BAE wins contract for Korean F-16 upgrades

By GARETH MACKIE
Published on 07/08/2012 00:00

Defence giant BAE Systems has won a major contract to
upgrade more than 130 South Korean F-16 fighter jets.

The value of the deal is yet to be confirmed but it is believed to be worth more than $1 billion (£642 million), with the bulk of that going to BAE, Europe’s largest defence contractor.

Under the deal, the group will install new computers and operating systems in the jets, with most of the work to be carried out at its US facilities in Florida, Georgia and Texas.

Dave Herr, president of BAE Systems Support Solutions, said: “This is a strategic international win for us, significantly expanding our aircraft upgrade and modification business.

“We have extensive capabilities that span across BAE Systems, and I am confident that our team offers the best value to the customer.”

Last week, BAE said increased demand from outside the UK and US helped grow its order book to £40bn. However, first-half sales fell 10 per cent to £8.3bn as it was hit by a squeeze in military spending.