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Eurocopter’s KHP/KUH Helicopter Deal

16-Oct-2007 14:04 EDT

Related Stories: Asia - Other, EADS, Europe - France, Helicopters & Rotary, New Systems Tech

AIR_KHP_Drawing.jpg
KHP Concept
(click to view full)

In a December 2005 article, DID covered Korea’s planned acquisition of approximately 245 utility transport helicopters, which would be developed and produced as a semi-indigenous program in conjunction with contract winner EADS Eurocopter. The KHP will be in the 8-tonne class, and will be designed to carry 11 troops. South Korea currently owns around 700 helicopters, but more than half are considered outdated, and they need to be replaced. Industrial offsets were also important, as the program is designed to boost indigenous industrial manufacturing capability for rotary-wing aircraft.

The Korean government has given its final approval of the contract, and the project is underway. Note that while company releases place the program’s value at $6-8 billion, this is misleading. As DID noted in its December coverage, the initial contract is for Won 1.3 trillion ($1.3 billion), and is for research and development only. Contracts for the Won 4+ trillion ($4+ billion) production project will be struck separately around 2011, once it is clear how much technology transfer has occurred.

So far, Eurocopter is preparing to unveil the design at the Seoul 2007 Air Show, and EADS has just won a contract for the helicopters’ self-protection systems…

The KHP (now KUH) Program

South Korea Flag

In February 2005 the Ministry of National Defense announced that would launch a multi-billion-dollar procurement project to build utility helicopters in December 2005. This was a cut-down project from the original effort, which aimed at a core platform that could have utility or attack helicopter sections built onto it to create a pair of aircraft with significant commonality. Note that the US Marine Corps new Bell UH-1Y Huey and AH-1Z SuperCobra are an example of a high-commonality utility/attack approach.

A total of five trillion won ($4.5 billion) was budgeted for this Korean Helicopter Program (KHP) including research and development expenditures. The project is aimed at producing hundreds of helicopters to replace UH-1H Hueys currently in service. South Korea now owns some 700 helicopters, but more than half are considered outdated. Industrial offsets are also important, as the program is designed to boost indigenous industrial manufacturing capability for rotary-wing aircraft.

On Dec 12, 2005, DID relayed the Chosun Ibo’s reports that Korean Aeronautics Industries (KAI) had wrapped up KHP negotiations with the French-German manufacturer Eurocopter, as opposed to Bell Helicopter of the USA or the Anglo-Italian firm AugustaWestland. “The Defense Ministry will finalize its decision after consulting a committee on the KAI recommendations and investigating the potential for technology transfer.”

That turned out to be so. On December 13, 2005, Eurocopter announced that it had won the 245 helicopter contract:

“The 6-year KHP development phase will run from 2006 to 2011; In the following 10-year production phase, 245 helicopters are to be manufactured.

KAI is the prime contractor for the Korean Helicopter Program. As the primary partner of KAI, Eurocopter will provide technical assistance and supply the transmission and autopilot subassemblies for the helicopter. Eurocopter has a stake of 30% in the development phase and 20% in the production phase.

Chosun Ibo clarified. The deal with Eurocopter is worth Won 1.3 trillion ($1.3 billion), and is for research and development only. Contracts for the Won 4.1 trillion ($4.1 billion) production project will be struck separately once it is clear how much technology transfer has occurred by around 2011.

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EC155
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Some sources DID has found indicated that their KHP project bid may be based on the Dauphin-derived EC155/ AS 565 Panther, and the diagram provided in the Chosun Ibo report appears to bear that out. According to Eurocopter:

The KHP helicopter is in the 8 metric ton class and is capable of carrying 2 pilots and 11 troops with an endurance of well over two hours. The helicopter is equipped with the very latest technological advances.

Eurocopter and KAI have agreed to set up a 50/50 subsidiary to market the export version of the KHP helicopter. Forecasts needs for this utility helicopter on the world market are set at 250 machines over 20 years.

Eurocopter later revised this 300 machines, and as of October 2007 the project began to take the name “Korean Utility Helicopter.” Given that Korea is a 245 helicopter order, the clear implication is that this will be a variant of an existing product, with minor applications at best beyond Korea.

Contracts & Key Events:

AIR KUH Concept
KUH concept
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Oct 18/07: Korea Aerospace Industries (KAI) and Eurocopter sign of a Memorandum of Understanding (MOU) to create a Joint Venture (JV) Company for the worldwide sales and marketing of the Korean Utility Helicopter (KUH). It will be in operation by 2010. With a shareholding structure of 51% for KAI and 49% ownership for Eurocopter. Eurocopter role is to provide technical assistance for the development of the helicopter as well as certain sub-assemblies, the transmission, and the autopilot. About 40 Eurocopter engineers are housed at Sacheon (Korea) with KAI.

The Eurorcopter release sets expected Korean orders at about 250 KUH helicopters, while estimating KUH production at “an order of 300 helicopters.”

Oct 15/07: EADS Defence & Security announces that it will equip the KHP helicopter with its MILDS AN/AAR-60 self-protection system. Over 5,000 AN/AAR-60 units have been produced and installed aboard a wide variety of rotary wing and wide body aircraft, often as part of a multi-spectral suite of sensors; a version for fighter aircraft is under development.

This advanced, passive imaging sensor detects and tracks the ultraviolet emissions of approaching missiles. All approaches have advantages and disadvantages. As Aramada Magazine’s “Fighting an Invisible Threat” explains, ultraviolet seekers tend to be more effective at lower and slower targets, and are less vulnerable to false acquisitions such as decoys. The sensors are also smaller, lighter and require less cooling. On the flip side, they are more vulnerable to atmospheric conditions, and tend to have poorer sensitivity and resolution than other options such as infared.

EADS DS will provide the equipment for the development phase, but from 2008 onward the sensors will be integrated by the Korean company LIGNex1 into the KHP self-protection system.

Oct 15/07: KOIS reports that a real-size model of the KHP/KUH transport helicopter will be on display at the Seoul 2007 air show that opens in Seongnam Oct 16-21/07. This will be the first time the helicopter’s form and interior design will be unveiled publicly. The development program is now code-named “Korean Utility Helicopter (KUH),” and aims to produce a prototype in 2009 and begin mass-production in 2012. KOIS adds:

“Under the 1.3-trillion-won ($1.38 billion) program, Korea aims to produce 245 advanced transport helicopters. The DAPA also expects exports of the envisioned helicopters, each priced at around 15 billion won. The 14.7-meter helicopter can carry two gunners and nine other troops, along with two pilots.”

March 1/07: GKN Aerospace announces that they have been selected by Hanwha Corporation to supply fuel bladders for the Korean Helicopter Programme (KHP). This contract, awarded by Hanwha Corporation, has a value approaching $3.5 million and is the culmination of a lengthy collaboration. Phase 1 of the contract involves completing the development activity which will be finalized this year, followed by testing and initial production during 2008. Phase 2 commences in 2009, with preparation and first assembly activities at Hanwha’s facilities in Korea.

The fuel bladders will be manufactured using a GKN developed, MIL spec material, which is far more flexible than current materials. This flexibility eases and speeds installation and greatly reduces the potential for damage to the bladder during the installation process. The material is also lighter than current products and, critically, offers a faster self-sealing capability in the event of damage during helicopter operations. GKN release.

Oct 31/06: KAI release:

“For the Korean Helicopter Program (KHP) propelled by Republic of Korea Government, notice of solicitation for korean/foreign industries participation is hereby issued in the area of Mission Equipment Package(MEP) whose development efforts will be led by Agency for Defense Development and procurement activities will be led by Korea Aerospace Ind., Ltd. (KAI) or Nex1 Future Co., Ltd.”

Full solicitation [PDF].

Additional Readings and Sources

  • EADS (April 12/06) – South Korea’s DAPA (Defense Acquisition Program Administration) formalizes the decision to acquire 245 utility helicopters to be developed by Korea Aerospace Industries Limited in partnership with Eurocopter, and produced as from 2011 onwards.