

“Responding to our Veterans’ needs is a priority for our government, and for all ­Canadians,” said Minister Thompson. “We are improving services for our Veterans by expanding the network of operational stress injury clinics across Canada and introducing this new facility which offers in-patient support and treatment.”
 
The new Residential Treatment Clinic for Operational Stress Injuries will be located near Montréal in Ste. Anne’s Hospital, which is administered by Veterans Affairs Canada. One of five new operational stress injury clinics funded by the Government of Canada in Budget 2007, it will accommodate up to 10 patients at a time for stays of up to eight weeks. The Clinic’s unique treatment approach was developed to meet the specific needs of ­Canada’s Veterans, members of the Canadian Forces and RCMP, and their families.
 
“Our Government recognizes the stresses associated with military operations and we are committed to continue to strengthen support for those affected by operational stress injuries,” said The Honourable Peter MacKay, Minister of National Defence/Minister for the Atlantic Gateway.
 
“The Residential Treatment Clinic will be a valuable addition to the network of clinics operated by Veterans Affairs Canada and the Department of National Defence,” added Daniel Petit, MP for Charlesbourg-Haute-Saint-Charles.
 
Canada’s Mental Health Strategy includes the clinic network, Ste. Anne’s Hospital’s National Centre for Operational Stress Injuries, peer support through the Operational Stress Injury Social Support Program and research.
 
Veterans Affairs Canada expects the Residential Treatment Clinic for Operational Stress Injuries to open its doors to clients by the fall of 2009. Referrals will be accepted starting in June 2009. Plans include a network of 10 operational stress injury clinics to complement the five operational trauma and stress support ­centres operated by the Department of National Defence. Visit www.vac-acc.gc.ca

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© FrontLine Defence 2009

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