SAUDI ARABIA

SAMI signs JV deal for five warships with Spain's Navantia

July 19, 2018

RIYADH — The Saudi Arabian Military Industries (SAMI) has forged a deal with Spanish shipbuilder Navantia for a joint venture to build five warships, Saudi Press Agency (SPA) said Thursday.

The agreement with SAMI for the design and construction of five Avante 2200 corvettes warships will start this autumn, with the last unit to be delivered by 2022. The agreement announced on Thursday will generate up to 6,000 jobs for five years, including 1,100 direct jobs, SPA reported.

In line with the contract, Navantia and SAMI have agreed on the establishment of a Joint Venture (JV) 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 Saudi Vision 2030 by localizing 50% of the total military spending by 2030.

The contract will generate 6,000 direct and indirect jobs for five years, 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 JV will focus on program management and combat system integration and installation, system engineering, system architecture, hardware design, software development, testing and verification, prototyping, simulation, modeling, and through-life support.

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

Esteban Garcia Vilasanchez, president 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 the Kingdom’s 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 JV will be responsible, among others, for supplying the combat system of all five ships. Corvettes 4th and 5th will be finalized and delivered in Saudi Arabia, where the JV will do the installation, integration and test of the complete combat system.

The JV will contribute to raising the RSNF capabilities to encounter potential threats, maintaining the readiness of the Royal Saudi Naval Forces fleets. In addition, the agreement will create approximately 1,000 jobs and training opportunities for Saudi engineers in the Kingdom and augment the participation of Saudi youth in the industry, contributing towards the objectives of the Kingdom's comprehensive Vision 2030 plan.

In reference to the Avante 2200 design, the corvettes have been adapted to the Royal Saudi Naval Forces’ requirements, providing high-end performances, including excellent seaworthiness, high survivability, as well as the capability to operate in the extreme temperatures of the region, all within an optimized lifecycle cost.

The innovative design maximizes Navantia’s participation in the program by means of incorporating its own products such as the CATIZ combat management system, HERMESYS integrated communications system, DORNA gun fire-control system, Integrated Platform Management System, MINERVA integrated bridge, as well as the engines and reduction gears.

In addition, the contract includes other services into the scope of supply as integrated logistics support, operational and maintenance training, delivery of a training center for the ships’ combat management system and Integrated Platform Management System, through-life support, and combat systems maintenance program.

The Avante 2200 corvette is a multirole vessel designed specifically for surveillance and maritime control, search and rescue, providing assistance to other vessels and other missions. Furthermore, the vessels will have an impressive capability to protect strategic assets, intelligence gathering, as well as anti-submarine, anti-air, anti-surface and electronic warfare. — SPA


July 19, 2018
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