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.
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).
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 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.
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).
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.