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Mon 1 Jul 2019 11:47 AM

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SAMI, Korean conglomerate agree to defence-focused joint venture company

The Saudi-Korean joint venture company will initially focus on munitions and will later explore expanding its product offerings

SAMI, Korean conglomerate agree to defence-focused joint venture company
While the JVC will initially focus on munitions, it will later evaluate the expanding its product lines to include ammunition and weapons, rockets, artillery, combat vehicles, naval systems, command and control systems, as well as intelligence, surveillance and reconnaissance-focused products.

Saudi Arabian Military Industries (SAMI) has signed a Memorandum of Agreement (MoA) with a Korean conglomerate to explore the formation of a joint venture company that will initially focus on the manufacture and sale of munitions.

While the JVC will initially focus on munitions, it will later evaluate the expanding its product lines to include ammunition and weapons, rockets, artillery, combat vehicles, naval systems, command and control systems, as well as intelligence, surveillance and reconnaissance-focused products.

“We are pleased to join forces with Hanwha Corporation, Hanwha Defense and Hanwha Systems to help advance the kingdom’s domestic aerospace and defence industries,” said SAMI CEO Dr. Andreas Schwer.

“With their more than 60 years’ history of active participation in the localisation 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 endeavors aimed at helping achieve the ambitious goals outlined in Saudi Vision 2030,” Schwer added. “We are confident that this collaboration will bring unmatched benefits to our economy and people.”

Sungsoo Lee, the CEO of Hanwha Defence, said that the company has been “working hard to see the fruition of our mutual engagement to localise Hanwha’s vast array of defence products, from munitions to land systems and defence electronics.”

“Hanwha is fully committed to contributing its defense expertise to help achieve the Vision 2030 objectives,” he added. “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 kingdom’s Public Investment Fund (PIF) and includes four business divisions: aeronautics, land systems, weapons and missiles and defence electronics.

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