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Volume 2025
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.
Main headlines from this issue
Primes should take offset obligations “seriously”, says Romanian official
At the GICA conference in Bucharest, Romania heavily promoted the need for primes to treat offset activities “very seriously” in order to keep the country secure, and expressed that failing to create capabilities in Romania would pose a “big issue” for the country.
Ukraine grants US preferential access to its minerals
Ukrainian President Volodymyr Zelenskyy has ratified the US-Ukraine Economic Partnership Agreement following months of negotiations. The deal will grant the US preferential access to Ukraine’s mineral resources in return for wartime aid.
India and France finalise Rafale Deal
India and France have finalised the much-awaited Intergovernmental Agreement for the procurement of 26 Rafale fighter jets from Dassault. Under the USD7.4bn deal, Dassault will establish a production facility in India for the jet’s fuselage as well as MRO facilities for its engines, sensors, and weapons. The deal also includes technology transfer for the integration of indigenous Indian weapons on the jets.
Poland and Saudi Arabia deliver local produced Lockheed missile components
Lockheed Martin’s local partners, Wojskowe Zakłady Lotnicze Nr 1 (WZL1) in Poland and AIC Steel in Saudi Arabia, have respectively completed the production and delivery of the PAC-3 MSE and THAAD missile components at their domestic facilities for the first time.
Korean primes offer localisation to Canada and Chile
Hanwha Ocean and HD Hyundai Heavy Industries (HHI) have jointly submitted a proposal to supply the Royal Canadian Navy up to 12 KSS-III submarines. The proposal includes plans to build facilities for maintenance of the submarines in Canada. Meanwhile, Hanwha Aerospace has expressed interest in supplying the Chilean Army with armoured vehicles in an offer that includes localisation.
Romania to produce Turkish vehicles and US drones
Turkey’s land systems manufacturer Okotar has signed an agreement with Romania’s Rheinmetall Automecanica SRL to establish a joint venture in Romania for the local production of Cobra II vehicles. Separately, Romanian manufacturer Carfil will begin the local production of drones in cooperation with US firm Periscope Aviation.
Main headlines from this issue
NYT report alleges export of British tech to Russia via Indian firm
A New York Times report has alleged that British aerospace manufacturer HR Smith Group’s subsidiary Techtest exported USD2m worth of sensitive technology to Russia via India’s state-owned Hindustan Aeronautics Ltd (HAL). All three entities have denied the allegations.
US report lists offsets as a barrier to foreign trade
The Office of the United States Trade Representative introduced the 2025 National Trade Estimate Report on Foreign Trade Barriers on 31 March. The report lists offsets in government procurements as a foreign trade barrier for the US.
CARACAL to manufacture firearms with Indian industry
CARACAL inaugurated a small arms manufacturing facility in Hyderabad on 21 April, in cooperation with India-based ICOMM Tele, a subsidiary of Megha Engineering & Infrastructures Ltd (MEIL), marking the first ever transfer of technology in defence articles from the UAE to India.
Israel and Russia strengthen cooperation in Peru
Israel Weapon Industries has launched an assembly plant in Peru, in collaboration with local defence industry firm FAME. Separately, Russia’s Rosoboronexport has announced plans to establish a new MRO centre in Peru to service Russian military helicopters locally.
Hanwha to form JV in Poland for missile production
Hanwha Aerospace and WB Electronics signed a term sheet agreement on 15 April to establish a joint venture to manufacture CGR-080 guided missiles in Poland.
Boeing commits to 85 percent Indonesian content for jet purchase
Boeing has offered to deliver on 85 percent local content and offset commitments if the Indonesian government finalises its planned purchase of 24 F-15EX fighter jets.
Main headlines from this issue
Industrial cooperation is the key to success, says Czech official
Radka Konderlová, the director general of the Czech MoD’s Department of Industrial Cooperation, maintained throughout her presentation at the DKF Spring Conference that industrial cooperation was of utmost importance and “the key to success” for the Czech Republic’s defence industry.
Ukraine to develop defence procurement framework this year
Ukraine plans to develop a new legislative framework for defence procurement this year, revealed Glib Kanievskyi, director of Ukraine’s Procurement Policy Department, at the Conference on the Coordination of the Strategic Defence Procurement Review (SDPR) held in Kyiv on 3 April.
KNDS offers local production of vehicles to Greece
KNDS France has signed an agreement with Greek manufacturer METLEN Energy & Metals for the local production of VBCI Infantry Fighting Vehicles (IFVs). Under the partnership, KNDS will transfer know-how related to the IFV’s aluminium armour. The vehicle’s welded structure will also be locally produced at Metlen’s facility in Volos.
EDGE Group strengthens footprint in Brazil
The UAE’s EDGE Group has signed multiple agreements with the Brazilian Navy to cooperate on the joint development of defence systems. The contracts, aimed at strengthening EDGE’s footprint in Brazil, were inked at the LAAD Defence & Security 2025 conference held in Rio de Janeiro on 1–4 April.
South Africa to produce and maintain Embraer aircraft
Brazil’s Embraer signed an MoU on 3 April with South African aerospace and defence firm Denel to cooperate on the KC-390 Millennium aircraft. The collaboration will focus on aerostructures manufacturing and MRO activities.
Indonesia to produce Turkish systems with tech transfer
Turkey’s Roketsan has signed an agreement with Indonesia to set up a facility that will locally produce ATMACA anti-ship missiles, cruise missiles, and smart ammunition systems. The partnership will include a transfer of technology and training programmes for Indonesian engineers and technicians.