Prime Minister and Business Secretary welcome £700 million Hawk deal

Prime Minister David Cameron and Business Secretary Dr. Vince Cable have welcomed an agreement signed today between BAE Systems, Rolls-Royce and India's leading aerospace company, Hindustan Aeronautics Limited (HAL), to supply 57 Hawk trainer aircraft to India.

The deal is worth around £700 million, of which over £500 million is for BAE Systems and up to £200 million for Rolls-Royce. It will support over 200 jobs in the UK. It was announced at the HAL complex in Bangalore, southern India.

Prime Minister David Cameron said:

"I am delighted to witness the agreement between HAL and BAE Systems and Rolls-Royce. This is an outstanding example of India-UK defence and industrial partnership, and this agreement will bring significant economic benefits to both our countries. It is evidence of our new, commercial foreign policy in action."

BAE Systems Chairman Dick Olver said:

"BAE Systems is extremely pleased to have secured this follow-on order for Hawk. It reflects the long-standing successful relationship between BAE Systems and HAL and the importance of solid Government support. We are justifiably proud of this continued success for Hawk, the world’s most successful advanced jet trainer."

Dan Korte, Rolls-Royce President, Defence, said:

"This new agreement for the Adour engine further extends our long-standing relationship with the Indian Armed Forces and Hindustan Aeronautics Limited and we look forward to continuing to support our customer."

Today’s agreement to supply Hawk trainer aircraft follows on from a previous agreement in 2004 to supply 66 Hawk aircraft to India. The announcement is the centrepiece of a three-day visit to India by one of the most significant UK delegations ever to visit, led by the Prime Minister and including senior Cabinet ministers, business leaders and representatives from the worlds of sport, culture and academia. The aim of the visit is to launch an enhanced partnership with India, a central plank of the coalition Government’s foreign policy, of which defence cooperation is one part.

Business Secretary Dr. Vince Cable, who witnessed the signing of the agreement alongside the Prime Minister, said that he looked for further cooperation between the UK and India on defence.

"I am pleased that the Indian Government is considering the Eurofighter Typhoon for its medium multi-role combat aircraft. This bid has the full backing of UK Government," he said.

The Indian Government is considering the Eurofighter Typhoon in a bid that is supported by all four of the Eurofighter partner nations. The programme would be worth at least £5 billion for over 200 UK companies in the supply chain, and would support up to 5,000 jobs in the UK.

According to figures announced last week, the UK is the second largest supplier of defence equipment in the world. Defence sales generated £7.2 billion of sales in 2009, and some 54,000 jobs in the UK are linked to defence exports.

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