 |
Alvis PLC 2002
|
|
|
|
|
|
|
Alvis PLC produces armoured fighting vehicles, including the Saracen and Scorpion ranges. It has exported 20,000 military vehicles to more than 60 countries, most notoriously to Indonesia. Alvis' turnover is 100% military.
|
|
|
|
|
Alvis has exported widely and controversially, the most notable example being multiple deliveries to the brutal Suharto regime. Indonesia already had over 100 Saladins and Saracens when Scorpion and Stormer armoured vehicles were ordered in 1995. The following year saw an order for a further 50 Scorpions. UK-made armoured vehicles have been described as "the workhorses of the Indonesian army." Notoriously, they spearheaded its assault on the Islamic University at Ujung Padang in 1996, which left three students dead and many more injured. Their use in East Timor has been alleged and denied.
The last decade has seen Alvis take on a new lease of life by consolidating its position in the crowded military vehicle production sector. In 1997 Hãgglunds Vehicles AB, the Swedish armoured vehicle group, was acquired for £75m. The deal brought Alvis a healthy £400m order book, and helpfully expanded its range of products. Hãgglunds also brought a joint venture with Patria Industries of Finland - Patria Hãgglunds OY. In 1998 Alvis merged with the military vehicle business of GKN which, in return, received a 29.9% stake in the company. Alvis thus benefited from GKN Defence's membership of the French, German and UK governments' preferred consortium for the new Multi Role Armoured Vehicle (MRAV). This consortium had defeated a rival group led by Vickers Defence (Financial Times 16.10.98).
These activities, combined with the sale of Alvis Logistics, Alvis Unipower and its remaining interest in the Avimo Group completed the concentration on their core armoured vehicle business.
On 31st December 2001 the Group's order book was £610.5m, only £134.4m of which was at Alvis Vehicles and the rest with Hãgglunds Vehicles and Hãgglunds Moelv. Despite a fall in profits and turnover in the first half of 2001, the company states that it is confident that business will recover by 2003 when current developments and orders reach the delivery stage.
|
|
|
YEAR | NUMBER OF
EMPLOYEES | TOTAL SALES
| ARMS SALES
| WORLD ARMS
RANK | ARMS SALES AS
% OF TOTAL |
2001 | 1,500 | | | | |
2000 | | 316 | 316 | 68 | 100 |
1999 | | 380 | 380 | 75 | 100 |
1998 | 1,550 | 443 | 410 | 64 | 94 |
1997 | | | 120 | >100 | |
|
|
|
|
|
|
|
|
|
The company was founded in Coventry in 1919 as a maker of specialist cars, producing what was called "the poor man's Bentley." In the 1930s it began to produce reinforced versions of its cars, and also diversified into aero-engines, including those which powered the Lancaster bombers. After WW2 it continued to have a military bias and in the 1950s produced its first purpose-built armoured vehicle, the Saladin wheeled armoured personnel carrier. A total of 8,000 Saladins and its successor, the Saracen, were sold around the world, probably playing a decisive role in the Nigerian civil war of 1967-70, among other conflicts. Later the company produced the successful range of Scorpion and Stormer tracked vehicles which have been sold to 40 different countries.
Nevertheless the company went through a difficult period. It was sold to Rover in 1957 and, having dropped out of cars and aeroplanes, ended up as part of the state-owned British Leyland in the 1970s. In 1981 it was bought by a maker of optical instruments, United Scientific Holdings, whose chairman was seconded to reorganise the procurement division of the MoD and was raised to the peerege as Lord Levene.
Following the disposal of some of the optical companies at the beginning of the 1990s, it was decided to adopt the Alvis name for the Group in order to reflect the increasing concentration on military and vehicle engineering. In 1993 a significant restructuring of the Group took place when the optical companies owned by Alvis were transferred to Avimo, the then 51% owned subsidiary of Alvis in Singapore. The company then reduced its holding in Avimo, finally selling its remaining 17% to Thales in January 2001. By this stage Alvis had already sold both Alvis Logistics and Alvis Unipower.
The 1997 purchase of Hãgglunds and the 1998 merger with the military vehicle business of GKN (see introduction), complete the development of the present military vehicles company.
|
|
|
|
|
A twin barrel mortar system for installation on a variety of armoured vehicles and combat boats. Developed by Patria Hãgglunds OY.
For rescuing stranded vehicles in depths up to 2.9m.
Armoured support vehicle able to excavate, bulldoze and winch.
Family of specialist all-terrain vehicles of which over 11,000 have been sold to 40 countries. Can be adapted to many different roles.
Infantry fighting vehicle in 20-30 tonne range.
An 8 x 8 armoured utility vehicle, able to accomodate 11 soldiers, being developed by a european joint venture.
A wheeled light armoured vehicle, produced under licence from Swiss partner MOWAG. Comes in different versions for a range of functions, eg personnel carrier, command, ambulance and mortar vehicles.
A 4 x 4 armoured reconnaissance and patrol vehicle.
A light tank with a 90mm gun and two 7.62 machine guns, designed for roles including reconnaissance, fire support, escort duties and internal security.
'A concept for future armoured systems' under development for the
Swedish Defence Materiel Administration. Could enter service around 2010.
A 4 x 4 wheeled armoured personnel carrier, used primarily for internal security and insurgency roles. 'sold and proven all over the world' .
Evolved from the Scorpion, but is larger. Can carry 12 men with their battle equipment.
All-terrain mobile platforms which are also airportable and amphibious.
A 4 x 4 armoured vehicle for 10 to 14 people, manufactured in numerous versions including rescue and water cannon.
Has a robotic control system for remote operation as well as a flail assembly for rotating and penetrating ground surface in order to detonate or neutralise mines.
Tracked reconnaissance and infantry fighting vehicle.
|
|
|
|
|
KIA Motors of Korea order 93 Bv206 for onward delivery to the Korean armed forces (www.alvis.plc.uk/news/).
Alvis signs a coproduction deal with FNSS Defense Systems, Ankara, to manufacture Piranha light armoured vehicles for the Turkish armed forces (www.alvis.plc.uk/news/).
Oman signs a contract for 80 Piranha II armoured personnel carriers and equipment for the modernisation of their 60 Scorpion vehicles (www.alvis.plc.uk/news/, Jane's Defence Weekly 15.11.00).
US Army decides to buy Piranha vehicles (Alvis Annual Report 2000).
Alvis reported that 'the latest Supacat Mark 3's' had been delivered to a Far East country (www.alvis.plc.uk, November 2001).
Ghana reported to have signed a contract for £6m for an undisclosed number of Tactica vehicles (Jane's Defence Weekly 14.6.00).
Alvis claims to have gained 'experience in through-life management' of vehicle fleets through its management of 254 Desert Warriors in Kuwait (www.alvis.plc.uk).
Reported that 'key orders' from three unnamed Middle East countries could be delayed until 2001 (Financial Times 15.9.99).
Indonesia signs an £80m contract for 50 Scorpion vehicles. This followed on from its 1995 order which included Scorpion and Stormer vehicles (Jane's Defence Weekly 18.12.96).
Spain orders 10 Bv206S vehicles (contract value of £2.8m), to add to its 40 Bv206 vehicles (www.alvis.plc.uk/news/).
The UK government shortlists three companies for the Future Command and Liaison Vehicle (FCLV), awarding each a £500,000 risk reduction and trials contract. Alvis submitted the Scarab and another, unidentified, 4 x 4 vehicle ( Jane's Defence Weekly 27.6.01). The unidentified vehicle was later confirmed as the Italian IVECO Mulitrole Light Vehicle (Jane's Defence Weekly 19.8.01).
Sweden made a further US$29.8m order for 40 CV90 chassis (Jane's Defence Industry, May 2001).
Alvis is one of the four members of ARTEC, the joint venture company set up with Krauss-Maffei Wegmann GmBH, Rheinmetall Landsysteme GmBH and Stork PWV BV, to develop the Multi Role Armoured Vehicle (MRAV, or 'battlefield taxi') for the German, Netherlands and UK armed forces (www.alvis.plc.uk/news/). The deal is said to be worth £2.8bn (Financial Times 16.10.98).
Switzerland signs a £300m contract for 186 infantry fighting vehicles (Times 14.12.00)
Finland selects 57 CV9030 FIN from Patria Hagglunds Oy. The contract's value is £210m (Defence Systems Daily 3.11.00).
Two Bv206S vehicles purchased by Italy for trials prior to potential order for 58 vehicles. The Italian Army already operates 90 Bv206 vehicles (Jane's Defence Weekly 26.7.00).
UK orders BvS10 armoured all-terrain vehicles. The contract is valued at £50m (Times 14.3.00).
|
|
|
|
|
34 Grosvenor Gardens, London SW1W 0AL.
Ltd PO Box 106, Hadley Castle Works, Telford, Shropshire TF1 6QW, UK
- Hãgglunds Vehicles AB SE-891 82, Ornskoldsvik, Sweden
- Hãgglunds Moelv AS Postboks 244, N-2391 Moelv, Norway
- Patria Hãgglunds OY (Joint Venture) Tampere, Finland
|
|
|
|
|
Nicholas Prest Chairman & Chief Executive (£347,415) Joined group in 1982 having previously worked at DESO.
Martin Greenslade Finance Director since March 2000 (£188,926) Previously Managing Director of MNB Maizels Ltd and a corporate finance executive of Enskilda Securities.
Sir Robert Hayman-Joyce Non-executive Director (£20,000) Previously worked in the Royal Armoured Corps (Lieut-General) and the Defence Procurement Agency.
Trevor Beyer Non-executive Director (£17,500) Also a Director of Guiness Peat Group plc, Avimo Group Ltd, Lion Technologies plc and Newbury Racecourse plc.
David Wright Non-executive Director Previously an executive Director of GKN plc. Also a Director of Legal & General UK Select Investment Trust plc.
Secretary P.E. Jarman, Solicitor
Registrar Lloyds TSB Registrars
Auditors Ernst & Young
Incorporated in England No.13
Shareholders with more than 3% shares (as at 21 Feb 2002):
- GKN Defence 29.37%
- Schroder Investment Management Ltd 13.67%
- Fidelity Intl Services Ltd 4.49%
- Alvis Employee Benefit Trust 4.06%
|
|
Orders from outside Europe
Give us feedback on this page