Main headlines from this issue

Tawazun threatens to call in offset penalties, prepares for renegotiations

The UAE’s offsets agency Tawazun has sent letters to a number of defence primes threatening to call in offset penalties. The agency accuses the companies of failing to meet extended deadlines for fulfilling offset obligations, says a defence industry source. Tawazun would not identify the firms.

UK appoints new directorate for industrial participation, further muddies responsibility

The UK government has transferred its industrial participation portfolio to the newly-created Directorate of Industrial Strategy and Exports (DISE). DISE, however, will not work alone on the UK’s industrial participation portfolio.

South Korea moves closer to “Made in Korea” policy

South Korea appears to be moving closer to an industrial policy that requires suppliers to use local contractors whenever possible. It is reportedly developing a new programme that will prioritise local sourcing in industrial co-operation projects linked to defence contracts. The policy will run alongside South Korea’s offset policy.

Australia scraps $70bn deal with Naval Group, plans to build nuclear subs with British and American technology

Australia, Britain, and the United States have announced a historic defence agreement that will see Canberra build nuclear-powered submarines with British and American technology. The pact, AUKUS, freezes out Naval Group’s $70bn deal for 12 Attack-class submarines, Australia’s largest-ever defence contract.

India signs $2.7bn contract with Airbus Defence for transport aircraft

India has signed a Rs200bn ($2.7bn) contract with Airbus Spain to procure 56 C-295 transport aircraft. Most of the aircraft will be manufactured locally. It marks the first time military aircraft will be made in India by a private company.