buglerbilly
26-07-10, 10:03 AM
Munitions Firm Rides Trend Toward Safer Technologies
By TOM KINGTON
Published: 26 July 2010
ROME - Italy's Simmel Difesa is seeking this year to retain its strong market position in naval munitions with a series of innovations, including better targeting using microwave fuzes and "insensitive" explosives that ensure munitions do not accidentally explode while in storage.
And in the wake of its 77 million euro (then $102.5 million) takeover in 2007 by British company Chemring, Simmel also is due this year to open a new decommissioning site to destroy outdated munitions.
"Destroying old product is part of a bid to boost after-sales service, which we hope will change our relationship with the customer," said Carlo Piscitelli, Simmel's CEO.
Founded in 1948, Simmel has built a solid order book by selling naval munitions to users of the 40mm, 76mm and 127mm guns built by fellow Italian firm Oto Melara. Exports take a 70 percent slice of Simmel's order book, evenly split between NATO and non-NATO countries.
In 2009, it sold 11 million euros worth of 40mm and 76mm ammunition to the navies of Italy, France, India, Singapore and Colombia.
Based in the rolling countryside south of here, Simmel is Italy's soler maker of medium- to large-caliber am-munition, producing 300,000 rounds a year.
The profit-making company is seeking to up its game with the first sale of microwave-fuzed, "insensitive" 76mm munitions. Launch customer France will qualify the munition before deploying it on its FREMM frigates.
"Microwave insensitive munitions are the future for us," Piscitelli said.
One analyst said that offering insensitive munitions is essential in today's market.
"Armed forces have a decreasing appetite to carry commercial munitions, which have a high risk of exploding in the case of accidents," said London defense analyst Sash Tusa.
Before the firm turned to microwaves, the fuzes that Simmel placed in the nose of its naval munitions emitted radio signals to detect when a target was close, before triggering detonation.
"Switching to microwave signals means more precision and less chance of being disturbed by radar signals and by reflections from the sea," Piscitelli said.
To ensure the munitions do not blow up before they are fired, Simmel also is using so-called insensitive materials, which can resist the impact of bullets as well as "sympathetic detonation" when a nearby munition detonates. Simmel's new munition also is resistant to fire and slow increases in temperature.
Simmel first developed its insensitive explosives for use in the warheads it makes for Aster missiles for the Principal Anti-Air Missile System, on Britain's Type 45 destroyers and Horizon frigates built by France and Italy. Qualification of the warhead concluded last year, full production commenced and more than 200 were delivered.
"Missiles are the Ferraris of our range, where we can carry out the R&D before trickling down the benefits to our munitions," Piscitelli said. "We are now the only European firm making insensitive naval munitions."
Simmel's work on insensitive explosives is in part derived from the chemical expertise of BPD, the Italian firm that Simmel absorbed in the 1990s, along with fuze maker Borletti.
At the time, Simmel was owned by Italy's Fiat Group, which bought the firm in 1988 before selling it in 2000. In 2007, Chemring stepped in.
"Our strategy was to partner with prime contractors in the munitions segment and position ourselves as a strong supplier controlling critical technologies," said Rik Armitage, the business development director at Chemring, which produces explosives and decoys. "Simmel's ownership and control of its fuzes is an example."
To create synergies, Simmel may partner with Chemring-owned firm Nobel to obtain its insensitive explosives, Armitage said. Simmel previously worked with European company Eurenco.
"Navies are at the vanguard of insensitivity because they cannot dump their ammunition in airfields," Armitage said. "But it is going to be important for all munitions, down to grenades, so that is why it is important to lead this sector."
On the missile front, Simmel began full-rate production last year and delivered more than 500 motor safety initiators for the IRIS-T air-to-air missile, produced by Germany's Diehl BGT Defence. A motor safety initiator is a rotating barrier between the squib, or explosive charge, and the propellant in the missile's engine.
With 10 percent of its revenues derived from missile work and 40 percent from naval work, the other half of Simmel's production comes from land munitions, starting with the 120mm HEAT anti-tank munition, which can penetrate 40 centimeters of armor using a bolt of super-heated liquid copper. Sales of the HEAT munition in 2009 were boosted by two contracts from NATO's Maintenance and Supply Agency.
Simmel also has won multiple contracts for its 81mm mortar illumination rounds from the British Army.
Piscitelli said that Simmel is looking at producing explosive mortar shells.
"Just as the Cold War really pushed the size of munitions larger and larger, today's asymmetric war is doing the opposite," he said.
"155mm cannons were not used in Iraq or Afghanistan, and anti-tank weapons do not get used much in Afgha-nistan," Piscitelli said. "But there are plenty of mortars. We need to focus on 60mm and 81mm mortars and 40mm launched grenades, using the same insensitive explosive technology."
Armitage said he also expects armies to seek insensitive munitions for use in Afghanistan.
Simmel's marketing drive also includes taking old munitions off customers' hands for destruction. Following a 10 million euro investment, the firm plans to open a new facility by year's end at a former Winchester bullet factory in nearby Anagni for the disposal of outdated munitions from missiles due for refurbishment.
"We are installing ovens to dispose of the munitions, and systems to treat the resultant gases," Piscitelli said. "It all forms part of a greater relationship with the customer, and could account for 10 percent of revenue when it is under way."
Tusa said the market's shift to insensitive munitions would boost Simmel's decommissioning business.
By TOM KINGTON
Published: 26 July 2010
ROME - Italy's Simmel Difesa is seeking this year to retain its strong market position in naval munitions with a series of innovations, including better targeting using microwave fuzes and "insensitive" explosives that ensure munitions do not accidentally explode while in storage.
And in the wake of its 77 million euro (then $102.5 million) takeover in 2007 by British company Chemring, Simmel also is due this year to open a new decommissioning site to destroy outdated munitions.
"Destroying old product is part of a bid to boost after-sales service, which we hope will change our relationship with the customer," said Carlo Piscitelli, Simmel's CEO.
Founded in 1948, Simmel has built a solid order book by selling naval munitions to users of the 40mm, 76mm and 127mm guns built by fellow Italian firm Oto Melara. Exports take a 70 percent slice of Simmel's order book, evenly split between NATO and non-NATO countries.
In 2009, it sold 11 million euros worth of 40mm and 76mm ammunition to the navies of Italy, France, India, Singapore and Colombia.
Based in the rolling countryside south of here, Simmel is Italy's soler maker of medium- to large-caliber am-munition, producing 300,000 rounds a year.
The profit-making company is seeking to up its game with the first sale of microwave-fuzed, "insensitive" 76mm munitions. Launch customer France will qualify the munition before deploying it on its FREMM frigates.
"Microwave insensitive munitions are the future for us," Piscitelli said.
One analyst said that offering insensitive munitions is essential in today's market.
"Armed forces have a decreasing appetite to carry commercial munitions, which have a high risk of exploding in the case of accidents," said London defense analyst Sash Tusa.
Before the firm turned to microwaves, the fuzes that Simmel placed in the nose of its naval munitions emitted radio signals to detect when a target was close, before triggering detonation.
"Switching to microwave signals means more precision and less chance of being disturbed by radar signals and by reflections from the sea," Piscitelli said.
To ensure the munitions do not blow up before they are fired, Simmel also is using so-called insensitive materials, which can resist the impact of bullets as well as "sympathetic detonation" when a nearby munition detonates. Simmel's new munition also is resistant to fire and slow increases in temperature.
Simmel first developed its insensitive explosives for use in the warheads it makes for Aster missiles for the Principal Anti-Air Missile System, on Britain's Type 45 destroyers and Horizon frigates built by France and Italy. Qualification of the warhead concluded last year, full production commenced and more than 200 were delivered.
"Missiles are the Ferraris of our range, where we can carry out the R&D before trickling down the benefits to our munitions," Piscitelli said. "We are now the only European firm making insensitive naval munitions."
Simmel's work on insensitive explosives is in part derived from the chemical expertise of BPD, the Italian firm that Simmel absorbed in the 1990s, along with fuze maker Borletti.
At the time, Simmel was owned by Italy's Fiat Group, which bought the firm in 1988 before selling it in 2000. In 2007, Chemring stepped in.
"Our strategy was to partner with prime contractors in the munitions segment and position ourselves as a strong supplier controlling critical technologies," said Rik Armitage, the business development director at Chemring, which produces explosives and decoys. "Simmel's ownership and control of its fuzes is an example."
To create synergies, Simmel may partner with Chemring-owned firm Nobel to obtain its insensitive explosives, Armitage said. Simmel previously worked with European company Eurenco.
"Navies are at the vanguard of insensitivity because they cannot dump their ammunition in airfields," Armitage said. "But it is going to be important for all munitions, down to grenades, so that is why it is important to lead this sector."
On the missile front, Simmel began full-rate production last year and delivered more than 500 motor safety initiators for the IRIS-T air-to-air missile, produced by Germany's Diehl BGT Defence. A motor safety initiator is a rotating barrier between the squib, or explosive charge, and the propellant in the missile's engine.
With 10 percent of its revenues derived from missile work and 40 percent from naval work, the other half of Simmel's production comes from land munitions, starting with the 120mm HEAT anti-tank munition, which can penetrate 40 centimeters of armor using a bolt of super-heated liquid copper. Sales of the HEAT munition in 2009 were boosted by two contracts from NATO's Maintenance and Supply Agency.
Simmel also has won multiple contracts for its 81mm mortar illumination rounds from the British Army.
Piscitelli said that Simmel is looking at producing explosive mortar shells.
"Just as the Cold War really pushed the size of munitions larger and larger, today's asymmetric war is doing the opposite," he said.
"155mm cannons were not used in Iraq or Afghanistan, and anti-tank weapons do not get used much in Afgha-nistan," Piscitelli said. "But there are plenty of mortars. We need to focus on 60mm and 81mm mortars and 40mm launched grenades, using the same insensitive explosive technology."
Armitage said he also expects armies to seek insensitive munitions for use in Afghanistan.
Simmel's marketing drive also includes taking old munitions off customers' hands for destruction. Following a 10 million euro investment, the firm plans to open a new facility by year's end at a former Winchester bullet factory in nearby Anagni for the disposal of outdated munitions from missiles due for refurbishment.
"We are installing ovens to dispose of the munitions, and systems to treat the resultant gases," Piscitelli said. "It all forms part of a greater relationship with the customer, and could account for 10 percent of revenue when it is under way."
Tusa said the market's shift to insensitive munitions would boost Simmel's decommissioning business.