Countertrade & Offset

The UK and Germany will strengthen long-term defence industry cooperation under an agreement signed on 23 October at London’s Trinity House. The agreement outlines joint production opportunities and proposes plans for Germany’s Rheinmetall to open a new factory in the UK. According to the UK MoD, the proposed Rheinmetall factory will facilitate the manufacture of artillery gun barrels in the UK for the first time in a decade. An MoD spokesperson confirmed to #CTO that British steel component producer Sheffield Forgemasters would work with Rheinmetall by supplying British steel to the facility. They added that further details on localisation efforts would be provided when the location of the factory was confirmed. The proposed facility will support more than 400 jobs and generate GBP500m (USD649m) in investment. Find out more in the 21st issue of the CTO newsletter 👉 Link in the comments. #CTO #offset #defenceindustry #UK #Germnay #jointproduction #localisation #cooperation

This week, Countertrade & Offset will be attending the DKF - European Network for Offset, Counter Trade and Industrial Participation 2024 Autumn Conference in Munich! We look forward to engaging in discussions around the conference theme of “Canada - The Industrial Technological Benefits (ITB) policy from an industry and government perspective,” as well as introducing our new CEE Offset Report to attendees. If you are attending the conference, feel free to connect with our Publisher, Rodrik Cave, and our Managing Editor, Rajpriya Bhattacharya. #CTO #offset #defenceindustry #DKF2024

Saudi Arabia has expressed an interest in the purchase of over 100 of Turkey’s indigenously developed and built KAAN fighter jets. The potential collaboration could include technology transfers and support for the local production of the jets. The potential acquisition was discussed last month during a visit to Turkey led by Saudi Air Force Commander Turki bin Bandar Al Saud. Al Saud and his delegation met with officials from ROKETSAN, Turkish Aerospace, and Aselsan to initiate discussions on a potential strategic collaboration on the jet, developed under Turkey’s indigenous fighter jet programme (TFX). Commenting on the potential purchase, Rebecca Lucas, senior analyst at RAND Europe, told #CTO, “it’s certainly well within the realm of possibility. However, it will depend on the details of Saudi’s specific requirements for the KAAN, [and] the evolution of the Turkish-Saudi relationship.” Find out more in the 21st issue of the CTO newsletter 👉 Link in the comments. #CTO #offset #defenceindustry #SaudiArabia #localproduction #technologytransfer #KAAN

Countertrade & Offset is back from the Global Industrial Cooperation Association (GICA) 2024 Autumn Conference in Chicago! Thank you #GICA for the great event! We had a fantastic time listening to the great line-up of speakers and engaging in discussions around shaping the future through #industrialcooperation, #partnerships, and #technologytransfer. We are also thrilled to have had the opportunity to explore our new Central and Eastern Europe (CEE) Offset Report with GICA attendees. Keep an eye out for our usual conference reviews in the #CTO newsletter! This time featuring updates on Malaysia, Switzerland, the US, and more. To subscribe to the CEE Offset Report or CTO newsletter, head over to our website 👉 Link in the comments. #CTO #offset #defenceindustry #GICA2024

India has finally concluded a USD4bn agreement with the US for the procurement of 31 MQ-9B unmanned aerial vehicles manufactured by General Atomics. The deal was signed on 15 October, alongside a contract to establish an MRO facility in India. The announcement comes after eight years of lengthy negotiations between India and the US on the procurement of the drones. The MoD also announced the signing of a contract with General Atomics Global India Pvt. Ltd. for performance-based logistics support through in-country MRO for the drones. As per media reports, the facility could also assemble some of the MQ-9Bs locally to support India’s goals of boosting its indigenous defence capabilities. “We do not yet know the full details in terms of the level of complexity of production that will happen in India,” Rick Rossow, holder of the Chair on India and Emerging Asia Economics at the Center for Strategic and International Studies, told #CTO. “But General Atomics has announced its plan to build MRO facilities in addition to at least one manufacturing partnership.” Rossow further explained that India could face challenges related to indigenisation in the project. Find out more in the 21st issue of the CTO newsletter 👉 Link in the comments. #CTO #offset #defenceindustry #India #localassembly #MRO #indigenisation

Next week, Countertrade & Offset will be attending the Global Industrial Cooperation Association 2024 Autumn Conference in Chicago! We eagerly anticipate discussions around the conference theme: “Innovate to Elevate: Shaping the Future through Industrial Cooperation.” CTO’s Head of Research, Jonata Anicetti, will be presenting on our new CEE Offset Report during the event. Combining ten years of CTO archives, government papers, and private interviews, the CEE Offset Report examines offset trends and developments for ten countries in Central and Eastern Europe. If you are attending the conference, feel free to connect with Jonata, as well as our Publisher, Rodrik Cave, and Managing Editor, Rajpriya Bhattacharya, who will also be in attendance! Many thanks to the Global Industrial Cooperation Association for hosting this important event, we look forward to engaging with all the presenters and attendees! #CTO #offset #defenceindustry #industrialcooperation #GICAConference

Romania has awarded Turkey’s OTOKAR Otomotiv ve Savunma Sanayi A.Ş. its USD934m light armoured vehicles programme (ATBTU) contract for the Cobra II 4X4 vehicle. The Turkish prime has received an official invitation to start negotiations for the deal, in which Romania will procure 1,059 vehicles. Under the agreement, the first 278 vehicles will be produced at Otokar’s facilities in Turkey. The remaining units will be manufactured in Romania in cooperation with local companies. Apart from conducting local production activities, the facility will also conduct R&D, as Otokar aims to use the Romanian facility as a strategic hub for its business in Europe. ----------- In a separate development, Hungary’s Aeroplex of Central Europe Ltd. , in cooperation with Romania’s state-owned aerospace firm Romaero SA Bucharest, inaugurated the Aeroplex Central Europe Ltd. aircraft maintenance base in Bucharest last month. Aeroplex will carry out MRO services for its overseas customers at the facility, utilising Romaero’s infrastructure, facilities, equipment, and staff at Bucharest’s Băneasa Airport. Find out more in the latest issue of the CTO newsletter 👉 Link in the comments. #CTO #offset #defenceindustry #Romania #localproduction #MRO #defenceproduction #cooperation

📢 The CEE Offset Report is now available! 📢 With defence spending and arms imports accelerating across Central and Eastern Europe, nations are turning to offsets to improve self-sufficiency, strengthen partnerships, and support local industry. But obtaining reliable offset intelligence is challenging, with much information imprecise or unconfirmed. The CEE Offset Report steps into this gap. Combining ten years of CTO archives, government papers, and private interviews, the CEE Report delivers a comprehensive analysis of defence offset trends and opportunities in 10 critical countries in the region. For each country, we examine: ✅   Offset trends from 2014 to 2024 ✅   Offset priorities, preferred offset partners, and project performance ✅   Industrial strengths and weaknesses ✅   Potential challenges and opportunities for OEMs ✅   Recent legal amendments and their implications Whether you are involved in defence procurement, policy, research, or manufacturing, the CEE Report provides the intelligence you need to navigate CEE’s defence-industrial landscape. As an annual subscription, updated bi-annually, subscribers to the CEE Report will have access to our team to discuss additional information, government documents, and contact details. Subscribe now to access CEE offset insights 👉 Link in the comments. #CTO #offset #defenceindustry #defenceoffsets #centralEurope #industrialcooperation #offsetintelligence #CEEreport

🌍 CEE Offset Report – Poland sneak peek 🌍 Despite scrutiny from the EU, Poland has continued to prioritise offset in defence procurement. Since 2018, the country has been balancing military preparedness with industrial self-sufficiency. In recent years, Poland has encouraged “Polonisation,” an informal form of cooperation without the “formal burden” of laws. This type of cooperation has become the cornerstone of Polish defence procurement, typically in the form of intergovernmental agreements, and has proven more rapid and efficient than traditional types of offsets. Coming on 12 November, the CEE Offset Report dives into Poland’s offset strategy, covering: ✅ Offset versus “Polonisation” ✅ Expanding partnerships with non-EU suppliers ✅ Preferred offset types by sector ✅ Opportunities for OEMs and defence companies Having almost doubled its defence spending as a share of GDP since Russia’s invasion of Ukraine, Poland’s offset landscape is rapidly transforming. The CEE Report offers actionable insights into Poland and 9 other CEE countries for professionals in defence procurement, policy, research, and manufacturing.   Pre-order the CEE Report now for early bird prices! 👉 Link in the comments. #CTO #offset #defenceindustry #CEE #Poland #industrialcooperation #offsetintelligence #CEEreport

On Friday, 8 November, #CTO will be attending Strategy Council's UK-Ukraine Defence Tech Forum at London’s Royal United Services Institute. CTO’s Managing Editor, Rajpriya Bhattacharya, and Product Lead for our upcoming CEE Offset Report, Elina Solomon, will be in attendance on Friday. We look forward to engaging with industry professionals, and discussing the critical theme of "Accessing financing to scale-up and accelerate the introduction of new technologies" with key stakeholders at the forum. We will also be offering attendees a free copy of the Ukraine chapter from our CEE Report, launching on 12 November! 🌍 CEE Report – Ukraine sneak peek 🌍 The CEE Report covers defence offset trends, opportunities, recipients, and capabilities across Central and Eastern Europe over the past decade. Despite the ongoing conflict, Ukraine continues to prioritise joint production and localised manufacturing in defence procurement. Ukraine’s efforts to leverage industrial cooperation and technology transfer as part of its defence modernisation strategy offers significant opportunities for OEMs and investors alike. In the Ukraine chapter, we explore: ✅   The country’s approach to offset, both pre- and post-invasion ✅   Ukraine’s strategic focus on joint production and localising MRO capabilities ✅   Opportunities and challenges for OEMs #CTO #offset #defenceindustry #defencetechnology #cooperation #UKUkraineForum #CEEReport