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.