Mitsubishi
Heavy Industries (MHI) (7011.T)
has designed a new suspension for the U.S. Army's Bradley Fighting Vehicle,
said two sources with direct knowledge of the
matter, potentially the first
Japanese defense hardware built for export in decades.
The design is
for an upgrade of the mainstay infantry carrier proposed by Britain's BAE
Systems (BAES.L).
If adopted, it would be the first Japanese component designed specifically for
a foreign military to be exported in seven decades.
MHI and other
Japanese defense companies are seeking overseas sales after Prime Minister
Shinzo Abe lifted a ban on arms exports two-and-a-half years ago. However, no
significant export deals have been secured yet.
"It could
be a pretty good deal for Mitsubishi Heavy," said one of the sources who
know about the partnership with BAE, asking not to be identified because he is
not authorized to talk to the media.
The U.S. Army
currently has around 6,000 Bradley Fighting Vehicles, and has asked BAE and
rival General Dynamics Corp (GD.N)
to submit proposals for new or upgraded vehicles to improve mobility, fire
power and survivability.
The sources
did not say how much the Japanese suspension will cost. Twelve of the
suspension components would be needed for the twelve road or "bogie"
wheels per vehicle to cushion its tracks.
BAE displayed
a prototype upgraded Bradley for the first time at the Association of the
United States Army exposition in Washington in October, where it also displayed
a mock up of MHI's suspension.
“It was simply
displayed alongside the vehicle and at this time remains an early prototype,
not a part of the vehicle,” said a spokesman for BAE Systems.
MHI did not
immediately respond to a request for comment.
MHI, the maker
of Japan's main battle tank, will gain new overseas avenues for its armored
vehicle technology through the partnership with BAE. Since the end of World War
Two, it has developed kit exclusively for the nation's Self Defense Forces.
However, that
limited market for battle tanks and armored vehicles has shrunk over the past
several years as Japan pivots to reinforcing islands along the southern edge of
the East China Sea instead of preparing for an invasion by Russian forces on
Japan's northern Hokkaido island.
MHI, the maker
of the World War Two-era Zero fighter, has been making armored vehicles for
Japan's military for eight decades.
In April, MHI
missed out on a chance to land a major foreign military contract after
Australia rejected a variant of its Soryu submarine in favor of a French design
for a planned new fleet of submarines.
However,
foreign companies have shown interest in MHI's gear technology and water jet
propulsion systems to drive armored amphibious vehicles, industry sources
earlier told Reuters.
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