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.