
The BBC has learnt that high level meetings are taking place at the Department of Industry, Whitehall, over the future of Westland. A high level source has said that the Government is looking at
all options to safeguard the future of Westland.
It is not known what shape these meeting are taking, but we do know that representatives from Kawasaki Heavy Industries Ltd, Sikorsky, Augusta and surprisingly Honda Global Technologies are at these meetings. It is unknown what significance the addition of Honda is to the future of Westland, but Honda are known to have more financial clout than the other companies involved, combined.
Let’s take a look at the front runners in the race for Westland control:
Honda is due to complete the first of several assembly plants in the north east, around Sunderland, the first outside of Asia for this company. So a bid or merger with Honda would see that company enter into a new sector for them. However, there are some concerns that Honda entering into the helicopter engineering sector could see a drop in the quality of produce, but with a proven track record of employment in deprived areas Honda could be an appealing prospect for the Government to support. In Partnership with Kawasaki Heavy Industries, builders of the Police Helicopter BK 117, and known to be developing extremely high tech missiles and attack helicopters, this Japanese consortium could be irresistible.
Augusta has worked in partnership with Westland in the past, helping to design and build one of the fastest attack helicopters in the world, the Westland Lynx. The design of this [Lynx] helicopter has yet to be bettered in speed and agility for a helicopter in this class. The Army Air Corp has two battalions of this helicopter; with various munitions and surveillance models is use. As such, they may make an attractive proposition for the MoD procurement section.
The Sikorsky SH-3 Sea King is the basic design for the Royal Navy anti-submarine Sea King built by Westland. With Westland having the exclusive rights to build this machine for the British military, it is unknown if Sikorsky will allow continued use of these rights if they were not given preferred status in these negotiations. The Royal Navy would also have great concern if Sikorsky were not retained in some deal, as it would throw servicing contracts into disarray if Westland, or her new owner, had no rights to manufacture parts for the existing fleet of British Sea Kings.
All three bidders must satisfy the demands of the MoD to be considered, regardless of political considerations. This whole affair is causing many headaches for the Treasury, the MoD and the Department of Industry; who have thus far not ruled out nationalisation. It is also not known what direction Westland are looking at, who have the final say in any deal to be made, but without confirmation of Government build contracts, know that the company is virtually worthless; perhaps even worse than worthless?