Rosenbach added that AS90 self-propelled artillery, currently supplied by British firm BAESystems , is also likely to be reduced.
The merger of the 1st and 2nd Royal Tank Regiments may also reduce the need for Challenger 2 tanks, built by BAE Systems Land and Armaments.
The UK’s Ministry of Defence, MoD, currently spends around 14 billion pounds ($21.8 billion) each year. Other aerospace and defense firms supplying the MoD include America’s Boeing and Northrop Grumman , Italy’s Finmeccanica , France’s Thales and the UK’s Rolls-Royce .
However, Rosenbach said the UK’s announcement on Wednesday could not have surprised defense manufacturers. “The fact that today’s cutbacks have been anticipated for some time and will likely occur in phases across a number of years will lessen the blow to the defense sector,” he said.
He added that the UK’s cuts were part of a broader European trend. “We have already seen extensive personnel, platform and defense budget cuts in Germany, France, Spain and many others. The focus across Europe is on streamlining and cost savings at the expense of capability.
“The state of the British economy has already proven we are not exempt from the deteriorating situation on the continent, and the government has long stated the British Armed Forces will not be immune,” he said.Page 2 of 3 | Prev Page | Next Page