Wednesday 9 October 2013

Boustead-BAE contract to benefit JV

By Farah Adilla
KUALA LUMPUR: Boustead Heavy Industries Corp Bhd (BHIC) and BAE Systems’ joint venture (JV), BHIC Bofors Asia Sdn Bhd, is set to benefit following the award of a RM175 million sub-contract for the sale of six 57mm Mk 3 naval guns for the Royal Malaysian Navy.
In a statement by BAE Systems International yesterday, it said the letter of award for the contract was granted to BAE Systems this week by the systems integrator, Contraves Advanced Devices Sdn Bhd, a JV between BHIC and Rheinmetall Air Defence AG.
BAE Systems integrated systems director Ulf Einefors said the JV company will initially support BAE Systems with production and local procurement of components as part of its 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. Our aspiration is to transfer work to our BHIC Bofors Asia JV venture,” said Einefors in the statement.
The company said 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 Group.
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 the middle of 2015.
The JV 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.




This content is provided by FMT content partner The Malaysian Reserve.

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