Aerospace and defence opportunities in Scotland - Scottish ...

Aerospace
and defence
opportunities
in Scotland

02
Introduction
Scotland’s aerospace and defence capability
Scotland’s aerospace and defence
industry is one of the most vibrant and
successful sectors of UK business.
Recognising the opportunities for
growth amongst companies which
have a key role to play in the 21st
century marketplace, the industry
and Scottish Government have
worked closely to develop and deliver
a strategy aimed at maximising
Scotland’s potential in the sector.
A number of factors have combined to
position Scotland as a key player and
to increase its profile as a location
for aerospace investment.
Excellent infrastructure –
specifically its four international
airports – combined with a skilled
and cost-competitive workforce,
an extensive programme of
research and development, a track
record in leading-edge electronics
and a mature supply chain
have helped to deliver a vibrant
sector which attracts investment
from some of the world’s
largest companies.
World-famous manufacturers
such as BAE Systems, Spirit Aero
Systems (Europe) Ltd and Rolls
Royce are already based in Scotland
alongside specialist companies
such as Thales and Raytheon and
major names in MRO including
British Airways, GE and the
Goodrich Corporation.
As the sector adapts and develops
to address the changing demands of
the modern marketplace, Scotland
offers a wide range of opportunities
and benefits.

Contents
· A world-class industry
· Avionics and defence –
powerhouses of the industry
· Manufacturing,
· Research
· UAVs
· Universities,
· Support
design and MRO –
excellence in action
& development and space –
pushing the boundaries
and composites –
vital development
people and skills –
specialist knowledge and expertise
and infrastructure –
how can SDI help?
· Contact details
p 2&3
p 5&6
p 7
p 8&9
p 10&11
p 12&13
p 14&15
p 16
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04
Key facts
· The UK has the world’s largest aerospace industry
outside the USA, and the aerospace sector is the
second largest contributor to the UK economy
after pharmaceuticals
· Scotland accounts for approximately 10% of the
UK aerospace industry
· Scotland is home to around 170 companies in
the aerospace, defence and naval sectors, and
employs around 16,000 people
· Employment in the Scottish aerospace, defence
and naval sectors grew by 8.5% in 2006
· 32% of people employed in these industries are of
graduate level or equivalent, amounting to more
than 5100 people
· Scotland is a centre of excellence for manufacture,
repair and overhaul services, and the fastestgrowing
part of the industry in this country.

Avionics
Scotland’s well-established electronics
industry has an excellent reputation
for quality and innovation and offers
a number of advantages for avionics
companies looking to locate here. In
particular, the existence of a large,
skilled workforce with expertise in
associated key areas such as software,
digital media and games technology is
a major benefit and has already been
instrumental in attracting some of the
sector’s leading global players.
Scotland’s workforce boasts expertise
across a range of disciplines
including defensive systems, opto and
optoelectronic engineering, laser, radar
and remote sensing, photonics, software
development, flight control systems,
missiles and weapons and microwave
and radio frequency systems. In addition,
leading-edge research, design and
manufacturing facilities for the avionics
sector are on offer at several locations
across Scotland and there are a variety of
opportunities for both research projects
and commercial collaborations.
A radar is tested in SELEX Galileo’s Compact
Antenna Test Range (CATR).
SELEX Galileo
As one of Europe’s foremost defence
electronics companies, SELEX Galileo is a
leader in the supply of electronic systems
for military platforms in air, at sea or on
land. The company is a major supplier to
several military aircraft, land and naval
programmes, serving an international
range of military forces.
SELEX Galileo’s site in Edinburgh is home
to the UK’s largest defence electronics
business and has a reputation for
producing high-quality sophisticated
technology. The Radar and Advanced
Targeting Line of Business based at
Edinburgh brings together an established
yet diverse range of products such
as Eurofighter Radar, where it jointly
forms in excess of 50% of the Euroradar
consortium, as well as Infrared Counter
Measures (IRCM), Lasers, Seaspray 7500
and Seaspray 7300. In March 2009 SELEX
Galileo’s Vixen 1000E was selected for
SAAB’s Gripen Next Generation (NG)
programme.
SELEX Galileo’s innovative approach
has attracted a host of new customers
whilst maintaining a firm foundation of
existing business. A significant contract
with the US Coast Guard was secured
thanks to the development of a new
breed of active electronically scanned
array based products. In addition, SELEX
Galileo’s lightweight miniature radar,
PicoSAR, has been specifically designed
for small, unmanned airborne platforms
or helicopters. Edinburgh also produces
the leading edge Nemesis system which
protects aircraft and helicopters from
infrared missiles and an advanced
technology targeting laser for Lockheed
Martin’s F-36 Joint Striker Fighter.
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Defence
Scotland is well positioned to exploit
the opportunities which will arise as
the global defence industry continues
to develop in response to the changing
environment of the 21st century.
With many of the top 12 global aerospace
and defence companies having facilities
here, Scotland is ideally placed to support
this transformation.
Defence accounts for about 30 per cent of
the aerospace, defence and naval sector
in Scotland, and generated £684 million
in 2006. Over 4000 people (20 per cent of
those employed in the Scottish aerospace
industry) work in the defence sector and
14 per cent of sales – some £72 million –
is invested in research and development.
Scotland has strong links into key UK
sector development activities in process
excellence and supply chain development.
A number of major developments are also
being progressed, including the multi-
billion-pound project to design, develop
and construct the Royal Navy’s new fleet of
aircraft carriers.
Edinburgh is home to SELEX Galileo’s laser
centre of excellence which is leading the
way in developing the next generation of
laser targeting technologies.
The sector in Scotland also offers a number
of opportunities for collaboration. SELEX’s
Edinburgh site houses the Electro Magnetic
Remote Sensing Defence Technology
Centre (EMRS DTC), a consortium of
industry and academic partners, headed on
behalf of the MOD by SELEX Sensors and
Airborne Systems. The Centre is focused
on research into cost-effective sensor
technologies which may exploit any part
of the electromagnetic spectrum in order
to substantially improve the MOD’s ability
to detect and identify potential military
targets at long range and in adverse
weather conditions.
Raytheon Systems Ltd
Raytheon Systems Limited’s electronics
facility in Glenrothes, Fife, has over 40 years’
experience in the design, development and
manufacture of a wide range of integrated
electronics components and equipment.
Specialising in markets where integrity and
reliability are critical, Raytheon also provides
a full electronic manufacturing service for
the defence and aerospace industries.
In the defence field, current work
programmes include the Control Section
for AMRAAM (Advanced Medium Range
Air-to-Air Missile), and components for UK
Tomahawk TLAM, for which Glenrothes is
the sole UK supplier. Commercial activities
include power products for the International
Space Station.

Manufacturing and design
Scotland employs approximately 10,000
people in aerospace manufacturing and
design and its strengths encompass a
range of areas including mechanical,
hydraulic, electrical, aerostructures and
electronics.
That expertise is demonstrated by
Scottish companies across a number of
fields, including fixed leading-edge wing
assembly, microwave and RF components,
aero engine components and assembly,
flexible circuits, rotary wing hydraulic and
pneumatic systems, fuel components and
systems integration.
MB Aerospace Holdings
Motherwell-based MB Aerospace is a world-
class provider of supply chain management
in design, development, integrated
manufacturing solutions and component
manufacture. The company employs over
100 personnel at two sites and specialises
in the manufacture, test and assembly of
defence and commercial aerospace systems
and components.
MB Aerospace’s high standards and
commitment to customer service have
enabled it to secure Preferred Gold Supplier
status from aircraft manufacturer Boeing,
making it one of only three European
companies to hold the status and one of only
20 organisations worldwide.
Maintenance, repair and overhaul
Scotland’s share of the worldwide
maintenance, repair and overhaul (MRO)
market is around 4 per cent, with civil
MRO in Scotland accounting for 66% of
aerospace sales – some £646 million – in
2006.
MRO has long been recognised as a
significant opportunity for growth within
Scotland’s aerospace sector and a centre of
excellence has been successfully developed
around Prestwick in the west of the country.
The ‘aerospace corridor’ between Glasgow
and Prestwick is home to many of the
leading names in the global industry
including British Airways Maintenance
Glasgow, which operates a key facility for
its narrow-bodied Airbus fleet, Rolls-Royce,
which undertakes MRO on military and
commercial engines such as the V2500, and
East Kilbride Engineering Services, which
provides design and analysis on the JSF and
Nimrod military aircraft.
Spirit Aerosystems (Europe)
Spirit Aerosystems now has its European
MRO headquarters at Prestwick, part of
a larger facility which employs around
750 people and specialises in advanced
aerostructures for fixed leading edges and
design engineering. The facility produces
Boeing’s new contract enhances MB
Aerospace’s existing links with the
aircraft manufacturer, adding to the
company’s current orders with Boeing
Integrated Defense Systems of St. Louis,
USA. The work will focus on supplying
several variations of launch systems
for the Boeing Harpoon programme,
including the supply of torpedo launch
systems for submarine platforms.
MB’s contract with Boeing is in addition
to a multi-million-pound deal agreed
with Rolls-Royce, which will see it
supply rings for civil, defence, marine
and energy engines to be used in
aircraft including the Harrier, Hawk
and Boeing 747-400.
structural components for the Airbus A320,
A330, A340 and A380 families of aircraft.
The site provides customers in the
commercial aerospace market with
airframe structures. At manufacturing and
engineering levels, this involves producing
leading and trailing edges for Airbus wing
assemblies, leading edge production for
Boeing wings and the manufacture of
tailplane, ventral tanks and other items for
the Raytheon Aircraft Company.
In addition, the company has also established
its Composites Development Centre, a new
research and development facility.
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08
Research and development
In 2005 alone, £91 million was invested
in aerospace research and development
in Scotland.
The country’s R&D activities are of vital
importance in helping to support and
develop an industry which is so heavily
reliant on innovative technology to drive
home competitive advantage.
Scotland can offer expertise across a
wide range of technologies applicable
to the sector, including electronics,
optoelectronics, micro-electronics and
energy sources, with particular strengths
in areas such as advanced aerospace
materials and structures, aerodynamics
and computational fluid dynamics,
sensor technologies, systems
engineering, autonomous systems and
maintenance, repair and overhaul.
The Advanced Forming
Research Centre (AFRC)
The Advanced Forming Research
Centre is a partnership of the
University of Strathclyde’s
department of Design, Manufacture
and Engineering Management, the
Mechanical Engineering department
and global industrial manufacturing
companies.
Modelled on the highly successful
Advanced Manufacturing Research
Centre developed with Boeing in
the UK, the AFRC is designed to
be a beacon for engineering and
manufacturing excellence and to drive
improvements in performance and
profitability of UK industry. It focuses
on a range of areas including primary
techniques, technologies, supply chain
issues, processes and design tools.
Rolls-Royce and Airbus have played
a major part in shaping the centre
and the aim is to enable the industrial
partners to drive the research
and industrial support agendas,
with the University of Strathclyde
delivering world-class support
from within its own teams and its
world-wide partners.

Space
Scotland’s world-class research,
development and manufacturing enable it
to make a significant contribution to space
technology, with Scottish companies
and research organisations making
exceptional strides in space-related
technology and development over a
number of years.
Key factors helping Scotland to
outperform larger countries in this area
include a well-established infrastructure
and long-standing tradition of innovation.
The country’s universities are involved in
a range of activities relevant to the sector.
Dundee University has a department
specialising in space technology and its
ground observatory is used by NASA to
track spacecraft during missions, while
Glasgow University houses a space
STAR-Dundee
STAR-Dundee, which has its origins as
part of University of Dundee’s Space
Technology Centre, developed SpaceWire,
an innovative technology of major
importance for communications networks
on board spacecraft.
The system is now being used on many
European Space Agency (ESA), NASA and
mission analysis design department
headed by Dr Gianmarco Radice, a leading
expert in space engineering.
The Advanced Space Concepts
Laboratory, based at the University of
Strathclyde’s Department of Mechanical
Engineering, is a new €2 million research
centre funded by the European Research
Council.
The centre will further expand its team
in 2009 and will conduct a five-year
programme of frontier research on
visionary space systems through an
investigation of the orbital dynamics of
spacecraft at extremes of length-scale.
Clyde Space
Clyde Space, based at Glasgow’s
West of Scotland Science Park,
Japan Aerospace Exploration Agency
(JAXA) spacecraft and by research
organisations and the space industry
across the world. It has been employed
on a wide range of missions, including
Bepi Colombo, Earthcare and GAIA from
ESA; James Webb Space Telescope,
Lunar Reconnaissance Orbiter, GOES-
RT and SWIFT from NASA; and Bepi
Colombo MMO and NeXT from JAXA.
provides affordable, high-performance
subsystems for small satellites and
microspacecraft. The company’s off-the-
shelf products – which include spacecraft
power systems, small satellite battery
systems and other digital and analogue
systems – have been used on a number
of space missions worldwide.
Clyde Space also offers innovative
bespoke solutions and consultancy
services based on its extensive
experience of micro spacecraft
platforms.
The CubeSat system – a 1 kg
100x100x100mm cuboid spacecraft unit
– offers faster and lower-cost access to
actual space missions when compared to
traditional small satellites and has been
the basis of over 40 missions since 2003.
STAR-Dundee provides a range of
support equipment and services for
users of SpaceWire and its team has
established a global reputation within
the sector by creating new products
which meet the needs of spacecraft
designers. The company has won
two SMART awards from the Scottish
Government in recognition of its cutting-
edge technology.
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Unmanned aerial vehicles
Scotland’s expertise in related sectors provides significant potential for future
development in both the civil and defence-oriented UAV sector.
Key factors in growing the UAV market are Scotland’s skills base – around 2000
people – with experience in civil aircraft manufacturing and regulation as well as
world-leading expertise in the field of sensor technology, an area of the aerospace
industry which is currently attracting increasing investment globally.
In addition, technologies and skills being developed by Scotland’s vibrant and
innovative energy sector are also transferable to the aerospace industry.
BAE Systems Regional Aircraft
The civil aerospace arm of defence company BAE Systems is based at Prestwick
Airport. BAE Systems Regional Aircraft has unique capability in the field of
civil aircraft regulation and certification developed through design, production
and support of a number of passenger aircraft. This capability is being utilised
to understand the requirements for unrestricted use of UAVs in civil airspace
through the ASTRAEA government-supported research programmes.
Regional Aircraft is also involved in substantial work packages on the Future
Carrier (CVF) from BVT Surface Fleet to add to its existing Nimrod MAA4 work and
increasing levels of consultancy on both aviation and non-aviation projects.
Thales
Glasgow-based Thales Land and Joint Systems design and manufacture the
electro-optical systems and equipment which form the sensor suites deployed
on the Watchkeeper UAV. The largest UAV programme in Europe, Watchkeeper
provides a range of day and night capability in Intelligence, Surveillance, Target
Acquisition and Reconnaissance (ISTAR) missions and around 50 of these UAVs
are expected to be utilised by British Armed Forces in the future.
Nimrod simulator & training facility at Kinloss. Image supplied by Thales. Top right: European Fighter Aircraft (EFA) helmet,
inner fitting produced by Slingsby.

Composites
Scotland hosts more than 45 companies
in the composite materials supply chain
operating across the energy, aerospace,
marine, automotive and construction
sectors.
Activities include manufacture of carbon
fibres, design engineering, integration
of manufactured composite products
and conversion of technical textiles.
The latter is an area which is currently
enjoying strong growth and is also one
in which Scotland sees rich potential
due to its significant capabilities in
carbon and polypropylene fibres and an
emerging capacity in textile preforms
and cores.
In the global supply chain, Scotland is
effectively the local supplier to major
composite end users based in the UK
such as Airbus, Bombardier and GKN
which is enabling Scottish companies
to build strong customer relationships
with the sector’s key players.
Slingsby Advanced Composites
Slingsby Advanced Composites designs
and manufactures structural composite
products to provide problem-solving
solutions for the aerospace and defence
industries.
Slingsby specialises in unmanned
airframe vehicle aerostructures,
fixed and rotary wing helmets, civil
aerospace aerostructures, emergency
door systems and stealthy structures
for naval defence applications. In
2008, the company announced plans to
further expand its aerospace portfolio
by opening a major new facility
in Prestwick.
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Scotland’s universities
The well-established reputation for
innovation and collaboration which
Scotland’s academic sector enjoys
is particularly in evidence within the
aerospace industry.
Scotland’s 14 universities have expertise
and experience across a variety of
aerospace disciplines, produce a high
number of engineering and aeronautical
graduates and carry out groundbreaking
research and development.
A large number of research programmes
are currently under way across Scotland’s
academic sector, including:
Glasgow University
The Aeronautics and Fluid Mechanics
Department at Glasgow is recognised as
one of the world’s leading research and
development facilities, with a significant
track record of innovation in aeronautical
engineering. As one of only three in the
UK to be endorsed by BAE Systems, the
department’s key fields include low and
high-speed aerodynamics, avionics,
flight systems and non-linear dynamics,
solar sail technology and blade vortex
interaction.
Edinburgh University
Edinburgh’s Department of Mechanical
Engineering has particular strengths in
computer controlled electro-mechanical
solutions, as well as engineering
design. The University is also home to a
dedicated Centre for Defence Studies.
Strathclyde University
The Institute of Photonics at Strathclyde
bridges the gap between university
and commercial research, including
research into all-solid-state light
sources and applications such as
countermeasures and sensors. The
Mechanical Engineering Department
undertakes space research and is
home to the new Advanced Space
Concepts Lab.
Aberdeen University
Aberdeen’s Department of
Engineering conducts ground-breaking
research in a variety of areas including
optoelectronics, colour holography,
optical metrology, optical materials
characterisation and optical methods of
nondestructive evaluation.
University of the
West of Scotland
The University of the West of
Scotland’s Department of Mechanical
and Manufacturing Engineering
specialises in composite materials.
University of Abertay Dundee
Abertay’s School of Engineering
works in close collaboration with a
number of aerospace companies,
including BAE Systems, and specialises
in pioneering work on advanced
microdisplays and wearable displays,
communications technology and optical
information processing.

People and skills
As well as a tradition focused on innovation and entrepreneurship,
Scotland can offer aerospace companies a workforce which boasts
a high level of specialist expertise. Within the Scottish aerospace
industry, there are rising productivity levels supported through
collaborative working and sharing of best practice.
The country’s skilled labour force is one of the best-trained, most
reliable and most cost-competitive in the world, and is being
further augmented by a constant stream of engineering and
aeronautical graduates from its world-class universities.
Clear evidence of government support for the industry and
recognition of the key role it has to play in the future health of
Scotland’s economy can be seen by the fact that 500 apprentices
are currently in training to meet the sector’s needs.
Optronic mast being fitted to HMS Astute. Image supplied by Thales.
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Interventions and support
Regional Selective Assistance
Regional Selective Assistance
(RSA) grants offer funding towards
investment which will create or
safeguard jobs.
Around £100 million was awarded in
2006/07 and money was allocated to a
huge range of companies, from large
corporations to SMEs.
Proof of Concept
Great ideas sometimes need a helping
hand to get off the ground. That’s why
Proof of Concept funding is available
to university researchers to help
turn ideas into commercially viable
projects.
Successful applicants are given help in
the first stages of commercialising or
market-researching their technology
and Proof of Concept also acts as a
R&D funding
R&D funding can provide up to a
quarter of the cost of research and
development projects in Scotland.
This valuable financial support can
cover the costs of everything from
buildings and people to technology
and equipment – along with any
associated outsourcing expenditure.
gateway to investment by venture capital
companies.
Training Plus
Scottish Enterprise’s Training Plus
initiative provides funding to help with the
cost of staff development and training.
Grants can be awarded for up to 50% of
expenditure on training for generic skills,
or up to 25% if the training is company-
specific.
ITI Techmedia
Backed by a ten-year, £450 million
investment by the Scottish Government in
three Intermediary Technology Institutes,
ITI Techmedia sponsors research in
digital media and communications. It
is commercially focused and market-
driven – and dedicated to supporting the
creation and marketing of successful new
intellectual assets which will boost the
Scottish economy.
Equity Funding
Various equity funding schemes exist in
Scotland such as the:
• Scottish Seed Fund – funding between
£20,000 and £100,000
• Scottish Co-Investment Fund – investment
between £100,000 and £1 million
Enterprise Area
Prestwick International Aerospace
Park is situated within a newly created
Enterprise Area. Occupying a strategic
site adjacent to Glasgow Prestwick
International Airport, the Aerospace
Park is a 34 hectare site capable of
accommodating up to 70,000 square
meters of commercial property within
a high quality, superbly located and
landscaped environment.
The Enterprise Area offers business
rates relief of up to 100% (which
could be worth as much as £275,000
per business) up until March 2017,
alongside other benefits such as a
swift planning process.
For more information please visit
www.sdi.co.uk/invest-in-scotland/
enterprise-areas.aspx
• Scottish Venture Fund – investment
of £500,000 to £2 million in deals
between £2 million and £10 million.
Find out more about the wide range
of funding and support available in
Scotland at:
www.scottish-enterprise.com

Industry associations
SBAC Scotland
SBAC Scotland is the trade association
for the aerospace, defence, space
and naval sectors in Scotland.
Established in 2005, it aims to provide
a focal point for the aerospace and
defence sectors and is intended to
help accelerate skills, workforce
development and market awareness in
Scottish aerospace in order to deliver
measurable competitive advantage and
business benefits.
Infrastructure
A key factor in the robust health of
Scotland’s aerospace industry is
the strength and quality of its four
international airports in Glasgow,
Edinburgh, Prestwick and Aberdeen,
plus key regional airports in
Inverness and Dundee.
Edinburgh handles nearly nine
million passengers a year on some
39 airlines to 75 destinations and is
Scotland’s busiest airport.
Scottish Engineering
Scottish Engineering is the main support
and lobbying organisation for the
manufacturing engineering industry in
Scotland.
Scottish Manufacturing
Advisory Service (SMAS)
SMAS was created to raise awareness
of best practice in manufacturing
through training and seminar activity
and to provide one-to-one advisory
With around eight million passengers in
the past year and 17 airlines operating
to 54 destinations, Glasgow Airport is
Scotland’s second biggest facility.
services for small and medium-sized
enterprises including advice on how best
to increase growth, exploit new business
opportunities and generate additional
revenue.
In working to improve the competitiveness
of Scotland’s manufacturing sector, it
also provides support for collaborative
projects between companies which
will develop the capabilities of
Scottish manufacturers.
Prestwick is Scotland’s centre of
excellence for MRO, and is the base for
Ryanair, Europe’s largest low-fare airline.
It boasts the longest commercial runway
in Scotland and carries more than two
million passengers per year.
Aberdeen is home to the world’s busiest
commercial heliport and, with over 40,000
helicopter movements per year, is host
to a cluster of successful airframe, gas
turbine and avionics overhaul companies.
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www.homecomingscotland.com
SE/2785/Aug10
For further information, please contact:
Elaine McKeown
Scottish Development International
5 Atlantic Quay
150 Broomielaw
Glasgow G2 8LU
Tel: +44 141 228 2222
Fax: +44 141 228 2089
Email: elaine.mckeown@scotent.co.uk
www.sdi.co.uk/aerospace
www.scottish-enterprise.com/your-sector/aerospace