“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.”
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 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 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 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).
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.