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DCNS subsidiary Armaris success on Gowind^® corvette programme in Bulgaria

Paris, 05 October 2007

Following his meeting with French President Nicolas Sarkozy, Bulgarian Prime Minister Sergeï Stanishev has given the go-ahead for an immediate start to talks on the procurement of four Gowind^® corvettes. A French-Bulgarian working group has been set up to finalise the contract before the end of year.

Planned to modernise Bulgaria's naval forces, the Gowind^® corvettes are directly derived from the design and technological lead advances of the FREMM multi-mission frigates (future frontline warships for the French Navy).

The programme will be led by DCNS's Lorient shipyard and will involve extensive cooperation with Bulyard Shipbuilding Industry (BSI) in Varna. BSI will complete an important share of the work as part of a technology transfer, resulting in significant economic benefits for Bulgaria.

"We welcome the Bulgarian Prime Minister's decision to finalise the contract to build these four vessels for the Bulgarian Navy," commented DCNS group Executive Vice President & COO Bernard Planchais. "This project is our first success with the Gowind^® new-generation corvettes. In addition, achieving this major milestone opens up new business opportunities for this type of vessel on the expanding global market as navies around the world seek to modernise their fleets. Cooperation with Bulgariais a key factor as we pursue development with new client countries, particularly in Eastern Europe."

Bulgaria has shelved a plan to acquire four new-built Gowind-corvettes from French naval shipbuilder DCNS because the cost (reportedly 780 million euros, that's around $1.1 billion at today's exchange rate) is too high for the country's defense budget.

Instead, Sofia is acquiring two 1970s-built used frigates (the deactivated BNS Westdiep and Wielingen) plus a decomissioned Tripartite-type minehunter (the former BNS Myosotis) from Belgium, Bulgarian defense minister Vesselin Bliznakov said on Friday.

This seems to be backed by this article: http://www.novinite.com/view_news.php?id=88292

Bulgaria Snubs France on Corvettes Deal

Bulgaria has snubbed France's offer to buy four last-generation Gowind corvettes, choosing instead to purchase three second-hand vessels - two frigates and a minesweeper ship - from Belgium, Bulgaria's defence minister Vesselin Bliznakov said on Friday.

Despite lobbying from French president Nicolas Sarkozy, who visited Bulgaria two months ago, the cabinet decided it did not have the money to pay for the deal.

The four corvettes would have cost Bulgaria EUR 780 M, although their maker, French firm Armaris, was ready to offset the costs with equal-sized investment in the Varna shipyards, which would have been used as a subcontractor for future Armaris deals.

Instead, Bulgaria will buy three upgraded ships from Belgium, which will set it back by only EUR 54 M, payable over eight years, Bliznakov said.

The cabinet made the decision on Thursday, although there was no motion in that sense on the meeting's agenda, published on the cabinet website.

Although the minister added that Bulgaria could still be interested in a deal for Gowind vessels several years down the line, it appears unlikely that Armaris would wait that long to pick a subcontractor in eastern Europe.

Two years ago, Bulgaria bought another upgraded second-hand frigate from Belgium for EUR 23 M, renaming it from Wandelaar to Drazki (Intrepid).



And this one: http://www.sofiaecho.com/article/no-to-french-corvettes/id_26619/catid_23

No to French corvettes

17:00 Fri 14 Dec 2007

On December 6, the Government removed from its agenda the deal with France's Armaris for the construction of four GOWIND corvettes for the Bulgarian military.

The 750 million euro deal was discussed at political level between President Georgi Purvanov and his French counterpart Nicolas Sarkozy on October 4 in Bulgaria.

Although the deal was widely advertised by Economy and Energy Minister Petar Dimitrov as one of the most successful arms trade offset deals on December 6, the Government decided to buy two frigates and a minesweeper from Belgium, all three second-hand. The price of the deal is 54 million euro.

In a 23 million euro deal in 2005, Bulgaria bought the 20-year-old Belgian frigate Wandelaar, which today serves under the name Drazki in the Bulgarian navy. This year Drazki took part in a Nato patrolling operation in Lebanese waters.

The December 6 decision means that Sarkozy's efforts could have been in vain since Defence Minister Vesselin Bliznakov told reporters on December 7 that the country's budget for the next three years will not be able to support the 750 million euro corvette deal. "We are not giving up on the corvettes for good but our prognosis say that we will not have the money for them in the next three years," Bliznakov said.

And this one: http://www.sofiaecho.com/article/bulgarian-navy-to-buy-three-vessels-from-belgium/id_26709/catid_66

BULGARIAN NAVY TO BUY THREE VESSELS FROM BELGIUM

12:54 Tue 18 Dec 2007 - Elitsa Savova

Bulgarian navy was in negotiations with Belgium for two used frigates and a minesweeper, Belgian defense ministry told Bulgarian news agency BTA.

The vessels were to be delivered with all their armament in the summer of 2008.

The two frigates were still in use in the Belgian navy.

BTA quoted "various sources" as saying that the deal would be political, meaning, at a very low price. "A sum of 54 million euro for the two frigates and the minesweeper is mentioned," BTA said.

The Belgian defense ministry said that it would be happy if the deal was completed.

So, after Croatia, the second launching customer is gone.

(sorry, don't understand the hyperlink trick anymore)

Have a nice trip

7seas