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Volume 2024
Main headlines from this issue
Supreme Court of Canada issues decision on 2008 offset dispute
The Supreme Court of Canada has issued a decision relating to letters of credit associated with an offset dispute case between Canada’s Bombardier and the Hellenic Ministry of National Defence. The offset dispute is linked to Greece’s purchase of ten firefighting amphibious aircraft from Bombardier in November 1998.
Poland’s WISŁA Phase II progresses with local production contract
RTX’s local subsidiary, Raytheon Polska, signed an agreement with Huta Stalowa Wola S.A. (HSW) on 12 August to produce 48 M903 launchers for six Patriot air defence batteries in Poland. HSW will act as a subcontractor to Raytheon for the delivery of the systems to the Polish Armed Forces.
Kongsberg to establish missile factory in Australia
Norway’s Kongsberg will build a facility in Australia to manufacture and maintain its Naval Strike Missile (NSM) and Joint Strike Missile (JSM), through a transfer of technology. Backed by an AUD850m (USD576m) investment from the Australian government, the facility will be the first outside Norway to produce these weapons.
Turkey and Spain discuss jet swap
Turkey and Spain have reached an advanced stage of negotiations over a military aircraft swap. If finalised, Turkey will acquire Airbus A400M military jets in exchange for its domestically produced Hürjet training aircraft. The potential swap deal is valued at around EUR720m (USD793m).
TATA to establish vehicle manufacturing plant in Morocco
Indian defence manufacturer Tata Advanced Systems Limited (TASL) has completed all administrative procedures and entered the implementation phase to establish a military vehicle manufacturing plant in Morocco. To this end, Tata has established a new entity in Morocco called Tata Advanced Systems Maroc Construction.
Kazakhstan localises oil and gas production
Kazakhstan is planning to localise three oil and gas production facilities this year in collaboration with global manufacturers. The Central Asian country is focusing on increasing local content in oil and gas equipment to support and promote domestic manufacturing and local suppliers.
Main headlines from this issue
India amends Defence Acquisition Procedure to provide opportunities for startups
India’s Defence Acquisition Council approved amendments to the Defence Acquisition Procedure (DAP) 2020, which will be reviewed after one year. The amendments include changes in costs, payments, and procurement procedures to include Micro, Small and Medium Enterprises and startups in bidding processes to promote technology procurement from them.
India to buy additional Scorpénes with 60 percent indigenous content
The Indian Navy will acquire three additional Scorpène-class submarines from France’s Naval Group. The French prime will partner with Bharat Electronics Limited to integrate an indigenous combat management system into the submarines. The new submarines will be built locally by Mazagon Dockyards Limited with 60 percent Indian content.
Local industry to build radar components for Spanish frigates
Lockheed Martin awarded purchase orders to Spanish companies to build components for its SPY-7 radar on 24 July. The US prime is collaborating with Indra Sistemas, Escribano Mechanical and Engineering, and the Institute of Marine Sciences on the radars that will be fitted on Spain’s F-110 frigates, which are being built by Navantia.
Boeing fulfils ITB commitment in Canada through indigenous firm
Boeing has awarded Canada’s Indigenous-owned COTA Aviation, an investment of USD9.4m for the construction of a manufacturing training centre. This forms part of Boeing’s wider USD44.5m investment in British Columbia, as part of the US prime’s Industrial and Technological Benefit commitment to deliver the P8 Poseidon Aircraft to the Royal Canadian Air Force.
Malaysian firm to upgrade Hanwha’s K200 vehicles
Hanwha Aerospace has signed a teaming agreement with Malaysia’s Cendana Auto to upgrade their ageing K200 tracked IFVs. The Malaysian Ministry of Defence said that the contract, announced on 2 August, would include a technology transfer to support Malaysia’s MRO capabilities in armoured vehicles.
Future Leopard tanks to involve Czech industry
The Czech Republic will receive an additional 14 Leopard 2A4 tanks and one Büffel 3 armoured vehicle from Germany. The Czech MoD plans to sign an industrial cooperation agreement with KNDS later this year to ensure local industry involvement in the development, production, and lifecycle management of these tanks.
Main headlines from this issue
UK launches a Strategic Defence Review
Prime Minister Keir Starmer launched the UK’s Strategic Defence Review (SDR) 2024–2025 on 16 July. Key issues covered in the review are to include an assessment of the UK’s domestic defence technological and industrial base. The review, which will be due in the first half of 2025, will also identify and recommend changes to foster new investment and greater economic growth for the UK.
Offsets to determine winner of Thai fighter jet contract
The Royal Thai Air Force has recommended to the Thai Government that Saab’s Gripen E be selected over Lockheed Martin’s F-16 jet to replace its ageing fleet of F-16s at the Korat RTAF Base. However, this does not mean that Saab has won the contract. Prime Minister Srettha Thavisin said on 16 July that he wanted to see the offset offers from both Saab and Lockheed before finalising the winner.
Indian submarine tender makes headway after several delays
An Indian contract to build six submarines for its navy has boiled down to a competition between two joint ventures. German shipbuilder Thyssenkrupp Marine Systems (TKMS), in partnership with defence shipyard Mazagon Dock Limited (MDL), is competing with Spanish shipyard Navantia, which is bidding in partnership with Indian engineering giant Larsen and Toubro (L&T). The first submarine must have a minimum of 45 percent indigenisation, with indigenous content going up to 60 percent by the sixth submarine.
Korea offers aircraft production in Peru
Korea Aerospace Industries (KAI) signed an MoU with Peruvian firm SEMAN for the local production of 250 components and parts for the FA-50 light combat aircraft (LCA). Under the agreement, SEMAN will conduct work on the joint production of the aircraft’s machinery and sheet metal.
Australian SME to receive tech transfer on British vehicles
Alkath Group, an Australian engineering SME, has entered a partnership with UK-based MSubs Ltd to develop maritime autonomous system capabilities. This cooperation, announced on 23 July, will focus on R&D activities in uncrewed surface vehicles (USVs) with a transfer of technology to the SME.
Defence partnerships bolster Czech - Ukrainian ties
As part of Czech–Ukrainian intergovernmental consultations, two subsidiaries of firearms company Colt CZ Group SE signed ammunition and firearms production agreements with the Ukrainian Defense Industry (UDI) on 16 July. The Czech Republic and Ukraine also signed a ten-year security cooperation agreement on 18 July.
Main headlines from this issue
US Supreme Court dismisses Blenheim appeal
On 17 June, the US Supreme Court dismissed an appeal case by Blenheim Capital Holdings, who had claimed that Lockheed Martin, Airbus Defence and Space SAS, South Korea’s DAPA, and the South Korean government had conspired to cut Blenheim out of an F-35 fighter jet offset deal. The dismissal brings an end to the lawsuit filed in December 2020, which alleged that DAPA and the two defence manufacturers had conspired to exclude Blenheim from the offset deal that it had designed and developed.
Rheinmetall-Leonardo JV bid for land vehicle development in Italy
Rheinmetall and Leonardo have signed an MoU to establish a 50/50 joint venture to bid for the Italian Army’s new armoured vehicle contracts. Announced on 3 July, the joint venture will be headquartered in Italy with final assembly lines, homologation testing, delivery activities, and logistic support based in-country, leading to an Italian workshare of 60 percent.
MBDA and Kongsberg withdraw from Swiss tender with offset requirement
MBDA and Kongsberg have withdrawn from a USD738m Swiss tender for the procurement of a medium-range ground-based air defence. The Swiss Federal Office for Defence Procurement, armasuisse, confirmed in a statement on 5 July that this leaves Diehl's IRIS-T system as the only potential bidder. MBDA and Kongsberg informed armasuisse that they would not be submitting offers for the tender due to time constraints.
JV to locally maintain S-400 systems amid delivery delays
Russia and India are finalising an agreement to establish a joint venture for the maintenance and repair of S-400 air defence systems in India. Russian state-owned enterprise Almaz Antey is in the final stage of negotiations with an undisclosed Indian company for the establishment of the facility. Almaz Antey will provide the technology needed for the task to the Indian partner, as well as offering technical support to establish the necessary infrastructure for the venture.
Italian vehicles to be produced in Brazil with local content
Brazil signed a contract with Italy’s Iveco Defence Vehicles Latin America (IDV LATAM) to acquire 420 Light Multirole Vehicles (LMVs). As part of the deal, IDV will manufacture LMV-BR2 Guaicurus vehicles at its Brazilian facility in Sete Lagoas. Several components of the LMV will be manufactured in Brazil, and tools for maintaining the vehicle platform will also be procured locally.
Thales to establish military communications JV in Egypt
Benha Electronics signed a cooperation agreement with France’s Thales Group on 15 July to establish a joint venture in Egypt. Thales and Benha Electronics S.A.E. will cooperate in the fields of training and R&D towards the production of communication devices and signalling systems.
Main headlines from this issue
French SMEs highlight offset challenges, focus on finding “right” local partners
At Eurosatory, French small and medium-sized businesses Aresia, Etienne Lacroix, and Ouvry highlighted the opportunities and challenges associated with offsets in defence procurements, noting technology transfer and intellectual property (IP) as major hurdles and stressing the importance of finding the “right” long-term local partners for successful offset fulfilment.
Thales bolsters partnerships with the UAE and Ukraine
France’s Thales Group signed four agreements at Eurosatory with Emirati and Ukrainian companies, namely the UAE’s KATIM and Ukraine’s Joint-Stock Company Ukrainian Defence Industry and FRDM.
UAV production and maintenance site launched in France
Austria’s Schiebel Group announced on 20 June that it has established a new subsidiary named Schiebel Aéronaval SAS and opened a new facility in Toulon, France, that will focus on the local production and maintenance of Camcopter S-100 unmanned aerial vehicles for the French Navy.
India, US discuss Stryker and Javelin co-production at iCET dialogue
India and the US are discussing the joint production of Stryker armoured infantry combat vehicles (ICVs) and Javelin anti-tank guided missiles (ATGMs), US Deputy Secretary of State Kurt Campbell announced during an online briefing. The discussion formed part of the India-US Initiative on Critical and Emerging Technology (iCET) dialogue held in New Delhi on 17 June.
Joint venture in Australia to support AUKUS submarine development
To accelerate the development of Australia’s nuclear submarine capabilities under the AUKUS partnership, US shipbuilding company Huntington Ingalls Industries (HII) and British prime Babcock are forming H&B Defence, a joint venture in Australia. Headquartered in Canberra, the joint venture will collaborate with government, industry, and academic stakeholders in Australia to develop a skilled local workforce.
SIG SAUER bolsters UK operations with new small arms facility
Swiss-German firearms manufacturer SIG SAUER is hoping to bolster its operations in the UK ahead of a British requirement for new small arms. Dr Duncan Stewart, director of business and programme development, said that the company is looking to move beyond earlier small-scale operations in the UK market and is expanding its investment through a local maintenance and support facility, SIG UK.
Main headlines from this issue
ITAR “flaws” and AUKUS Pillar II barriers to persist despite proposed amendments
A proposed rule to amend the International Traffic in Arms Regulations (ITAR) was published by the US Department of State’s Directorate of Defense Trade Controls (DDTC) last month to advance the goals of the trilateral AUKUS partnership between the US, the UK, and Australia. The new rule proposes to amend ITAR and introduce an exemption that will reduce export authorisation requirements for defence articles, services, and brokering activities for authorised users in the UK and Australia.
EDGE & Adani sign cooperation agreement amidst growing UAE-India ties
EDGE Group, UAE’s state-owned defence conglomerate, signed a cooperation agreement with India’s Adani Defence and Aerospace on 11 June to establish a “global platform” leveraging the two defence giants’ defence and aerospace capabilities. The two parties will explore the establishment of R&D facilities in both India and the UAE as a part of the deal.
Norway to assemble, repair and export German tanks, while tank deal in Italy risks collapse
While Norway is set to assemble 37 Leopard 2 tanks locally for the first time, an Italian deal to procure the tanks is at risk of collapsing because of an impasse over technology transfer between industry partners.
KNDS sets up subsidiary in Ukraine, signs agreements with local firms
On 7 June, the Franco-German prime KNDS announced the setting-up of a new subsidiary, KNDS Ukraine, which will produce military equipment and ammunition in Ukraine. KNDS Ukraine will work with local firms to set up equipment maintenance, manufacture spare parts, and produce 155mm artillery shells domestically. The new unit is expected to be established by the end of the month.
Thales and PT LEN to launch a joint venture in Indonesia
France’s Thales has signed an agreement with Indonesia’s state-owned defence electronics company PT LEN Industri (Persero) to launch a joint venture. As part of the deal, signed on 30 May, the two firms will establish a centre of excellence and work together on air surveillance radars and command & control (C2) systems. They will also undertake the co-development of a national air operations centre.
Hanwha Ocean builds local partnerships for Canadian submarine project bid
Korean shipbuilder Hanwha Ocean has signed an MoU with Canadian provider of propulsion system integration services, Gastops, to explore domestic and international collaborative opportunities within the Canadian Patrol Submarine Project (CPSP). The prime also signed a Teaming Agreement with Canadian firm CAE and an MoU with Curtiss-Wright Indal Technologies.
Main headlines from this issue
Peru to consider offsets as evaluation factor in contracts, new decree to regulate projects
Peru is seeking to boost its defence industry by adopting a shift from offsets to industrial cooperation and has introduced two changes to its industrial compensation regulations in this process. Firstly, offset proposals will be used as evaluation factors in foreign contracting processes. Secondly, a decree will be issued to establish guidelines for direct and indirect offsets, as well as industrial cooperation.
Colombia explains updated offset policy, new decree to be introduced
A new decree will be introduced to improve offset implementation in Colombia, identify productivity gaps, and foster sustainable growth through strategic projects within the framework of Colombia’s re-industrialisation policy. On 27 May, the MoD issued Resolution No. 2029, which establishes the Defence Sector Committee for the analysis and approval of industrial and social offset projects submitted by foreign suppliers.
Romanian industries form defence partnerships at BSDA exhibition
Romanian defence companies signed collaboration agreements with foreign suppliers from Europe and South Korea on the sidelines of the Black Sea Defense and Aerospace (BSDA) Exhibition, held in Bucharest on 22–24 May. Milrem Robotics, MBDA, and Hanwha Aerospace are collaborating with local entities Digital Bit, IAR Brasov, and the Elie Carafoli National Institute for Aerospace Research, respectively.
UAE orders patrol vessels from EDGE-Fincantieri joint venture
The UAE Coast Guard has signed a EUR400m (USD435m) deal to acquire ten offshore patrol vessels (OPV) from Maestral, a joint venture established between Emirati conglomerate EDGE Group, and Italian shipbuilder Fincantieri. This announcement of the agreement and the formal launch of Maestral took place on 20 May.
India to locally assemble controversial missile systems
India is set to receive another batch of the Igla-S air defence systems from Russia’s Rosoboronexport. According to media reports, Adani Defence Systems and Technologies Limited (ADSTL) will assemble these systems in India under a transfer of technology from the Russian prime. ADSTL will assemble the sights, launchers, and batteries in India, but some local media reports suggest that these parts may even be locally manufactured in India.
South Australian firms to participate in the AUKUS supply chain
The state government of South Australia announced a programme with American shipbuilder Huntington Ingalls Industries (HII) to enable the participation of local suppliers in the AUKUS nuclear-powered armed submarine supply chain. The agreement connects South Australian suppliers to HII’s Supplier Capability Uplift Program.
Main headlines from this issue
Brazil will continue to offer flexibility in offset practice to its Armed Forces
While the Brazilian MoD made no policy update announcement, representatives from the MoD and the armed forces maintained a positive outlook towards offsets. Brazil’s army, navy, and air force operate as separate entities, each with their own offset authorities, requirements and implementation mechanisms. While they all follow one overarching offset policy, this setup allows flexibility for the forces to determine their specific priority areas and project requirements.
Korea moves towards parts manufacturing as foreign suppliers are hesitant to transfer tech
South Korea is moving on from requesting technology transfer and will instead rely on industrial cooperation in the form of parts manufacturing. Kim Seok, director of South Korea’s DAPA, announced during the GICA conference that this shift to industrial cooperation will see Korea’s focus on parts manufacturing and export by local companies as offset benefits in foreign defence procurements.
Hyundai Rotem partners with Peruvian industry on armed vehicles
Peru’s FAME S.A.C formalised a contract with a consortium between South Korean conglomerate Hyundai Rotem and STX Corporation on 20 May. Collaboration under the USD60m contract will commence under a joint venture partnership model. The agreement will include the transfer of knowledge and technologies, and an assembly plant will be set up at FAME’s Lurigancho-Chosica facility.
Corvus opens office in South Korea to facilitate ToT for Redbacks
Australia’s Corvus Technology Solutions, announced this month the inauguration of its office in Seoul on 5 March. The office will oversee technology transfer from South Korea for the local production of In-Arm Suspension Units (ISUs) as part of Australia’s procurement of AS-21 Redback Infantry Fighting Vehicles (IFVs). The new office is expected to create around 40 technical jobs.
Completion of five offset projects approved under Poland’s WISŁA Phase I
The Polish MoD officially approved the completion of five projects by Lockheed Martin under Phase I of the WISŁA programme on 6 May. The American prime partnered with local industry partners on the transfer of technology and component manufacturing related to the PAC-3 Missile Segment Enhancement. The five approved offset projects were completed by WZE and WZL-2.
Hensoldt UK to supply surveillance & navigation systems for FSS vessels
Hensoldt UK has been selected by Navantia UK to provide radars, and surveillance and navigation systems to the UK Royal Fleet Auxiliary’s (RFA’s) three new Fleet Solid Support (FSS) ships. Through this contract announced on 2 May, Hensoldt UK will create at least 50 highly skilled jobs and sustain an additional 150 within the company and the UK supply chain.
Main headlines from this issue
Australia releases first-ever National Defence Strategy and updated Investment Programme
The Australian government released its first-ever National Defence Strategy and its updated Integrated Investment Programme on 17 April. The documents set out a revised approach for the Australian Defence Force following the release of the 2023 Defence Strategic Review.
Hanwha continues offset heavy K9 collaboration with Polish industry
Hanwha Aerospace is making progress in its cooperation with the Polish defence industry through a comprehensive and offset-heavy programme relating to the K9 howitzers. Poland has commissioned a modified variant of the self-propelled howitzers from Hanwha, which will now be fitted with subsystems supplied by local Polish companies.
Rheinmetall to establish artillery factory in Lithuania amidst investment reforms
Rheinmetall will establish a new factory in Lithuania for the production of 155mm artillery shells. The ammunition produced in Lithuania will also be exported. Once completed, the facility will be the only 155mm ammunition plant in the Baltics.
Austrian company to collaborate with Dutch OEM on LTVs
The Austrian MoD signed a contract with Dutch OEM and manufacturer of light tactical vehicles, Defenture BV, for the delivery of Ground Force vehicles for its Special Operations Forces. Under the contract signed on 8 April, Defenture will collaborate with local vehicle construction company Achleitner Gruppe to deliver and provide service support for the LTVs.
Spanish company to locally produce PAC-3 missile components
Lockheed Martin has deepened its collaboration with Spanish multinational engineering company, Grupo Oesía. The two companies signed an MoU on 16 April for the future production of Lockheed’s PATRIOT Advanced Capability-3 (PAC-3) missile segment enhancement components in Spain. Lockheed will transfer know-how and assistance to Tecnobit - Grupo Oesía to facilitate the local production of the missile parts.
Leonardo to localise MRO as Nigeria seeks tech transfer from foreign suppliers
Italy’s Leonardo is expanding its operations in Africa, with plans to use Nigeria as a base to carry out M-346 jet maintenance services for its regional clients. Leonardo will provide maintenance support for a minimum of 25 years for Nigeria’s fleet of M-346s. Leonardo will also use its physical presence in Nigeria as a maintenance hub to carry out services for other customers in Africa.
Main headlines from this issue
Canadian Defence Policy Update released, ITB to apply to newly funded capabilities
The Canadian government released its Defence Policy Update (DPU), Our North, Strong and Free, on 8 April. The DPU builds on the 2017 document, Strong, Secure, Engaged (SSE), which outlined plans for projects and new investments amounting to CAD164bn (USD118bn) over 20 years. The Canadian government intends to update the DPU every four years.
Australian companies seek US collaboration under AUKUS alliance
Australian defence companies such as NIOA Group, EOS Defence Systems and 3ME Technology are aiming to expand their presence in the US market, underpinned by the increased opportunities for collaboration driven by the trilateral AUKUS defence partnership between the US, the UK, and Australia. Challenges over technology transfer, however, remain a concern for industry partners.
Finnish and Czech companies join F-35 supply chain
Two future F-35 Lightning II customers are being added to Lockheed Martin’s supply chain for the fifth-generation fighter aircraft as its deployment across Europe accelerates. Local industry partners in Finland and the Czech Republic have successfully obtained workshare as part of their respective F-35 procurements.
Indonesia to locally produce submarines with tech transfer
Indonesia’s state-owned shipbuilder PT PAL and France’s Naval Group will collaborate to boost the Indonesian Navy’s submarine capabilities. Indonesia awarded the contract to the Naval Group–PT Pal consortium on 28 March for the delivery and local production of two Scorpène-class submarines.
Turkish arms company to establish joint venture in Congo
Turkish arms company Ateşçi is investing in a Congolese joint venture with state-owned mining explosives company, Africaine d’explosifs (Afridex) for the local production of munitions of various calibres. A new ammunition production line will be installed at the Afridex site in Likasi, Democratic Republic of Congo, where production of Ateşçi's products is expected to begin in July.
Embraer collaborates with Chile on local production and MRO
Brazilian aerospace company Embraer announced the signing of two industrial and services cooperation agreements with Empresa Nacional de Aeronáutica de Chile (ENAER) on 11 April. The agreements have been signed for the A-29 Super Tucano and the C-390 Millennium aircraft. They cover the local manufacture of aircraft parts, as well as the establishment of a new service centre in Chile.
Main headlines from this issue
New Australian Defence Strategy while detailed, may be ineffective
The Australian government released its first-ever Defence Industry Development Strategy (DIDS) on 29 February. The strategy, essentially an internal review of the Australian Industrial Capability (AIC) policy, aims to provide recommendations and a detailed implementation plan to help grow Australia’s domestic defence industrial base. However, it has attracted criticism for failing to narrow down Australia’s defence priorities or define specific levels of local content in foreign procurements.
Local facilities set up in India despite tech transfer concerns
India has recently bolstered defence partnerships with international companies, Israel Aerospace Industries (IAI) and Brazil’s Taurus Armas S.A., both of which have launched entities and facilities in the country. These developments however, have materialised after facing challenges in securing technology transfers from foreign suppliers.
Romania demands offsets, attracts sole bid from Otokar
As Romania struggles to invite bids for its light armoured tactical vehicles (ATBTU) procurement, Rheinmetall is building a gunpowder factory in the country in collaboration with the European Commission.
Dutch submarine contract awarded to Naval Group attracts criticism
The Dutch government has provisionally selected French shipbuilder Naval Group to deliver its Barracuda submarines as part of the Netherlands’ Walrus-class replacement programme. The company will collaborate with Dutch shipbuilder Royal IHC to deliver a “renewed submarine capacity”.
Swiss industry reaps indirect offset benefits from F-35 procurement
Switzerland’s local industry will receive offset benefits as part of its procurement of 36 F-35A Lightning II aircraft. Mercury Mission Systems International SA announced on 21 March that it will be expanding on the manufacturing of defence technologies at its facilities in Geneva, in collaboration with Lockheed Martin. The collaboration, valued at CHF40m (USD45.6m), will particularly focus on embedded computing technologies.
Korean company outbids Western suppliers for Peruvian contract
Peru has selected South Korea’s Hyundai Heavy Industries (HHI) as its preferred partner for the local production of naval ships. The conglomerate will collaborate with Servicios Industriales de la Marina S.A. (SIMA), a local Government-owned shipyard, to build a frigate, a patrol vessel, and two landing ships for the Peruvian Navy.
Main headlines from this issue
No offsets for Germany or EU, but no alternative strategy either
“Offset, in general, is harmful; it hurts competition [and] doesn’t drive innovation in the defence industry,” Lutz Holländer, acting head of the German Federal Ministry of Defence’s (BMVg) Defence Industrial Base, said in his presentation at DKF’s spring conference in Berlin. “But we acknowledge the fact that it is there and it's strong and kicking, despite all efforts to abolish it.”
EU releases first defence strategy ahead of DKF
The European Commission released the European Defence Industry Programme (EDIP) on 5 March, a strategy that builds on the European Defence Technological and Industrial Base (EDTIB) to support “greater competitiveness, responsiveness and resilience” in the EU over the next decade. Presenters at the DKF spring conference offered their view on the changing landscape of defence in Europe, and the role of offsets in the region.
Ukraine expands collaboration with European defence firms
Ukraine is progressively expanding its localisation collaborations with European partners as it continues to enhance its defence industry. Czechoslovak Group (CSG) is currently negotiating with UDI on the creation of joint ventures for ammunition production. Meanwhile, Rheinmetall announced plans to establish at least four new production plants in the country. Additionally, other German and French suppliers have also revealed partnerships with Ukrainian counterparts, particularly in drone and ground equipment.
Saab builds manufacturing unit in India with 100 percent FDI
Saab has received approval from the Indian government to make a 100 percent foreign direct investment in the country for the local production of its Carl-Gustaf M4 weapon systems. Saab started the construction of a manufacturing unit in Jhajjar, Haryana, on 4 March. Production of the weapon systems is scheduled to commence next year.
EDGE and INDRA to set up JV for radar production in the UAE
EDGE Group and INDRA announced on 4 March the signing of a joint venture agreement for the development and manufacturing of radar systems in the UAE. The Abu Dhabi–based JV will have access to a non-NATO, non-EU pipeline of orders of nearly 300 advanced radar solutions valued at EUR2bn (USD2.2bn).
Plausible Japan collaboration with AUKUS invites criticism
Earlier this month, the members of the trilateral security partnership AUKUS, invited Japan to collaborate with them on the development of future defence technologies. On 2 March, the US discussed with its AUKUS partners the possibility of inviting Japan to collaborate. If the collaboration were to proceed, Japan would be the first country invited to work in the AUKUS framework.