Despite its failure to win a lucrative contract to build the U.S.
Army’s light armored vehicle, the future remains bright for
VT Systems Inc., said its recently appointed chairman, retired Army
general John G. Coburn.
The company is the U.S. subsidiary of Singapore Technologies Engineering,
a $2.5 billion manufacturer of aerospace, electronic, maritime and
land systems products. Coburn ended his military career last year
as the four-star chief of the U.S. Army Materiel Command, to be
chairman and chief executive officer of the company’s American
subsidiary, VT Systems Inc.
In his new job, based in Bethesda, Md., Coburn joined a cadre of
notable former U.S. officers hired by VT Kinetics. John Tillelli,
a former commander in chief of U.S. forces in Korea, is board chairman
of VT Land Systems, a subsidiary of VT Systems. On the same board
is Leo Pigaty, who served as deputy commanding general of the AMC.
Archie Clemins, who was commander in chief of the U.S. Pacific Fleet,
and Ronald R. Fogleman, a former Air Force chief of staff, serve
as consultants.
Although the parent company is headquartered in Singapore, VT Systems
is an American company, Coburn insisted during a recent interview.
“It’s incorporated in Delaware,” he said. “The
profits from the company will be put back into the company, and
it employs Americans.”
VT Kinetics is best known in the United States for the Bionix tracked
armored personnel carrier, its unsuccessful entry in the $4 billion
competition for a light armored vehicle for the U.S. Army. Ultimately,
the Army selected a wheeled Light Armored Vehicle, Generation III,
offered by General Motors Defense, of London, Ontario, and General
Dynamics Land Systems, of Sterling Heights, Mich.
Despite the loss, the Bionix gained visibility from the competition,
which should be useful on the world defense market, Coburn said.
The Bionix was among 36 vehicles from 11 countries which took part
in platform performance demonstrations two years ago at Fort Knox,
Ky. It was one of four platforms chosen for further evaluation.
Meanwhile, it was shown at exhibitions in places such as Huntsville,
Ala.; Washington, D.C., and New York City.
Other products that VT Kinetics is marketing in the United States
are the 5.56 x 45 mm SAR 21 bullpup assault rifle and 5.56 x 45
mm Ultimax 100 machine gun. The target markets are law enforcement
and border patrol agencies, Coburn said.
“With the recent emphasis on homeland security, there is
a market for the SAR 21,” he said. “It’s a lightweight,
high volume-of-fire weapon.” The SAR 21 is the first assault
rifle of its class with a built-on laser aiming device, according
to company literature.
To make the weapon more palatable to U.S. government customers,
VT Kinetics would seek a U.S. partner to manufacture the system,
Coburn said.
The Ultimax is marketed as “the world’s lightest machine
gun,” with a weight of about 14 pounds, including a fully
loaded 100-round magazine, according to a company brochure. Unlike
heavier machine guns, it is designed for one-person operation.
Aerospace Operations
The company’s aerospace facilities—located in Mobile,
Ala., and the Dallas-Fort Worth area, in Texas—have nearly
2,000 employees converting commercial aircraft from passengers to
freight operations.
The marine division is seeking to enter a partnership with a U.S.
shipyard, Coburn noted. The company wants to pursue a number of
government projects, including the U.S. Coast Guard’s Deepwater
program and improvements in the nation’s marine transportation
system, he said.
Mexico is attractive for business operations, possibly including
joint ventures, Coburn said, such as electronics manufacturing facilities,
aircraft maintenance services and shipbuilding operations at U.S.-based
yards.
“We would entertain the notion of Mexicans floating their
ships up to U.S. shipyards, and VT Systems doing overhaul maintenance
or building small ships for them,” he said.
“The markets in the United States and South America are very
competitive,” he said. “So you really have to be good
if you’re going to be in that environment.”
Coburn’s last command, AMC, employs 65,000 military and civilian
workers in 40 states and more than a dozen countries. With a budget
of $18 billion in fiscal year 2000, AMC manages many of the Army’s
depots, arsenals, ammunition plants, laboratories, test activities
and procurement operations.
When he retired, Coburn had “numerous offers,” he said.
He chose VT Kinetics, because he relished the prospect of being
challenged. “The opportunity to grow each business area throughout
North and South America, I think, is very attractive.” The
company’s goal is to expand each business area three to four
times its current size in five years, he said.
Coburn said he also liked his new colleagues. “I just think
the chemistry is right. The timing was right.”
Success, he said, depends largely on maintaining the company’s
reputation. “We want to become the premier provider of manufacturing
and services in each of the core areas,” he said. “We
may not manufacture per se. We might provide services, or we might
partner with another U.S. company, or we might do a joint venture
with a U.S. company. We might even partner with one of the [U.S.
Army] depots.”
In Coburn’s opinion, “notwithstanding the nuances in
the market, if you can offer a low-cost and reliable product, you’ll
always have business.”