DCNS is a French defense company that has transitioned from state-owned to privately owned. It designs and builds complex naval systems like submarines and integrates technologies. DCNS aims to double its turnover over the next ten years by expanding into new markets like renewable energy while remaining a key partner to the French Navy. It seeks to consolidate the fragmented European shipbuilding industry and views partnerships and cooperation as important to growth and competitiveness against strong foreign competitors.
1. DCNS: AN AMBITIOUS COMPANY
DCNS is among the French
armament companies that has
undergone the most profound
changes in recent years. It has
managed its transition from a
state-owned company attached to
the administration, to a profitable
private company. DCNS!s culture
is one of results, like that of the
most successful private companies
in the world.
Managing complex programmes
daily, DCNS combines the
technical capabilities and human
skills that have made its expertise
world-renowned. Responsibility for
the design, maintenance and
manufacturing of a ballistic missile
launcher submarine, the most
complex system ever made by
man, positions the company as a
large systems integrator of
systems. In this regard, DCNS is
involved in nuclear deterrence, “an
intangible geopolitical given”
(Admiral Mill). Thanks to the
company!s engineers and
technicians, among others, the
group allows France to maintain
the technological credibility of
deterrence.
This valuable expertise allows
DCNS to chart its ambitions for
growth through a strategic course
over the next ten years. DCNS
aims to double its turnover. In this
context, the group will remain the
Navy!s partner of reference. It also
seeks to develop itself in highly
competitive sectors such as
international naval defence, civil
nuclear energy and renewable
marine resources.
The move towards ocean energy
stems from the fact that three-
quarters of the earth is covered by
seas. The marine group offers a
huge potential, while providing a
range of less expensive solutions
to European navies, which are
always on the lookout for
economies of scale.
This growth will be conditioned by
an overall improvement in the
group!s performance expected
over the next three years. DCNS!s
growth and gains in performance
will create wealth and jobs for the
company and its environment. To
do this, the company can rely on
its experience with the Navy, with
an MCO (maintenance in
operational condition) and
availability rate for ships that has
generally been rising over the past
three years (surface ships and
submarines alike).
The objective of this growth
strategy is to keep DCNS moving
in order to best position the
company in view of possible
European alliances.
Which consolidations in Europe?
While European defence budgets
tend to be decreasing, the military
shipbuilding industry continues to
experience relative growth. In fact,
Europeans have noted that in the
United States (35 per cent of the
global shipbuilding industry),
China and Russia, new doctrines
of missions for the Navy have
been published, further
legitimising the development or
launching of new programmes.
Aside from the United Kingdom,
European states have never
published Defence Industrial
Strategies (DIS), although France
updated its White Paper in 2008.
However, many programmes and
efficient industries do exist. Seven
European countries have a
significant military naval sector. If
British, French and German
industries stand out, Spain, Italy,
Sweden and the Netherlands also
have impressive groups. This
hierarchy results from the volume
of subsidies allocated by these
countries to marine equipment
because, like the defence
industry, the shipbuilding industry
depends heavily on orders from
States.
To avoid being outpaced by strong
competitors, such as the Koreans
or the Chinese, Europeans have
become aware of the urgent need
to consider intelligent
consolidation plans needed to win
on the export market.
The sector remains, in the words
of several national players, “too
fragmented.” It revolves, broadly,
around three main poles: the
United Kingdom, with BAe
Systems; Germany, with HDW
and Thyssen; Spain with Navantia
and France, with DCNS. The
future of European naval defence
lies among these poles. In
addition to existing partnerships
such as the Horizon Frigates or
FREMM (multi-mission frigates)
the Franco-British partnership is
high on the agenda.
E d i t o r : G u y P e r r i m o n d - C h i e f E d i t o r : G u i l l a u m e B e l a n - 4 N o v e m b e r 2 0 1 0
Bimonthly Newsletter on Defence and Strategy
i n t e r n a t i o n a l
w w w . t t u . f r
Supplement to TTU International n° 263
2. PAGE 2
DCNS
Supplement to TTU International n° 263 - 4 November 2010
DCNS, ENGINE OF THE NAVAL DEFENCE INDUSTRY
sites as subcontractors,
representing 80 per cent of the
sector in Brittany and 10,000 jobs.
The creation of the cluster can be
explained by the willingness of
major contractors to encourage
their suppliers to move from a
single activity to that of turnkey
capability. They task them with
various roles, including design,
supply, testing and operational
responsibility for all-inclusive
packages.
As Patrick Boissier points out,
subcontractors form a unit with
DCNS. For instance, a FREMM
represents 3 millions of working
hours each year and half of the
production is carried out under
contract.
FREMM under construction
The naval defence industry in
France represents a turnover of
more than five billion euros and
upwards of 40,000 jobs. In
September 2010, the minister of
industry was in fact at DCNS!s
facility in Lorient to launch the
“shipbuilding industry!s strategic
committee.” The minister wants to
give priority to French-made ships
and equipment and avoid
outsourcing in a strategic and
sensitive sector.
For its part, DCNS aims to double
its turnover; the development of
the company is certainly an
engine of economic growth in the
naval defence sector. Many
suppliers and subcontractors with
specific skills rely on this growth.
For DCNS president Patrick
Boissier, subcontractors “must be
involved from the design phase
and partnership agreements must
be established with key suppliers
in the long term. We must engage
with them in terms of duration and
volume, to enable them to invest
and to gradually reduce the cost
of their services.”
The naval pole in Brittany is
interesting. It includes 60
companies, as many different
A high-quality service offering
supply of spare parts to optimisation
or the construction of naval bases,
through modernisation of equipment
and extending ship life.
The strength of DCNS lies in its
teams of experts, who draw on more
than 350 years of experience in
naval military technology. This know-
how covers the entire lifecycle of the
ship, from the design phase through
to its decommissioning. DCNS is in
charge of operational maintenance
of the French Marine Nationale!s
first-rank ships (frigates, avisos,
patrol boats, projection and
command vessels, submarines ...).
On the other hand, DCNS designs,
operates and maintains the seaport
infrastructure on behalf of the
French Navy, and recently in Brazil,
Following the sale of a vessel,
whether a surface ship or
submarine, as well as naval
systems (e.g. countermining
warfare), DCNS offers support and
assistance to its customers in order
to reduce cost of ownership,
increase reliability and technical and
operational availability of ships
(training and exercise), maintain and
modernise vessels, extend ship life,
optimise infrastructures (both naval
bases as construction or
maintenance shipyards) and provide
full naval base services.
In order to do this, DCNS offers a full
range of services that combine
performance and competitiveness
and that are adapted and adjusted to
the needs of each client: from the
the group has been accompanying
the Brazilian Navy in the design and
implementation of its new
infrastructure (shipyards and naval
base), where the country!s future
submarines will be based.
Moreover, controlling major new
construction programmes in all
categories of ships—combat,
support and security— guarantees a
high level of maintenance with the
same performance and
competitiveness.
This makes it possible to maintain a
strong synergy between complex
processes and simpler ones when
the dual nature of the vessels
permits greater utilisation of civil
shipbuilding references.
3. Supplement to TTU International n° 263 - 4 November 2010
DCNS PAGE 3
THE VIRTUOUS CIRCLE OF PERFORMANCE
Multi-mission frigates
(FREMM), thanks to their
technology and weapons
systems, are a major DCNS
export product. Currently under
construction at the Lorient facility
(picture), a frigate of this class
has already been ordered by
Morocco and should be
delivered by 2013. As the most
advanced surface ship in the
French navy, the FREMM, with
its mixed propulsion (electric /
gas turbine for a maximum
speed of 27 knots) could also
find numerous opportunities on
the export market.
The FREMM programme!s
originality also lies in its
industrial architecture. The
project is being carried out in
cooperation with Italy, whose
frigates will be slightly different
in terms of design but share
equipment in common with
France.
FREMM for export
In May 2010, the FREMM
“Aquitaine” was set afloat.
Manufactured by DCNS at its
Lorient site with the support of all
the other yards of the group, the
ship, particularly stealthy both in its
materials and its design, was begun
in December 2007 and must be
delivered to the French Navy in
2012. After leaving its
construction form, the
“Aquitaine” was dry-docked for
fitting of its sonar bulb, rudders
and propellers. In addition,
work continues with weapons,
notably the installation of the
electronic warfare mast that
has just been completed.
Measuring 142 meters long,
with a 6,000-tonne
displacement, the “Aquitaine”
will be followed by 11 other
frigates of the same class, all to
be delivered by 2022. The fleet
will form the French naval
force!s future “soldiers of the
sea.” The weapons include
The FREMM programme: the “Aquitaine”
Among DCNS!s major strategic
transformations in its move
toward greater performance is
the innovative concept of
“competitive reinternalisation,”
unveiled by CEO Patrick Boissier
in December 2009. In the wake of
a “virtuous circle of performance,”
this “competitive reinternalisation”
aims to carry out part of the
production at DCNS yards rather
than contracting it out to low-cost
shipyards. “In a business such as
ours, I think we can be efficient
and competitive only by
controlling a major production
facility.”
This industrial policy is designed
to enable DCNS to attain,
internally, the same level of
overall economic performance as
with partial outsourcing to low-
cost shipyards. The challenge for
DCNS is to carry out industrial
activities in its core-sector, which,
by not being outsourced, can
initiate positive growth. This
means increasing the volume of
domestic production and
optimising the production
facilities, and better absorbing
structural costs. DCNS, which has
significantly invested to ensure
that its industrial structure is one
of Europe!s most modern ones,
maintains and develops a
successful and competitive
industrial base in France.
Aster, Scalp Naval and Exocet
MM40 Block 3 missiles, as well as
MU90 torpedoes and a 76-mm
turret. Each frigate will deploy an
NH90 helicopter. In this regard, the
FREMM is a programme of
excellence that fully demonstrates
DCNS!s integration capabilities.
FREMM Aquitaine
Inside the FREMM
4. Supplement to TTU International n° 263 - 4 November 2010
DCNS
PAGE 4
INNOVATION AND MASTERING COMPLEX SYSTEMS
CMSs well adapted to
every navies
DCNS-designed combat
management systems (CMSs) give
naval forces the capabilities needed
to successfully participate in joint
and allied missions. Building on
expertise acquired as the French
Navy!s long-term benchmark prime
contractor, DCNS proposes
evolvable CMS solutions for all
forms of naval warfare and a wide
variety of equipment configurations.
The Setis range is for multirole
surface combatants participating in
high-intensity operations (air threat
management, anti-submarine
warfare, deep strike, land attack,
etc.) and the Polaris range for
vessels designed for area
surveillance, policing and counter-
piracy missions.
It is impossible today to sell a
weapons system without adding
one or more technological bricks.
Defence continues to be a
technological leader for the
industry. Today, in order to carry
out technology transfers and
maintain its R&D investment, it is
essential to stimulate innovation.
That is why DCNS has developed a
partnership with PhD students at
the Naval Academy and the Ecole
Centrale de Nantes. Each year,
DCNS spends 70 million euros in
this area. R&D can not be
summarised through winning
tenders for preliminary studies, but
rather in building on long-term
training and validating know-how.
Research allows DCNS to develop
skills outside the field of defence,
such as bio-marine energy, or the
study of wave movements, in
environmental studies and
everything that relates to the sea. In
this regard, the SIGRAN project
looks promising.
In this regard, DCNS has secured
16 million euros in funding from the
European Commission for a
research project in the field of
maritime security: the “I2C” (Eye-
To-Sea). This project, which
involves 20 partners, among which
the Onera, will be spread over four
years and will study and evaluate
the implementation of a global
system for surveillance of regional
maritime areas and detection of
offenders. DCNS intends to confirm
with a demonstrator, under
development, the capability to
respond to security challenges in
the Mediterranean Sea.
The Scorpene is a submarine
powered with a new-generation
classic propulsion, developed by
DCNS in cooperation with the
Spanish shipyard Navantia for the
export market, with DCNS in charge
of the Scorpene design. Chile and
Malaysia have each already ordered
two of these submarines, and India
has ordered six Scorpenes along
with a technology transfer.
In Malaysia, the second submarine of
the Royal Navy, KD Tun Razak,
reached its naval base last July. The
journey from southern France to
Malaysia lasted 64 days.
The two Malaysian submarines with a
length of 67.5 metres and a
displacement of 1,550 tonnes are
operated by a 31-strong Malaysian
crew and have an endurance of 45
days. Training of the crew was
organised so that the Malaysian navy
would be ready to take possession of
its ships according to the
submarines! construction schedule.
This Scorpene programme confirms
DCNS!s submarine know-how in
Scorpene, Malaysia
managing complex naval
programmes. With 10 ships sold
worldwide, the Scorpene has
become a global benchmark for
conventional submarines (two for
Chile, two in Malaysia, six for
India).
Built in France and Spain, they are
produced according to the same
industrial process. They benefit
from innovations developed in
recent years on other programmes
and bring together the most
advanced technologies, notably in
the fields of hydrodynamics,
acoustic discretion and
automation. Their modular design
make the Scorpenes highly
adaptable to various mission
profiles and requirements.
In Brazil, the contract covers the
design and implementation of
technology transfers for four
conventional submarines
developed from the Scorpene
experience. The Brazilian contract
also includes assistance with the
design and implementation of the
non-nuclear part of the first
Brazilian nuclear-powered
submarine, while DCNS will also
provide support for the completion
of a naval base and a shipyard.
R&D: innovate in order to anticipate
The Scorpene and its variants
5. PAGE 5
DCNS
Supplement to TTU International n° 263 - 4 November 2010
INTERNATIONAL GROWTH
The Andrasta solution
Andrasta is a small coastal
submarine designed for the export
market. With a surface
displacement of 900 tonnes, the
ship is capable of operating
multiple weapons systems. The
submarine is specifically designed
for navies that do not have
submarine forces or that cannot
afford large submarines like the
Scorpene. With its proven and
reliable technologies, the
Andrasta is much cheaper than
the traditional 1500 to 2000 tons
submarines. The Andrasta can
cover 1,850 miles at eight knots
and 3,000 miles at four knots. At
this speed, it can remain
submerged, working on its battery
for 60 hours, its maximum
endurance being 15 days.
DCNS has made a remarkable
breakthrough on the worldwide
naval defence market (new
construction and services) with
significant orders, including with
“BRIC” countries (Brazil, Russia,
India and China). And the sector still
offers a potential for development of
more than three billion euros per
year. All maritime regions of the
world are considered by DCNS as
areas of growth, the group aiming to
become the world!s leading exporter
in the sector. In this regard, DCNS
relies on a policy of openness to
international cooperation that
combines local partnerships and
technology transfers. DCNS knows
how to implement sustainable
industrial cooperation. Its technology
transfers are not limited to deliveries
of kits, but real transfers of
competencies in the fields of design,
construction and maintenance as
well as modification of military naval
platforms with a technical assistance
that is adapted to each shipyard and
local context.
Many successes attest to the quality
of this expertise:
- Technology transfer for the
construction of six Delta frigates,
among which five for Singapore;
- Technology transfer with the
adaptation and modernisation of
Indian production facilities to
manufacture six Scorpenes;
- Creation of an autonomous entity
in partnership with the Malaysian
industry to ensure full support and
maintenance of Malaysia!s two
Scorpene submarines;
- Technology transfer for the
construction in Pakistan of two
submarines (the first having been
built in France) with a modernisation
programme that includes an AIP (Air
Independent Propulsion) on locally
built ships;
- Major Industrial Partnerships with
local industrials within the framework
of modernisation programmes for
the combat systems of the U-209s in
service in Latin America navies;
- Large-scale technology transfer in
Brazil for the construction of four
submarines derived from the
Scorpene, including construction of
production facilities and local
maintenance as well as support for
the design of a large submarine that
can be fitted with nuclear
propulsion, designed and built
by Brazil.
Capitalising on the Brazilian contract
Following several years of exploration, evaluation of needs and negotiation,
DCNS has won the largest contract in its export history in Brazil. This
success proves DCNS!s credibility, and opens a window of opportunity for
new prospects. The Brazilian contract provides a well-controlled transfer of
technology. The construction of the first of the four conventional submarines
derived from the Scorpene-class began in May at Cherbourg. The first part
must be completed in 2012 and the submarine will enter service in 2017.
Aside from the delivery of these submarines, the contract includes support for
design - under the design authority of the Brazilian Navy – of the non-nuclear
part of the first Brazilian nuclear-propelled submarine and assistance with the
completion of a naval base and a shipyard. The Brazilian submarine is a
version adapted to Brasilia!s requirements (80 days! patrol with a 35- to 50-
member crew), which required a longer version to carry more fuel and larger
living areas. The 6.7 billion-euro contract is to be carried out through the
creation of a joint-venture between the French manufacturer and the Brazilian
multinational Odebrecht. The joint-venture is owned 59 per cent by the
Brazilian company with DCNS responsible for the operational management. It
is through this company that DCNS is assisting and supporting the Brazilian
Navy in building a submarine base and a shipyard in Sepetiba, near Rio.
DCNS will also support Brasilia during the design and manufacturing phase
of a nuclear-propelled submarine, which will enter service in 2025. In this
regard, DCNS opened a design school in Lorient on 16 September. Over a
period of 18 months, the school will train around 30 engineers and Brazilian
officers in the design of a nuclear submarine, excluding the expertise of
propulsion. The nuclear part will be supplied by Brasilia. In the meantime,
150 Brazilian staff will be trained by DCNS over the next three years, mainly
in Cherbourg, for production activities, before joining the Brazilian shipyards.
6. Supplement to TTU International n° 263 - 4 November 2010
DCNS
PAGE 6
DCNS: A COMBAT-PROVEN LABEL
Within the context of coalition-led
military operations, projection is
a decisive factor. The BPC
concept combines a helicopter
landing dock, a floating hospital,
an amphibious assault ship,
troop transport and a command
vessel in a single platform. The
first two BPCs, “Mistral” and
“Tonnerre,” were commissioned
in 2006 and 2007 respectively.
The third of the class will be
commissioned in 2012. In May
2010, the BPC completed its
103rd rotation with Exercise
Corymbe in West Africa.
Projection Deterrence
The atomic bomb, with its power
and range, signalled the “end of
the relationship between power
and weight” (General Andre
Beaufre). Embarked in a nuclear-
powered, ballistic nuclear missile-
carrying submarine (SSBN), the
nuclear vector has absolute mobility
and total discretion. In addition to
political credibility, the invisibility of
the SSBN makes it a strong
psychological force of deterrence,
which protects national territory,
creating uncertainty and fear in the
mind of the opponent.
DCNS is maintaining and developing
its expertise in this area so that
France can keep its deterrence
DCNS and Carrier Vessel Battle Group
The aircraft carrier “Charles de
Gaulle,” in service since late 2000,
is the most sophisticated ship ever
built in Europe. It can deploy up to
40 aircraft, including the Rafale
fighter and Hawkeye surveillance
aircraft, and can catapult an aircraft
every thirty seconds. Its Senit
combat system is highly integrated
and features the Aster self-defence
missile. It is fitted with a powerful
communications system, including
Link 16, allowing the interoperability
with NATO forces. It can handle up
to 100 aircraft sorties per day, as it
did when it operated during the war
in Afghanistan.
In addition to the aircraft carrier
itself, DCNS is also at the heart of
the carrier vessel battle group!s
protection when deployed.
Especially during implementation of
frigates by the Marine Nationale,
including Forbin-type anti-aircraft
ships and even nuclear-powered
attack submarines (SSN). Like the
SSBN, the design and production of
aircraft carriers and escort SSNs
reveals the broad range of complex
know-how that DCNS offers.
The emergence of criminal and terrorist elements
threatening the security of multiple targets such as
oil rigs, merchandise convoys and undersea
pipelines is at the origin of the design of a new ship
by DCNS teams: a small vessel dedicated to these
new threats.
Capable of reacting quickly even in the context of
international operations, the Gowind family (1,000
to 2,500 tonnes) operates different capabilities:
implementation of unmanned aerial and surface
vehicles, quick launch and recovery of two fast
commando boats from its rear dock, 360-degree
next-generation panoramic vision from bridge,
satellite communication system integrated into
maritime surveillance networks, an architecture and
weapons designed and dedicated to asymmetric
threats, as well as a flexible mission system. All these
assets are determinants for countries that consider
their maritime interests and sovereignty to be
priorities.
capability. Thus, a new SSBN was
called to active duty on 20 September.
“Le Terrible” has begun a training
phase of several months, that will
soon been completed with its entry
into the operational patrols cycle. The
fourth and last ship of the SSBN
Triomphant-class, it will carry 16
ICBMs M51s (9,000 km range). Built
by DCNS, the SSBN type Triomphant
is 138 metres long.
Gowind: facing new threats
7. Supplement to TTU International n° 263 - 4 November 2010
DCNS
PAGE 7
INDIA: PARTNERSHIP “SERVICE” BECOMES REALITY
DCNS CEO Patrick Boissier was in
Bombay earlier this year to
inaugurate DCNS India, the French
group!s wholly owned subsidiary
specialised in naval services. The
group is in charge of a contract
providing technology transfers for
Scorpene submarines at Mazagon
Dock Shipyard Ltd (MDL). Six
submarines of this type will be
delivered by 2018 to the Indian
Navy under the P75 programme.
The contract, signed in 2005, covers
the licensing, construction,
technology transfer and delivery by
the French manufacturers of some
parts of the hull and the combat
system made by UDS International.
DCNS India will contribute to
technology transfers by providing
consulting services and technical
assistance and support for the
“sourcing” as well as the
qualification of Indian suppliers for
components and submarine
equipment. Beyond this programme,
DCNS India!s mission is to carry out
detailed engineering, consulting,
sourcing and procurement for other
projects that DCNS has with Indian
shipyards. It also plans to offer
similar services to DCNS units
abroad.
The creation of DCNS India reflects
the group!s willingness to accelerate
its international development and
specifically its presence in India by
easing the process of technology
transfer and reinforcing the strong
ties that the French group has with
Indian industry and engineering
manufacturing, both public and
private.
LATIN AMERICA: A PROACTIVE STRATEGY
With its success in Chile and Brazil,
DCNS now considers the Latin
American market as having high
potential. The International
Symposium Copona 2010, held in
Santiago, Chile in February of this
year, has clearly shown the group!s
willingness to develop its activities in
the region. DCNS has unveiled a
whole range of global solutions,
meeting various needs and
expectations of a booming
continent.
Providing global solutions in the field
of armed vessels, DCNS has
demonstrated its expertise to its
partners in ensuring their self-
defence against all types of threats
(terrorists or drug traffickers, pirate
attacks or strategic installations...).
These programmes include
FREMM, Gowind and the new family
of FM400 frigates. Moreover, DCNS
has innovative solutions for safety
and security in the maritime
environment, especially its
MATRICS offer (Maritime Traffic
Intelligence and Control of the Sea)
on the Gowind family OPVs
(Offshore Patrol Vessels). Thanks to
an elaborated intelligence
management, MATRICS offers
efficient maritime surveillance and
supports authorities in their
decision-making in terms of
appropriate and timely interventions.
MESMA INNOVATION: AN ASSET FOR EXPORT
The AIP MESMA (Autonomous
Sub-Marine Energy Module) is an
electrical power generator module
dedicated to conventional
submarines. It provides power for
both onboard and propulsion
systems, and also allows the
batteries to recharge without having
to resurface.
The MESMA AIP quadruples the
submerged endurance of a
conventional submarine, which
significantly expands its outreach
and improves the stealth of the
submarine operation.
For more than two years, the
MESMA has functioned perfectly
and demonstrated the expected
performance. The MESMA AIP has
been selected to power Pakistan!s
Agosta submarine.
The compact MESMA can be
integrated in the construction of a
new ship or during a retrofit or
upgrading operation.
MESMA notably features five
assets:
- Increased operational
performance: increased range and
submerged endurance, unlimited
diving depth;
- A sound discretion: the MESMA is
very quiet as it is integrated on a
structure that is isolated from the
hull thanks to an elastic
suspension;
- Compactness: integrated in a
single section of the submarine, it
offers an excellent power / volume
ratio;
- Security: no storage of hydrogen.
The MESMA is designed to meet
the strictest requirements in terms
of robustness and resilience to
shocks;
- Reliability: the MESMA has been
developed from mature
technologies that have been proven
by DCNS over many years.