Main headlines from this issue

New Australian Defence Strategy while detailed, may be ineffective

The Australian government released its first-ever Defence Industry Development Strategy (DIDS) on 29 February. The strategy, essentially an internal review of the Australian Industrial Capability (AIC) policy, aims to provide recommendations and a detailed implementation plan to help grow Australia’s domestic defence industrial base. However, it has attracted criticism for failing to narrow down Australia’s defence priorities or define specific levels of local content in foreign procurements.

Local facilities set up in India despite tech transfer concerns

India has recently bolstered defence partnerships with international companies, Israel Aerospace Industries (IAI) and Brazil’s Taurus Armas S.A., both of which have launched entities and facilities in the country. These developments however, have materialised after facing challenges in securing technology transfers from foreign suppliers.

Romania demands offsets, attracts sole bid from Otokar

As Romania struggles to invite bids for its light armoured tactical vehicles (ATBTU) procurement, Rheinmetall is building a gunpowder factory in the country in collaboration with the European Commission.

Dutch submarine contract awarded to Naval Group attracts criticism

The Dutch government has provisionally selected French shipbuilder Naval Group to deliver its Barracuda submarines as part of the Netherlands’ Walrus-class replacement programme. The company will collaborate with Dutch shipbuilder Royal IHC to deliver a “renewed submarine capacity”.

Swiss industry reaps indirect offset benefits from F-35 procurement

Switzerland’s local industry will receive offset benefits as part of its procurement of 36 F-35A Lightning II aircraft. Mercury Mission Systems International SA announced on 21 March that it will be expanding on the manufacturing of defence technologies at its facilities in Geneva, in collaboration with Lockheed Martin. The collaboration, valued at CHF40m (USD45.6m), will particularly focus on embedded computing technologies.

Korean company outbids Western suppliers for Peruvian contract

Peru has selected South Korea’s Hyundai Heavy Industries (HHI) as its preferred partner for the local production of naval ships. The conglomerate will collaborate with Servicios Industriales de la Marina S.A. (SIMA), a local Government-owned shipyard, to build a frigate, a patrol vessel, and two landing ships for the Peruvian Navy.