Main headlines from this issue

Countdown begins as Philippines military prepares for mandatory offsets

The Philippines has taken another step towards mandatory offset demands for foreign OEMs in military and aerospace purchases. At an offset summit held last month the Secretary of National Defence, Delfin Lorenzana, joined more than 115 people, including some of his undersecretaries and assistant secretaries, officers and executives of the various armed forces, members of the bids and awards committees and the technical working group.....

Turkey: SSM to sanction major guideline changes

Turkey’s Undersecretariat for Defence Industries (SSM) is considering revoking the requirement for domestic defence contractors to provide offsets. Other recommendations include reducing the 6 percent bank guarantee on offset performance to 4 percent and to halve the weighting in the evaluation criteria for industrial participation from 40 percent to 20 percent.

WHY Korea can’t cope when defence customers demand offsets

South Korea, whose Defence Acquisition Programme Administration (DAPA) imposes exacting and stringent demands on foreign contractors selling defence equipment, struggles when buyers make similar demands. The challenge is costing valuable orders.

India’s 50 percent local content requirement hits railway buffers

Nripendra Misra, principal secretary to Prime Minister Narendra Modi, has asked all government agencies to give preference to domestically manufactured products over imports for public-funded programmes. The command was issued after the Steel Ministry complained about the railway’s global tender for rails as part of its track replacement programme.

Brazilian RfP allows OEM to build one corvette abroad, three in Brazil

The Brazilian navy has issued a Request for Proposal (RfP) for four general-purpose Tamandaré-class corvettes. Three of the ships must be built by local shipbuilders, whether state-owned or private. The first vessel may be built abroad. The estimated cost is about $1.6bn.