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Volume 2025
Main headlines from this issue
India seeks maximised industrial participation with new defence procurement manual
India released the Defence Procurement Manual (DPM) 2025 on 14 September, which came into effect on 1 November. The manual governs day-to-day purchases for operations, maintenance, spares, repairs, services, information and communications technology, and small equipment.
Ukraine launches initiative to increase localisation
Ukraine has launched the Build in Ukraine initiative to encourage foreign defence companies to establish production or maintenance facilities in the country. The country wants to strengthen its defence supply chain, boost defence-industrial capacity, and shift Ukraine from a recipient of foreign assistance to a full-fledged partner in weapons production.
US firms expand cooperation with Polish industry on jets, missiles
Boeing is looking to strengthen its offer of F-15EX Eagle II jets to Poland by engaging with local industry and reaffirming an industrial cooperation package for the country’s Air Dominance modernisation programme. Separately, US defence technology company Anduril Industries and Polska Grupa Zbrojeniowa (PGZ SA) will jointly develop and produce the Barracuda cruise missile for Poland.
Croatia approves defence acquisitions with offsets
Croatia has approved the procurement of trucks, tanks, counter-drone defence systems, and howitzers under a USD2.25bn defence modernisation package. Local industry will be involved in the delivery of this equipment, and framework agreements are expected to be signed by the end of 2025.
Hanwha Ocean cements submarine offer to the Philippines
Hanwha Ocean has formally offered its KSS-III PN submarines to the Philippines to meet the country’s requirement for two diesel submarines. If selected, Hanwha would deliver on its industrial participation offers, which include a transfer of technology, the construction of a local submarine base in the Philippines, crew training, local infrastructure, MRO facilities, and financing for the procurement.
Hyundai Rotem offers tank and vehicle production to Peru
Hyundai Rotem has proposed to establish a plant in Peru for the K2 Black Panther tanks and the K808 White Tiger amphibious armoured vehicles, in partnership with the Peruvian Army, under a USD270m investment.
Main headlines from this issue
Canada launches new agency to boost local capabilities
The Canadian government announced the creation of the new Defence Investment Agency (DIA) on 2 October. The DIA will aim to centralise and streamline defence procurement practices to build domestic manufacturing capacity, strengthen supply chains, and generate new jobs.
Brazil and India discuss potential counterpurchase deal
Brazil and India are reportedly discussing a defence arrangement that could see the exchange of defence platforms. According to reports, Brazil could acquire India’s Tejas Mk1A fighters and Prachand attack helicopters in exchange for Embraer C-390 Millennium aircraft.
Naval Group, MDL extend partnership to export submarines
France’s Naval Group signed an exclusive MoU with India’s Mazagon Dock Shipbuilders Limited (MDL) on 16 October to further strengthen their existing submarine cooperation. A previous MoU signed in July 2023 had focused on cooperation in the development of submarines. The extended agreement expands the scope of cooperation to allow Naval Group and MDL to jointly pursue export opportunities for Scorpène submarines built in India.
Netherlands launches defence cluster in Ukraine
The Netherlands launched the Dutch Defence Cluster (DDC) in Ukraine on 11 October to further defence-industrial cooperation between the two countries. The Cluster aims to help Dutch companies navigate Ukraine’s defence industry by delivering practical expertise, strategic partnerships, and operational support to Ukraine.
Airbus signs cooperation agreements in the Netherlands
France’s Airbus signed a series of agreements with the Netherlands on 1 October, covering component development and production, in-country maintenance, disruptive technologies, academic collaboration, and workforce development.
L3Harris secures contract for Korean Aircraft Programme
The Republic of Korea Air Force has awarded a USD2.26bn contract to US prime L3Harris Technologies for the delivery of four modified Bombardier Global 6500 aircraft in an AEW&C configuration. Under the contract, announced on 20 October, Korean Air will serve as the domestic integrator for the programme.
Main headlines from this issue
Taiwan signs defence agreements with North American firms
Taiwan’s National Chung-Shan Institute of Science and Technology (NCSIST) signed agreements with six foreign defence primes in the US and Canada during the Taipei Aerospace & Defense Technology Exhibition (TADTE) held on 18–20 September.
Airbus expands MRO cooperation with Thailand
The Royal Thai Air Force has signed agreements with Airbus Defence and Space and Airbus Helicopters to acquire one A330 Multi Role Tanker Transport Plus (MRTT+) aircraft and two additional H225M multi-role helicopters, respectively. Thai Aviation Industries (TAI) will deliver in-country maintenance for the MRTT+ aircraft and complete final integration on the H225M helicopters.
Saab-ST Engineering seek local partners for Estonian naval bid
Sweden’s Saab and Singapore’s ST Engineering have joined forces to offer a variant of their jointly designed Littoral Mission Vessel (LMV) to the Estonian Navy. The two parties are now seeking Estonian industry partners to support their bid for the country’s requirement to replace its ageing naval vessels.
Romania to launch tank acquisition tender with local production
The Romanian Ministry of National Defence has sent a request of approval to its parliament to launch a tender for the acquisition of 216 main battle tanks with local production. Once approved, the parliament will weigh delivery speed, local job creation, and support packages to finalise the deal once the bids come in.
Poland to produce and export South African vehicles
South Africa’s OTT Technologies and Poland’s Bumech have inked an agreement to localise the assembly and production of OTT’s armoured vehicles in Poland. Under the deal signed on 3 September, the two parties have agreed to “Polonise and Europeanise” OTT’s products by enabling their production, marketing, and distribution in Europe.
Morocco to produce Indian vehicles with local content
India’s Tata Advanced Systems Limited (TASL) has inaugurated a defence manufacturing facility in Morocco for the production of Wheeled Armoured Platform (WhAP) 8x8 vehicles. The plant, inaugurated on 23 September, will produce these vehicles through Tata Advanced Systems Maroc (TASM), TASL’s wholly owned local subsidiary based in Berrechid.
Main headlines from this issue
UK eyes closer defence cooperation with Europe
The UK MoD plans to boost the country’s defence-industrial capabilities by strengthening ties with European defence partners, including by promoting closer cooperation and joint investment into the UK and European defence-industrial bases.
GM Defense teams up with local firms for UK land requirement
US firm GM Defense and the UK’s BAE Systems and NP Aerospace have formed ‘Team LionStrike’ to compete for the British Army’s Light Mobility Vehicle (LMV) requirement. Announced on 3 September, Team LionStrike is expected to offer GM Defense’s General Support Utility Platform for the requirement.
Czechia to procure British vehicles with industrial cooperation
The Czech Republic is procuring 18 British Supacat HMT Extenda light armoured vehicles for its army’s special forces, under a CZK1.9bn (USD920m) deal announced on 3 September. The Czech defence industry will be involved in component integration on the vehicles, and a maintenance hub will also be set up in the country.
India could procure 114 Rafale jets with local production
The Indian Air Force (IAF) has submitted a formal proposal to the MoD to acquire 114 Dassault Rafale jets under the Make in India programme. The proposal, submitted last month, is estimated to cost over INR2tr (USD22bn).
Denmark to acquire Franco-Italian missiles systems
Denmark has chosen the Franco-Italian consortium Eurosam’s SAMP/T NG system for its long-range ground-based air defence system (GBAD) requirement. Eurosam, a joint venture between Thales, MBDA France and MBDA Italy, will deliver offset projects with Danish industry as part of the contract.
Ukraine increases cooperation with US firms
RENK America, the US division of Germany’s RENK Group, and Ukrainian Defense Industry (UDI) have agreed to jointly support the development of an infantry fighting vehicle in Ukraine. Separately, US aerospace and defence company AIRO Group will form a joint venture with Ukraine’s Nord Drone to co-develop combat-proven drones.
Main headlines from this issue
UK to introduce new offset policy next year
The UK will introduce an offset regime in the first half of 2026 to boost investment and growth in the country. This was announced in the Defence Industrial Strategy (DIS) that was presented to the UK Parliament on 8 September. The UK’s offset policy will be designed to ensure that secondary benefits are achieved from the MoD’s procurement spending, including the development of local industrial capacity, domestic competition, and economic growth.
BAE Systems wins Norwegian frigate contract
Norway has selected the UK as the strategic partner for its frigate procurement, announcing on 31 August that it would purchase at least five Type 26 anti-submarine warfare frigates from BAE Systems for about GBP10bn (USD13.4bn).
Fincantieri and Naval Group strengthen Polish Orka bids
Italy’s Fincantieri and France’s Naval Group have signed agreements with Poland’s Polska Grupa Zbrojeniowa (PGZ) to strengthen their respective bids for Poland’s Orka submarine acquisition programme.
Sweden offers localisation of CV90 vehicles to Czech industry
Sweden is offering localisation of the CV90 Infantry Fighting Vehicles (IFVs) to the Czech Republic. Sweden will produce a total of 39 vehicles, through BAE Systems Hägglunds, the local subsidiary of the British prime, out of which the first few units will be used for testing in the Czech Republic. The following 207 vehicles will be assembled in the Czech Republic by local company VOP CZ.
Canada shortlists Hanwha and TKMS for submarine project
The Canadian government has shortlisted Germany’s thyssenkrupp Marine Systems (TKMS) and South Korea’s Hanwha Ocean for the Canadian Patrol Submarine Project (CPSP), under which the country aims to procure up to 12 submarines to replace its current fleet of four Victoria-class submarines (see CTO Vol 41 Nos 17 and 22, Vol 42 No 12, and Vol 43 No 10).
Embraer signs MoUs with Lithuanian industry for C-390 aircraft
Brazilian prime Embraer’s regional subsidiary Embraer Defense Europe signed MoUs with eight Lithuanian partners on 8 August, days before Lithuania reaffirmed its plans to procure the Embraer C-390 Millennium aircraft, following its selection in June. The agreements cover MRO, engineering, innovation, technological development, and supply chain management.
Main headlines from this issue
Switzerland reviews F-35 procurement and related offsets
Switzerland’s Federal Department of Defence, Civil Protection and Sport (DDPS) is reviewing the country’s planned acquisition of F-35 jets from Lockheed Martin under its Air2030 programme, following additional payment demands from the US government. Under the review, the DDPS will consider partial compensation for these additional costs through offset initiatives, alongside assessing the cost-benefit returns of existing projects.
Australian industry secures export contracts for Norwegian systems
Kongsberg Defence Australia (KDA) is reaping offset benefits through two European export contracts for Kongsberg’s Naval Strike Missile (NSM) launchers and command-and-control consoles. KDA will produce the NSM launchers for delivery to Denmark and Spain under an AUD50m (USD32m) contract, and has secured a separate AUD30m (USD19.5m) contract to supply NSM consoles to Poland.
Czech industry to produce and export Leopard tank components
The Czech MoD has approved the acquisition of 44 Leopard 2A8 tanks from KNDS Deutschland under a joint procurement agreement with Germany. The Czech government is also negotiating an industrial cooperation agreement with the prime to ensure the involvement of its local defence industry in the production and maintenance of the tanks.
Egypt to join Turkey’s KAAN jet programme
Egypt is on the verge of joining Turkey’s fifth-generation KAAN fighter jet programme. According to reports, Turkey has given Egypt the approval to become a co-producer of its indigenous fighter jet. If Egypt joins the programme, its local defence industry would cooperate with Turkey, in an arrangement that would include a transfer of technology.
Anduril strengthens presence in South Korea
US defence technology firm Anduril is expanding its footprint in South Korea. It has announced new partnerships which involve co-production with HD Hyundai Heavy Industries (HHI) and Korean Air.
Indian firm to set up defence JV in the Philippines
India’s SMPP has signed an MoU with the Philippines’ Asia Defence and Firepower Corporation (ADFC) to establish a joint venture in the Philippines. The proposed JV will locally manufacture, assemble, and distribute customised SMPP defence products to the Philippines.
Main headlines from this issue
Canada’s ITB Policy stunted by unnecessary rules, bureaucracy : media report
Canada’s Industrial and Technological Benefit (ITB) policy has come under fire for being riddled with inefficiencies. According to a report in the Globe and Mail (G&M), the ITB policy, which governs procurements and industrial participation obligations in Canada, is being stunted by unnecessary rules and bureaucracy.
BDT offers local content for British small-arms requirement
BDT UK, the British arm of Beretta Defence Technologies (the defence division of Italy’s Berretta Holding), has offered to locally manufacture small arms in the UK. At a media briefing in London on 17 July, BDT outlined a phased approach to produce small arms in the UK, if awarded a contract under Project Grayburn, offering 5, 20, 80, and 100 percent localisation.
Ukraine advances industrial cooperation in Europe
Ukraine’s Odd Systems will co-develop AI-powered drone interceptor platforms with Denmark’s Terma, while Poland’s Unimot Group is creating a joint venture in Poland with a Ukrainian company for drone production. Separately, Ukraine has signed an MoU with French defence firm Texelis to jointly develop armoured vehicles.
Senegal to assemble German trucks with tech transfer
German vehicle manufacturer Daimler Truck has signed a letter of intent with the government of Senegal and local company Global Truck Systems (GTS) to support the establishment of a truck assembly plant in the West African country. Under the agreement signed on 2 July, Daimler Truck will act as a technology partner and an exclusive supplier of CKD trucks to Senegal for assembly.
Indonesia to produce Turkish missiles
Türkiye’s Roketsan signed a contract on 23 July with PT Republik Roketsan Indonesia (RRI), its joint venture with Republikorp, to facilitate the production of its ÇAKIR cruise missile in Indonesia. Under the agreement, RRI will produce the missiles locally through a transfer of technology from Roketsan.
Mitsubishi wins Australian frigate contract
Australia selected Japan’s Mitsubishi Heavy Industries (MHI) on 5 August to supply 11 Mogami-class frigates, eight of which will be built at Western Australia’s Henderson Defence Precinct under Australia’s Project Sea 300 programme. On the same day, the Australian government signed a Strategic Shipbuilding Agreement (SSA) with local shipbuilder Austal Limited, to establish Austal Defence Shipbuilding Australia, a new subsidiary that would build the vessels at Henderson.
Main headlines from this issue
US Senators urge review of RDP agreements to assess impact on defence industry
Two US senators have urged the Department of Defense to review the Reciprocal Defense Procurement (RDP) agreements it signed with 28 partner countries, due to concerns that those agreements could be hindering the growth of the US domestic industrial base.
Ukraine signs defence deals with Western partners
Norwegian supplier of tactical broadband data links Radionor Communications AS will open a representative facility and possibly an R&D facility in Ukraine. Separately, Ukraine signed an agreement with US firm D&M Holding Company for the production of gunpowder and a memorandum of cooperation with the Federation of Italian Companies for Aerospace, Defence and Security.
India could produce, export French-American drones
French-American aerospace company CYGR and India’s RRP Defence, through its dedicated entity Vimananu have signed a letter of intent to establish a joint venture for drone manufacturing in India.
Hungarian firm to localise EDGE technologies
The UAE’s EDGE Group and Hungary’s 4iG Space and Defence Technologies signed three MoUs on 17 July, each focused on a distinct technology domain. The agreements cover the joint development, localisation, and market integration of several defence systems.
Turkish firms expand cooperation globally
Turkish Aerospace Industries (TAI) has signed an agreement with Airbus to accelerate the export of the Hürjet advanced jet trainer to Spain. TAI also signed an agreement with GE Aerospace on 23 July related to the latter’s F404 engines, and for future collaboration on TAI’s Hürjet programme.
Peruvian Minister notes progress on offset projects
On 10 July, Peru’s Vice Minister of Defense Resources, Adolfo Herrera Orlandini, announced the progress of two Peruvian offset projects by Rheinmetall MAN Military Vehicles Österreich and Norinco.
Main headlines from this issue
India initiates review of DAP 2020
The Indian MoD has initiated a comprehensive review of the Defence Acquisition Procedure (DAP) 2020, the legislation that governs the country’s offset policy. To facilitate the review, the ministry has established a committee to carry out extensive deliberations with all relevant stakeholders.
Russia sets up ammunition plant in Venezuela after severe delays
Russia’s Rosoboronexport has finally completed the construction of a factory in Venezuela for the production of Kalashnikov assault rifle cartridges, two decades after signing a licence agreement.
Peru selects Swedish jet due to strong offset offer
Peru has selected 24 Gripen E/F fighter jets from Sweden’s Saab, beating out offers from France’s Dassault Aviation and Lockheed Martin of the US. Saab’s offset package, which included technology transfer, local production, and maintenance of the jets, is said to have influenced Peru’s decision.
Ukraine strengthens defence cooperation, expands anti-corruption measures
The Ukrainian MoD has signed a memorandum with the American company Swift Beat to expand the production of drone systems for Ukraine. Meanwhile, Ukraine has signed an agreement with Denmark on joint defence production. Separately, Ukraine has announced the expansion of its anti-corruption and compliance measures in defence procurement.
Czech howitzer order risks cancellation
The Czech Republic’s order for 62 units of 155mm CAESAR self-propelled howitzers from KNDS France risks cancellation amid concerns over a failure to meet the technical requirements set in the Czech contract. Under the contract, a majority of the howitzers were to be produced locally.
Nigeria cooperates with Saudi Arabia and Ethiopia to boost local production
Nigeria’s state-run Defence Industries Corporation of Nigeria (DICON) has signed an MoU with Saudi company Homeland Protectors and Supplies Ltd to jointly produce drones, satellite systems, and communications equipment in Nigeria. The country is also exploring opportunities to locally develop and produce drones with Ethiopia.
Main headlines from this issue
International firms use industrial cooperation to target EU market
Non-EU UAV suppliers are leveraging industrial cooperation to enter the EU market. At the Paris Air Show last month, the US’ Anduril and Turkey’s Baykar signed partnership agreements with Germany’s Rheinmetall and Italy’s Leonardo to develop platforms for the European market.
Offsets more beneficial than one-off tech transfer : Indonesian defence official
First Marshal S. Arief Hardoyo, Secretary of the Indonesian Defence Ministry’s Research and Development Agency, has said that offset cooperation in the defence sector would be more beneficial for Indonesia compared to mere transfer of technology (ToT). He made this statement citing risks associated with technology transfer while advocating for the use of offsets.
News out of Indo Defence 2025
Foreign OEMs, including France’s Naval Group, KNDS France, Italy’s Fincantieri and Türkiye’s Roketsan, strengthened their defence partnerships with Indonesia by signing agreements involving joint development and production, local MRO, and technology transfer at the Indo Defence 2025 expo held in Jakarta on 11–14 June.
US reviews AUKUS partnership under “America First” agenda
The Pentagon announced on 11 June that it was reviewing the AUKUS alliance to assess whether the partnership supported US defence priorities in line with President Donald Trump’s “America First” agenda.
CAE partners with Sikorsky, Saab on sensor systems & training
CAE will cooperate with Lockheed Martin’s subsidiary Sikorsky Aircraft to integrate a digital CAE Magnetic Anomaly Detection-Extended Role sensor system aboard US Navy and Royal Australian Navy MH-60R maritime helicopters. Separately, CAE and Saab will develop training solutions for Canada’s future submarine fleet under the Canadian Patrol Submarine Project, if awarded the contract.
Ukraine advances cooperation in Europe
Ukraine has signed industrial partnership agreements for defence production with the UK and Denmark and with Norway’s Kongsberg. While the UK and Denmark will produce Ukrainian equipment domestically, Kongsberg has entered into agreements with two local companies for the production of air-defence missiles and unmanned surface vessels in Ukraine.
Main headlines from this issue
Ukraine launches joint production initiative with partner countries
Ukraine has launched a new international initiative for the joint production of Ukrainian weapons in partner countries. Ukrainian Defence Minister Rustem Umerov announced the initiative on 4 June at the 28th Ukraine Defense Contact Group meeting (‘Ramstein’ format).
Thailand picked offset-heavy Gripen offer over F-16s
The Royal Thai Air Force (RTAF) has decided on the Saab Gripen E/F as its future multi-role fighter jet, with offsets playing a decisive role in the selection. The Swedish offer, selected on 4 June, includes a long-term offset package which reportedly equates to around 155 percent of the contract value.
Turkey advances cooperation in Indonesia and Finland
Turkey signed a USD10bn agreement with Indonesia for the sale of its indigenously developed KAAN fighter jet on 11 June. This followed a defence industry cooperation MoU signed between Turkey and Finland earlier this month, to enhance joint production, technology exchange, and capability development.
Canadian firm expands cooperation with Singapore and Czech Republic
Canadian armoured vehicle company Roshel is engaging in offset projects, as both a recipient and an obligor. Last month, Roshel signed an agreement with Singapore’s ST Engineering to produce the ExtremV vehicle in Canada and a strategic agreement with OMNIPOL to begin production of Senator armoured vehicles in the Czech Republic.
Spain to co-produce Turkish jet and European missile
Turkish Aerospace Industries (TAI) has signed an MoU with Airbus Defence and Space and up to 15 Spanish companies to co-develop a new jet trainer based on TAI’s Hürjet combat aircraft. Separately, European aerospace company Destinus has entered a strategic partnership with Spain’s Grupo Oesía to cooperate on the RUTA long-range missiles.
Rosoboronexport official announces offset discussions worth over $30bn
Russia’s Rosoboronexport is reportedly discussing cooperation projects involving joint production and technology transfer with 20 partner countries valued at over USD30bn. The state-owned export agency’s general director Alexander Mikheev confirmed this to Russian media outlet TASS last month.
Main headlines from this issue
Offsets have made Turkey self-sufficient : Govt official
Murat Çizgel, head of the industrialisation department at Türki̇ye‘s Secretariat of Defence Industries (SSB), gave a presentation at GICA, summarising his country’s changing approach to enhancing its defence industry. Türki̇ye is working on adopting a new approach to industrialisation that will move its current project-based approach to a company-based one.
UAE signs cooperation agreements at domestic forum
The fourth edition of the Make it in the Emirates forum was held in Abu Dhabi on 19–22 May. This issue of the newsletter covers agreements signed on the sidelines of the event, which include cooperation on tanks and aerospace capabilities, radars, land systems and carbon anode exports.
Japan expands cooperation with Patria and Lockheed
Japan Steel Works is preparing to begin the local production of Finland’s Patria AMV 8x8 armoured vehicles, while the US’ Lockheed Martin has selected Fujitsu as the component units supplier for its SPY-7 radar.
Reliance to supply ammo components to Rheinmetall
Germany’s Rheinmetall and India’s Reliance Defence have entered a strategic partnership for the production of ammunition. Under the MoU signed on 22 May, Reliance Defence will supply Rheinmetall with explosives and propellants for medium and large calibre ammunition through a local production facility.
Spain to produce Turkish vehicles and US missile components
Turkey’s FNSS Defence Systems Inc and Belgium’s John Cockerill Defence will partner with Spain’s Technology and Security Developments (TSD) and Grupo Oesía to produce a 6x6 cavalry vehicle platform. Meanwhile, Lockheed Martin España signed an industrial cooperation agreement to support local firms Sener and Tecnobit-Grupo Oesía in the production of PAC-3 MSE components for global export.
Australia and Greece partner on weapon systems assembly
Australia’s EOS Defence Systems and Greek defence and security firm EODH have signed an MoU to cooperate on the assembly in Greece of remote weapon systems (RWS). Under the agreement, EODH will oversee the local assembly of the EOS-designed RWS for upcoming Greek defence programmes.