ECONOMY

Saudi signs agreement with Spanish Navantia, 60 percent Saudization ensured

General view of the Navantia shipyard in Fene, northwestern Spain on December 26, 2016. (AFP)

Saudi Arabian Military industries (SAMI) announced the signing of a joint venture agreement for the design and construction of five (5) AVANTE 2200 corvettes with Navantia. The program will start this autumn and the last unit to be delivered by 2022.

In line with the contract, Navantia and Saudi Arabian Military Industries (SAMI) have agreed on the establishment of a Joint Venture in Saudi Arabia, which will provide an exceptional opportunity to consolidate the position of the integrated systems and technologically advanced solutions provided by Navantia in the Saudi market and area of influence, perfectly aligned with the Kingdom of Saudi Arabia’s Vision 2030 by localizing 50 percent of the total military spending by 2030.

The contract will generate 6,000 direct and indirect jobs for five years and will be as follows: 1,100 direct jobs, more than 1,800 from the auxiliary industry, and more than 3,000 indirect jobs generated by other suppliers.

In this respect, the joint venture will focus on program management and combat system integration and installation, system engineering, system architecture, hardware design, software development, testing and verification, prototyping, simulation, modelling, and through-life support.

Vision 2030

Chairman of Saudi Arabian Military Industries Ahmed al-Khateeb, said: “SAMI remains committed to being a key enabler of the Saudi Vision 2030, and the establishment of this Joint Venture with Navantia will localize more than 60 percent of ships combat systems works including, installation, and integration, which contribute in Kingdoms objective to be at the forefront of shaping the local military industries ecosystem.”

He added: “We will continue to explore collaborations and leverage partnerships that meet our key mandate to localize more than half of the Kingdom’s total military spending.”

For his part José Esteban Garcia Vilasanchez, Chairman of Navantia said: “Navantia is very happy with the signature of this contract that means a starting point for the collaboration with Saudi Arabia. Navantia is committed to contributing to Saudi Vision 2030 and will support the country in this endeavor.

The Joint Venture between SAMI and Navantia is an opportunity to develop capabilities in the country and jointly explore future opportunities.”

For the AVANTE 2200 contract, the joint venture will be responsible, among others, of supplying the Combat System of all five ships. Corvettes 4th and 5th will be finalized and deliver in the Kingdom of Saudi Arabia, where the joint venture will do the installation, integration and test of the complete Combat System.

(With SPA)

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Last Update: Thursday, 19 July 2018 KSA 15:27 - GMT 12:27
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