Main headlines from this issue

UK suspends revised IP Policy, to revisit under new defence industrial strategy

After piloting its Revised Industrial Participation (IP) Policy for over a year, the UK has decided not to proceed further with officially introducing a revised version of its offset policy, for now. Instead, the UK may explore an alternative approach towards industrial participation through an Integrated Procurement Model (IPM). The UK is, however, still reflecting on the revised policy as part of developing its new Defence Industrial Strategy.

France and Germany set up JV for tank procurement

KNDS Deutschland, KNDS France, Rheinmetall Landsysteme, and Thales signed a shareholder agreement on 23 January to establish the Main Ground Combat Systems (MGCS) Project Company GmbH as a joint venture. The new firm will act as the prime contractor for the Franco-German MGCS project, which aims to develop a next-generation main battle tank.

Saudi Arabia expands cooperation with Italian firms

During a roundtable meeting in AlUla on 26 January, Saudi Arabia signed 26 MoUs with Italian defence companies, including Leonardo, Fincantieri, and ELT Group. Local signatories included Saudi Arabia’s Ministry of Investment (MISA), the General Authority for Military Industries (GAMI), SAMI Advanced Electronics Company (SAMI-AEC), and Shamal.

Turkey strengthens ties with Morocco and Saudi Arabia

Turkish defence firm Aselsan visited Morocco on 22 January to discuss potential collaborations in defence technology and the local production of arms to modernise and strengthen Morocco’s military capabilities. Separately, Turkey is boosting its ties with Saudi Arabia in hopes to increase exports to that country.

Thyssenkrupp set to win Indian submarine contract

German shipbuilder Thyssenkrupp Marine Systems (TKMS) and Indian defence public sector undertaking Mazagon Dock Shipbuilders Limited (MDL) have emerged as the sole contenders for India’s Project-75(I) under which six submarines are to be built locally for USD5.37bn.

Ukraine eyes co-production with France and Sweden

Ukraine has agreed to sign a bilateral agreement with Sweden, alongside expressing its interest in conducting joint production with France. The agreement with Sweden will support the implementation of joint defence industry projects, while Ukraine and France may jointly produce surface-to-air missile systems.