Main headlines from this issue

Boeing to pay Embraer $150m for abandoning aviation deal

As a result of withdrawing from a proposed aviation deal in April 2020, Boeing will pay Embraer a gross amount of USD150m. The collaboration began in July 2018, when Boeing and Embraer signed a Master Transaction Agreement (MTA). The conclusion of the arbitration process was announced on 16 September.

Dassault Aviation goes solo in setting up MRO venture in India

Dassault Aviation is independently setting up an MRO subsidiary in India, after reports in July suggested that it was abandoning its partnership with Reliance Defence on the project. The new venture, Dassault Aviation MRO India (DAMROI), will focus on providing tailor-made support products and services for India’s fleet of Dassault fighter aircraft such as the Rafale and Mirage-2000.

Ukraine advances defence co-production with European firms

Ukraine plans to launch development and production projects with European partners as it focuses on developing local manufacturing capabilities for ammunition and drones. Local firm Ukrainian Armored Vehicles (Ukrainian Armor) will collaborate with the Czech holding Czechoslovak Group (CSG), while Ukraine expects to launch co-production with Slovakia’s Way Industries, and the Netherlands will invest in drone development with the country.

Offsets to contribute €1bn to Dutch submarine project

Industrial cooperation will generate EUR1bn for the Dutch maritime industry against the supply of four submarines to the Royal Netherlands Navy. The Netherlands signed a delivery agreement with France’s Naval Group on 30 September covering the procurement.

Saab to open tenth facility in the US

Saab is partnering with the State of Michigan to establish a USD75m facility for the local production of munitions in Grayling. Saab’s investment, announced on 24 September, will create 70 local jobs. Once open, the factory will conduct final assembly and integration of shoulder-fired munitions and precision guided systems.

Korea to purchase Polish weapons for the first time

The South Korean Ministry of National Defense signed a deal with Poland on 2 October to purchase Warmate 3 Kamikaze drones, marking Korea’s first weapons purchase from Poland. The agreement was finalised with Polish defence firm WB Group’s subsidiary, WB Electronics, during the Korea Army International Defense Exhibition held in Gyeryong on 2–6 October.