Main headlines from this issue

GICA Spring 2026 Conference : US Arms Transfer Strategy and FMS

At GICA, Government officials elaborated on the approach that the US is taking on arms transfers, offsets, and industrial cooperation, noting that the country is undergoing its most significant transformation in the sector in decades. The US is focusing on working out in real time, the strategy launched by the 6 February Executive Order Establishing An America First Arms Transfer Strategy.

Estonia to release Industrial Cooperation guidelines 13 years after halting offsets

Estonia is moving towards a formal industrial cooperation policy that will embed domestic industrial participation into large-scale defence procurements. Although the framework has yet to be finalised, the MoD has already begun applying the principles of its upcoming policy on a case-by-case basis to gain practical experience.

Switzerland considers alternative air defence solutions with local production, amid Patriot delivery delays

Switzerland’s Federal Office for Defence Procurement (armasuisse) has received submissions from five manufacturers across four countries as part of an assessment related to the potential acquisition of an additional long-range air defence system. Switzerland is undertaking this exercise amid prolonged delays in delivering systems under the US-supplied Swiss Patriot programme.

Australia strengthens AUKUS partnerships

Australia has taken further steps to embed sovereign industrial capability into its AUKUS submarine programme. On 15 May, Australia selected Lockheed Martin as the preferred Combat System Integration Partner for its future fleet of Virginia-class submarines. In parallel, UK firms Babcock International and Truflo Marine have launched a pilot programme to qualify Australian industry members for submarine sustainment work, also under AUKUS.

Norway to produce and export Leopard tanks

KNDS, a consortium of Germany's KMW and France’s Nexter, together with Norway’s vehicle service and maintenance specialist RITEK, has opened a new Leopard 2 production facility in Levanger, Norway. Announced at the end of April, the facility is scheduled to begin production for the Norwegian Army in autumn 2026.

Naval Group wins Swedish frigate contract

Sweden has selected France’s Naval Group to supply four of its FDI frigates for the Royal Swedish Navy under Sweden’s Luleå-class surface combatant programme. Announced on 19 May following a multi-year evaluation process, the contract award initiated a phase of exclusive discussions between the Swedish authorities and Naval Group.