Navy deal biggest ever for Electronic Navigation

Electronic Navigation boss Neil Anderson hopes for more defence work. Picture / Richard Robinson

Marine electronics company Electronic Navigation has signed a deal worth more than $6 million to supply and set up mission systems for seven new Navy vessels.
General manager Neil Anderson said the Auckland company had fought off stiff international competition to win its biggest deal.

Electronic Navigation's contract is with Tenix, the Australian company building the vessels.

"I think Tenix is focused on getting as much New Zealand involvement as it can.

"But New Zealand companies have to step up to the mark in terms of proving they can do it and being responsive in costs, performance and quality," Anderson said.

Electronic Navigation will supply a significant part of the mission systems, encompassing navigation, communication, acoustics, vessel control and entertainment.

"It's fair to say the solution that we've provided is quite unique," Anderson said.

The traditional approach was to use specifically designed military equipment but Electronic Navigation would use commercial products.

"Supplying commercial off-the-shelf equipment ... will provide communication systems at a fraction of the cost of military equipment."

Anderson said other benefits included better product support, the need to hold fewer spares and easier training.

He said the project marked a new direction for the company, which is better-known for supplying commercial customers and the leisure industry.

"We want to use it as a stepping stone to some other defence business."

The Navy is having a 131m multi-role vessel built in the Netherlands, two 85m ocean-going vessels assembled in Australia and four 55m in-shore patrol vessels launched in New Zealand.

Launches will be spread over 18 months starting in the middle of next year.

This puts Electronic Navigation on a tight deadline, with factory acceptance tests scheduled for this June.

Managing director Mike Hodson said the company was ready for the challenge.

"The extremely tough negotiation process leaves us in no doubt as to our obligations; we are also in no doubt as to our ability to meet these obligations," he said.

Electronic Navigation, founded in 1946, is based in Auckland with a branch in Nelson.

It employs about 40 people.