Ace DenmarkAeronautical Center of ExcellenceProjektbeskrivelse

ACE DenmarkProject Description

On June 9th, 2016, Venstre, Socialdemokratiet, Dansk Folkeparti, Liberal Alliance and Radi-kale Venstre signed an agreement on the acquisition of new fighter aircraft to replace the current F-16 aircraft.

The parties agree that the Danish fighter aircraft will continue to operate from Skrydstrup, which is to be rebuilt and prepared to receive the Joint Strike Fighter combat aircraft (JSF).

The decision reinforces Haderslev Municipality's vision—together with the Armed Services, defence companies and political partners—to create the framework for a groundbreaking industrial co-operation in the form of a clustering of aircraft maintenance facilities for pri-marily military, but also civilian, aircraft.

This aircraft maintenance area is at an international level so this technological co-operation will be called the Aeronautical Centre of Excellence Denmark—ACE DENMARK.

The decision on the location of the new fighter aircraft at Skrydstrup promotes the vision for the establishment of ACE DENMARK because the contract's last paragraph reads: "The parties to the decision agree that, with the introduction of the planes, there should be a spe-cial effort to promote Danish business opportunities, and for this purpose, one facilitation mechanism should be established."

At Skrydstrup today , Fighter Wing Skrydstrup possesses a high level of proficency in both the flying of combat aircraft and their maintenance, together with that of their engines. This is the foundation for the formation of ACE DENMARK as a public/private partnership between national/international private companies and the cluster of military facilities and installati-ons resident in the Haderslev area.

ACE DENMARK may be thought of as having been established as a limited liability associa-tion—F.M.B.A.—that creates frameworks, consistency and overall identity for the companies and institutions that are members of ACE DENMARK FMBA, contributing together with pri-vate companies and the Armed Services to the operation and maintenance of aircraft in and around Skrydstrup Airport (respectively Skrydstrup and Vojens Airport).

ACE DENMARK will co-operate widely with stakeholders nationally and internationally, and serve as a unifying umbrella for the cluster of companies working in aircraft maintenance.This physical concentration of organisation, together with its proximity to the Armed Ser-vices Supply and Distribution Depot, Haderslev Barracks and Emergency Management Jut-land, helps to ensure synergy and development potential for both the military's operational structure and the use of the "GOCO" principle (Government Owned, Contractor Operated).

VisionACE DENMARK will be one of the manufacturers' recommended and preferred partners in the production, maintenance and operation of the aircraft.

MissionACE DENMARK will help to support Danish business interests by contributing to growth and job creation in Denmark in high-tech aircraft maintenance and related industries. This will create and retain jobs in Denmark that otherwise would likely have moved abroad.

In close co-operation with the Armed Services, ACE DENMARK will also complement the mi-litary operational maintenance structure in order to strengthen Danish security interests by supporting and creating conditions for a high operational availability rate of Danish military aircraft, just as ACE will create a framework for synergy between civilian and military aircraft maintenance.

ACE DENMARK acquires, retains and develops its position by:

attracting, recruiting and retaining the most talented and motivated employees to indu-stries in ACE DENMARK,

offering tasks and a work environment where people thrive both professionally and personally,

involving and engaging customers in order to target and customise services to customer requirements,

maintaining an overview of customers' needs in order to introduce optimal and customised solutions,

the advantage of the proximity between ACE DENMARK and the cluster of military facilities and installations, which today are resident in Denmark and the Haderslev area, whereby te-chnological and operational synergies are achieved,

ensuring Danish security interests through a long-term supply security and the related high level of operational availability of the aircarft concerned.

exploiting the advantages conferred by the members who are suppliers and maintainers of aircraft, both civilian and military.

StrategyThe above vision and mission should be supported by a strategy in which ACE DENMARK—th-rough ambitious and visionary activities, objectives and targets—will achieve the results that constantly support ACE DENMARK's mission and leads ACE DENMARK towards the organiza-tion's vision.

It is crucial for success to initially establish a support for a project that will create the foun-dation for building ACE DENMARK. This support must be obtained from the Armed Services, policymakers and not least the manufacturers of components for Danish military and civilian aircraft.

Armed Services roleA successful establishment of ACE DENMARK requires the support and backing of the Armed Services. There must therefore be established dedicated and focused efforts on establis-hing co-operation between the Armed Services and private industry, following the principle of GOCO. It is essential that the Armed Services participate and co-operate wholeheartedly.

It is considered that ACE DENMARK can contribute to the conversion from F-16 to F-35 that the Air Force must undertake, together with streamlining of the Air Force's resources.

For ACE DENMARK to be established in a size that makes a difference, it is assumed that the relevant defence facilities, competencies and tasks are brought into play.

FacilitiesThis implies that the potential amenities and areas of Skrydstrup Air Base that can be re-leased will be made available for ACE DENMARK activities. The Air Force is in the process of transition to a centralized one-line concept in the air base's western area. In this way, faci-lities and buildings (offices/sheds/warehouses, etc.) in the air base's eastern area could be released. Similarly, there are a number of areas and facilities in the air base's northern area that can be advantageously released for ACE DENMARK activities. In addition, there will be a reduction in the number of new combat aircraft, which may further reduce the need for faci-lities at Fighter Wing Skrydstrup.

It will be obvious that ACE DENMARK should be brought into the present establishment in Skrydstrup, due to the implementation of new fighter aircraft and the Air Station's new sta-tus as the NATO Core Airbase, to prepare a range of adjustments.

The common physical anchoring between ACE DENMARK and the military operational en-vironment is essential, as it is from the operating environment that input will come for new requirements and feedback on the durability and usability of the products produced in ACE DENMARK. A close co-operation and synergies with the operational customer will thus help to optimize ACE DENMARK's products and create opportunities for members' expertise that can be used in synergy with civil air.

To what extent Vojens Airport land may be included in ACE DENMARK will be analyzed in order to increase collaboration with the civilian part to provide easy access via the civilian airport in Vojens and access to one of the longest runways in Denmark.

Facilities in the rest of the defense cluster—including the Armed Services Supply Depot and Distribution, Haderslev Barracks and Emergency Management Jutland—should also be inclu-ded in GOCO consideration in order that ACE DENMARK can use any spare capacity.

CompetenciesA key prerequisite for getting the necessary civilian approvals (e.g. EASA PART 145) to main-tain aircraft components is that they have certified and experienced employees in aeronau-tics. Here, too, the Air Force can contribute their trained and experienced civilian and military aircraft mechanics.

In addition, the Armed Services have a certified training capacity that could contribute to basic and advanced training for civil ACE DENMARK employees in aeronautics. This can be advantageously carried out in co-operation with civilian educational institutions at all levels, and such co-operation could possibly attract new areas of education.

AssignmentsAerospace and aircraft maintenance is a relatively limited and demanding market, with rela-tively few major providers. In order to assert themselves at the highest level, it is crucial that small countries with few military aircraft concentrate their efforts.

This implies that the Armed Services and the State show the necessary willingness and com-mitment to create the necessary national business requirements for ACE DENMARK through tasks that can fall into the framework of ACE DENMARK.

Today, these tasks are typically located in the Armed Services major work sites, the structure of the Armed Services known as Maintenance Level 2 (VN2)—this level is also known as D-level (Depot Level).

An example of this is the current VN2 maintenance of aircraft engines for the F-16 and heli-copters. Maintenance of aircraft engines is one of the most challenging and costly aspects of aircraft maintenance. The Armed Services VN2 aircraft engine maintenance conducted today at Skrydstrup and in Korsor is today globally recognized in competence and experience.

Aircraft engine maintenance is not included in the operational maintenance level (the structure of the Armed Services known as VN1) and will immediately be transferred to ACE DENMARK.

The skills used for Armed Services engine maintenance will be developed to include other countries' engines of the same type and will also be extended to the maintenance of other aircraft engine types.

Another example is support for the maintenance and operation of the F-16 during the air-craft’s remaining life up to 2024.For a while, the Armed Services will be in a transitional phase where the F-16 will be phased out and the new fighter introduced. It will therefore be neces-sary to operate and maintain two types of fighter aircraft at Skrydstrup. This double task will challenge the existing maintenance structure, and it will be obvious that ACE DENMARK will be involved in solving problems—for example, inspection and any necessary minor structural programs on the F-16.

ACE DENMARK helps to implement the Defence Ministry's "Open For Business" strategy to support the promotion of Danish business, from which it is stated that the Armed Services should maintain and develop co-operation with Industry and its associations, including being aware of funding opportunities for Industry.

Political supportBesides the Armed Services, support from the political level will be essential.

Haderslev Municipality has already established a dialogue at state and regional levels, and has achieved good results and great support for the plans, so Haderslev seeks support among defense rapporteurs, the Minister and the region of Southern Denmark.

Based on political support, Haderslev Municipality has sought dialogue with the IMF and the Air Staff, requesting them to support ACE and part of work on the implementation of ACE DENMARK.

Lockheed Martin Aerospace (LMA) will be aimed for as a starting point, which constitutes the "backdrop" for all activity related to a number of defence aircraft, including the F-35/JSF.

Co-operation with LMA is a very important prerequisite for the ability to act within the main-tenance scheme of aircraft produced by LMA.

The existing longstanding collaboration with LMA around the F-16 and C-130J will be conti-nued and developed. The Armed Services have recently acquired the Seahawk helicopter and now the JSF—both LMA aircraft. There is therefore a collaboration with LMA with an expe-cted time horizon of at least 40 years. The industrial co-operation agreed directly between the Armed Services and LMA should be noted.

Haderslev Municipality will urge that the ideas behind ACE DENMARK are included in conne-ction with JSF conversion phase, in which agreements regarding the operation and mainten-ance of the JSF are also to be discussed.

It is considered that Denmark already holds a favourable position as a result of its participa-tion and co-operation in the development and production of the JSF.

The existing contracts between LMA and Danish suppliers are to be nurtured and developed, and they are considered possible partners for LMA in connection with type selection studies to be pursued, particularly in relation to co-operation in operation and maintenance.

The manufacturer of the engine for the new fighter must also contacted in order to achieve a possible contract between Pratt & Whitney United Technologies (USA) and a Danish supplier, possibly the Danish Armed Services. Fighter Wing Skrydstrup’s engine workshop possesses the necessary expertise and has very good results in the maintenance of the F-16’s Pratt and Whitney engine.

The Armed Services already use a number of civilian firms for the maintenance of military aircraft but it is also seen that this is very much happening abroad. Within the framework of ACE DENMARK, it will be possible that some of these companies can be assigned, which can create Danish jobs, paid for by the Danish Armed Services.

Danish industrial companies Danish Metal, Danish Industry, CenSec (Center for Defence, Spa-ce & Security) and FAD (Defence and Aerospace Industry in Denmark), are considered to be able to support the conceptual framework.

Action PlanHaderslev Municipality has initiated a dialogue with the Minister of Defence, Industry, Armed Services rapporteurs and Region South Denmark.

Based on this, Haderslev has introduced ACE DENMARK for the Armed Services/Air Force, represented by:

Defence in hardware and Purchasing Governing FMI, through General Lieutenant Niels Bundsgaard

the Air Staff, through Major General M.A.L.T. Nielsen

New fighter-office, through Major General Henrik Lund Stein

Danish Industry and Danish Metal.

Lockheed Martin Aerospace (LMA), Pratt & Whitney United Technologies (USA) and others.

Work is underway to develop these contacts and provide a basis for agreements in the near future.The aim is to establish a common understanding of the program's benefits, which, among other things, is an important factor with respect to staying focussed and tying the program together.

The identified benefits will govern the design, organization, etc. of ACE DENMARK.

Co-operation InterfacesHaderslev Municipality has also initiated discussions with other relevant parties, including South Denmark University, which can aid in, for example, clustering.

Haderslev Municipality has from January 1, 2017, joined the Centre for Defence, Space and Security (CenSec) which is a network of industrial enterprises in relevant areas, including both civil and military aerospace.

Haderslev Municipality has also contacted several industrial companies who all have an in-terest in participating in a cluster formation, both large ”Tier 1” approved enterprises and small/medium-sized businesses, which are suppliers to aircraft manufacturers and main-tenance.

In the first half of 2017, work will start on forming the cluster by establishing an FMBA that, in the initial phase, will be housed in Vojens Airport, which serves as the civilian part of the cluster. But as all agreements are finalized, the ambition will be to move ACE DENMARK into Air Station area.

H. P. GeilMayour+45 21 69 64 71hapg@haderslev.dk

Willy FeddersenCity Manager+45 21 28 46 70wimf@haderslev.dk

Contacts: