SHAH ALAM: AS first reported here, it was confirmed today the SGPV/LCS will be equipped with the BAE Systems 57mm Mk3 guns, naval guns.
This is the first of the systems meant for the SGPV/LCS which was expected to be announced at LIMA last week but were delayed without any explaination. The GE was the most frequent excuse given but I was reliably informed that the delay was mostly due to haggling over the price.
Since Boustead is the client in this case, it is of course their right to get the best terms possible though how much that it will effect the final price of the ships remained to be seen. I expect the deal for the Exocet Mk 3 and VL Mica to follow soon as well as the others apart from the ship-borne helicopters which probably be ordered in RMK11.
The release:
BHIC Bofors Asia Sdn Bhd, the joint venture between Boustead Heavy Industries and BAE Systems (Bofors Asia), created in 2004, is set to benefit following the award to BAE Systems of a sub-contract for the sale of six 57mm Mk 3 naval guns for the Royal Malaysian Navy in a deal
worth approximately RM175m.
BHIC Bofors Asia Sdn Bhd, the joint venture between Boustead Heavy Industries and BAE Systems (Bofors Asia), created in 2004, is set to benefit following the award to BAE Systems of a sub-contract for the sale of six 57mm Mk 3 naval guns for the Royal Malaysian Navy in a deal
worth approximately RM175m.
The contract ‘letter of award’ was granted to BAE Systems this week by the systems integrator, Contraves Advanced Devices, which is a joint venture between Boustead Heavy Industries and Rheinmetall Air Defence AG.
The 57mm naval gun, designed by BAE Systems in Karlskoga, Sweden, will equip the Malaysian Navy’s Second Generation Patrol Vessel – Littoral Combat Ships (SGPV-LCS). The contract includes ammunition hoists, simulator and initial support.
The six versatile SGPV-LCS ships are being built by the shipyard to a design by the French DCNS company. They are designed for a wide range of missions including combat, anti-piracy, counter-terrorism, anti-smuggling operations, search and rescue, humanitarian support, as well as the protection of fisheries and oil and gas platforms
The first gun, will be built at Karlskoga in Sweden, and will be ready for delivery to the Boustead Naval Shipyard in mid-2015 and Malaysian industry will be increasingly involved as the develops.
“Our aspiration is to transfer work to our BHIC Bofors Asia joint venture,” said BAE Systems Integrated Systems Director, Ulf Einefors.
The joint venture company has operations in Kuala Lumpur, Lumut and Kota Kinabalu to carry out maintenance and spares support for the Royal Malaysian Navy and the Malaysian Maritime Enforcement Agency.
“The company could initially support us with production and local procurement of components as part of our global sourcing programme. Then, under a separate transfer of technology programme, assembly and test of the guns, as well as expanding existing maintenance support activities are likely to follow,” Einefors said..
This latest contract underlines the importance BAE Systems places in the establishing long term industrial partnership in Malaysia. John Brosnan, Regional Managing Director in Malaysia said:
“Across maritime defence, aerospace and cyber-security our aim is always to ensure that our Malaysian partners gain the best possible benefits from shared technologies, and skills.
BY MARHALIM ABAS Malaysia Defence
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