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Volume 2026
Main headlines from this issue
Norway introduces new guidelines for defence procurement
Norway introduced New Guidelines for Procurement in the Defence Sector, officially known as Retningslinjer for anskaffelser i forsvarssektoren (RAF), on 1 January. The guidelines outline the country’s provisions on industrial cooperation in foreign defence procurements and bring its procurement framework in line with existing regulations and developments within public procurement.
India makes progress on buying Rafales with 60% local content
India's Defence Procurement Board approved the acquisition of 114 Rafale F4 fighter jets from Dassault Aviation on 16 January. If finalised, India would procure up to 18 aircraft in fly-away condition, and the rest would be manufactured in India with up to 60 percent indigenous content, achieved in phases.
Saab pitches Gripens as Canada reviewed additional F-35 orders
Sweden’s Saab has reportedly outlined an offer to Canada for its potential acquisition of up to 72 Gripen fighter aircraft and six GlobalEye airborne early warning and control (AEW&C) aircraft. Saab’s offer could involve a transfer of technology, local production, and the creation of up to 12,600 jobs in Canada. If finalised, Saab would manufacture the GlobalEye aircraft in collaboration with Canada’s Bombardier.
EDGE-Indra JV to manufacture loitering munitions in Spain
UAE-based defence conglomerate EDGE Group signed an agreement with Spain’s Indra Group on 13 January to set up a joint venture in León to produce loitering munitions. Once approved, the new venture would support the development, production, and lifecycle support of loitering munitions and smart weapons for Spanish and European defence programmes.
Qatari firm strengthens defence cooperation at Doha event
Qatar’s state-owned Barzan Holdings strengthened its defence industrial cooperation with several companies at the Doha International Maritime Defence Exhibition and Conference (DIMDEX) 2026 held on 19–22 January. Among others, the Qatari military firm has inked agreements with Turkey’s Machinery and Chemical Industry Corporation (MKE), Savunma Teknolojileri Mühendislik ve Ticaret A.Ş. (STM), and ASELSAN.
Turkish firm to set up shipyard in Malaysia through JV
Turkey’s Desan Shipyard has signed an agreement to establish a new shipyard through a joint venture with the Straits of Melaka Waterfront Economic Zone (SM-WEZ) Corporation. Malaysia’s Henry The Black Shipyard Sdn Bhd will fulfil the role of project developer.
Main headlines from this issue
Industrial cooperation takes centre stage at European conference
The DKF held its Autumn Conference on 24–25 November in Arendal, Norway, featuring the theme “Northern Lights of Industrial Collaboration.” At the event, representatives from the Norwegian MoD and domestic industry highlighted the importance of offsets and industrial cooperation.
Patria and Germany sign CAVS contracts with offsets
Finland’s Patria signed two serial production contracts with Germany under the CAVS programme on 18 December, for Germany’s procurement of up to 876 Patria 6×6 vehicles in four variants. The contracts include technology transfer, industrial cooperation, and phased localisation arrangements.
TKMS expands cooperation for Canadian submarine project bid
German shipbuilding prime TKMS has partnered with Canadian firms to strengthen its bid for the Royal Canadian Navy’s Canadian Patrol Submarine Project. TKMS and Canada’s Marmen will locally manufacture submarine sections and complex assemblies for the Type 212CD submarine, while with Cohere, TKMS will explore the integration of advanced AI technologies into the CPSP.
Spain to procure Turkish jets with localisation
Spain has concluded a EUR2.6bn deal with Türkiye to procure 30 Hürjet light training jets from Turkish Aerospace Industries as part of Spain’s Integrated Training System – Combat programme. The Spanish MoD selected Airbus Defence and Space on 30 December to act as the national coordinator for this programme.
Hanwha inks Chunmoo agreements with Poland and Estonia
South Korea’s Hanwha Aerospace has signed agreements to supply its Chunmoo guided missiles to Poland and Estonia in separate contracts that both include industrial participation.
India to produce Thales radar structures for its Rafales
France’s Thales has awarded a contract to India’s SFO Technologies to manufacture wired structures for the RBE2 radar, to be fitted onto India’s Rafale fighter aircraft. Under the contract, SFO Technologies will perform manufacturing activities, alongside gaining expertise in electronics, microelectronics, and system integration for radar sub-structures.
Volume 2025
Main headlines from this issue
Tunisia’s new procurement law mandates industrial participation
Tunisia has approved a new framework for military procurement that could mandate industrial participation in major foreign contracts. According to intelligence analysis and security consultancy firm African Security Analysis, the policy seeks to replace the country’s previous multi-layered procurement approval procedure with a streamlined system.
Russia could set up naval base in Sudan in exchange for weapons
Sudan has offered Russia the opportunity to establish a naval base on its territory in exchange for weapon systems. The Wall Street Journal reported on 1 December that under the 25-year proposal, Russia would be able to dock up to four vessels and station up to 300 navy personnel at the Sudanese base.
Poland selects Saab for Orka submarine programme
The Polish Ministry of National Defence (MoND) has selected Sweden’s Saab to supply three A26 submarines for its much-anticipated Orka submarine programme. According to Deputy Prime Minister and Minister of National Defence Władysław Kosiniak-Kamysz, Saab’s proposal, involving cooperation with Polish industry and knowledge transfer, was the only one that fully met the Polish Navy’s requirements.
Safran expands defence cooperation with Indian industry
France’s Safran is expanding its footprint in India. The OEM made a series of localisation announcements on 26 November, including the setting up of MRO facilities for LEAP and M-88 engines, and a joint venture for Hammer missile production in partnership with India’s Bharat Electronics Limited.
UK to develop maritime capability in Indonesia
The UK and Indonesia have signed an agreement to jointly develop maritime capability, covering both defence and civilian applications, for the Indonesian Navy under the Maritime Partnership Programme. British prime Babcock will lead the GBP4bn (USD5.3bn) programme.
Austria procures Italian jets with industrial cooperation
Austria has finalised a EUR1.5bn (USD1.74bn) contract with Italy for the procurement of 12 Leonardo M-346FA light fighter jets under a government-to-government procurement. The purchase, announced on 29 November, includes an industrial cooperation agreement expected to generate around EUR400m (USD465m) through orders for the Austrian industrial base.
Main headlines from this issue
“Embrace industrial cooperation as an engine of inclusive growth” : South African Minister
Zuko Godlimpi, South Africa’s Deputy Minister for Trade, Industry and Competition, stated in a presentation at the GICA Autumn conference that industrial participation must not be treated as a compliance exercise but, rather, “embraced as an engine of inclusive growth”. According to Godlimpi, industrial participation strengthens small and medium enterprises, expands skills pipelines, and stimulates investment in R&D.
MBDA furthers localisation in the UAE
MBDA is doubling down on defence localisation in the UAE. The prime plans to establish a wholly owned company in the UAE; it has signed an agreement with France’s Fly-R to co-develop loitering munitions through this new company; and it will set up a thermal battery manufacturing plant in the UAE.
Thailand seeks offsets for frigate procurement
Thailand is setting up a selection committee to look into the planned purchase of two frigates under the Royal Thai Navy’s (RTN) Light Frigate Procurement Project. This was ordered by the RTN Chief Admiral Pairote Fuengchan, who announced progress on the project on 20 November. He noted that the project will include an offset element that requires construction in Thailand to generate economic benefits.
Saab signs offset deals with Colombia for Gripen purchase
Sweden’s Saab has signed a contract with the Colombian MoD for the supply of 17 Gripen E/F fighter aircraft. The two parties simultaneously signed two offset agreements relating to the procurement, which cover both defence and civil projects.
Rheinmetall expands investment in Eastern Europe
Rheinmetall is investing EUR1.5bn (USD1.73bn) to establish joint production facilities in Bulgaria and Romania. The German prime is partnering with VMZ in Bulgaria to produce energetic materials and artillery shells, and with Pirochim Victoria to co-produce modular propellants and propellant powder in Romania.
BAE Systems wins Indian vehicle contract
The UK’s BAE Systems has won a contract for the supply of 18 BvS10 Sindhu all-terrain vehicles to the Indian Army. The OEM will partner with India’s Larsen and Toubro, which will locally manufacture the vehicles at its Armoured Systems Complex in Hazira, through a transfer of technology.
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.