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GCAP | Industry Partners Reached a Landmark Agreement to Deliver Next-Gen Combat Aircraft
Defence Redefined
15/12/2024
BAE Systems (UK), Leonardo (Italy), and Japan Aircraft Industrial Enhancement Co Ltd (JAIEC) have reached an agreement to form a new company under a business joint venture for the Global Combat Air Programme (GCAP), subject to regulatory approvals.
The agreement builds on the strong trilateral partnership between the governmental, defence, and industrial sectors of the UK, Japan, and Italy regarding GCAP, established in December 2022.
The new joint venture will be accountable for the design, development, and delivery of the next-generation combat aircraft and will remain the design authority for GCAP for the life of the product, which is expected to go out beyond 2070.
BAE Systems, Leonardo, and JAIEC will each hold a 33.3% shareholding in the new joint venture, which will combine the combined strengths and expertise of three leading companies and mark a pivotal moment for the international aerospace and defence industry.
The new joint venture will have operations and joint teams working in each of the partner nations. It will be headquartered in the UK to ensure maximum alignment and cooperation with the GCAP International Government Organisation (GIGO), which will also be headquartered in the UK. Both entities will work together to support cost-effective and timely program delivery, including a 2035 aircraft in-service date.
According to the related announcement, GCAP is a hugely significant program for each nation’s security and economic prosperity. Through effective knowledge and technology transfer, it will help evolve and deliver important sovereign combat air capability in each nation for generations to come.
The joint venture is expected to be established by mid-2025. It shall undertake the design and development of the GCAP aircraft and subcontract the manufacturing and final assembly of the aircraft to BAE Systems, Leonardo, Mitsubishi Heavy Industries, and the wider supply chain.
Last but not least, the first CEO of the joint venture will be from Italy.
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