Saudi Arabian Military Industries (SAMI) has signed an agreement with Korean conglomerate Hanwha Group’s three affiliates, namely Hanwha Corporation, Hanwha Defence and Hanwha Systems, towards setting up a joint venture company in Saudi Arabia.
The memorandum of agreement (MoA) was signed by Dr Andreas Schwer, CEO of Saudi Arabian Military Industries, and Sungsoo Lee, CEO of Hanwha Defence, who represents the Hanwha companies.
Set to be established as a limited liability company in Riyadh and tentatively named as SAMI-Hanwha Munitions Systems LLC, the proposed entity will initially focus on the manufacturing and sale of munitions within Saudi Arabia.
The JVC will later evaluate the possibility of furthering capability in technology and expanding its product lines to ammunition and weapons, rockets, artillery systems, combat vehicles, defence systems, naval systems, command, control, communications, computers, and intelligence (C4I) systems, and intelligence, surveillance and reconnaissance (ISR) systems.
Dr Andreas Schwer said: “We are pleased to join forces with Hanwha Corporation, Hanwha Defence, and Hanwha Systems to help advance the Kingdom’s domestic aerospace and defence industries. With their more than 60 years’ history of active participation in the localization of imported defence products contributing to Korea’s military self-sufficiency and propelling its economic growth, the Hanwha affiliates are strategic partners for us in our endeavours aimed at helping achieve the ambitious goals outlined in Saudi Vision 2030. We are confident that this collaboration will bring unmatched benefits to our economy and people.”
Sungsoo Lee said: “We have been working hard to see the fruition of our mutual engagement to localize Hanwha’s vast array of defence products: from munitions to land systems and defence electronics. Hanwha is fully committed to contributing its defence expertise to help achieve the Vision 2030 objectives. Hanwha will also work closely with South Korean and Saudi Arabian governments and local companies for the transfer of technology and co-development projects whenever the opportunity arises.”
Established in May 2017, SAMI is owned by the Public Investment Fund (PIF) – Saudi Arabia’s sovereign wealth fund. The company operates four major business divisions, including Aeronautics, Land Systems, Weapons and Missiles, and Defence Electronics. – TradeArabia News Service
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