Saudi Arabian Military Industries (SAMI) announced signing a Joint Venture (JV) agreement for the design and construction of five AVANTE 2200 corvettes with Spain’s state-owned shipbuilding company Navantia. The programme will begin in late 2018 at the company’s San Fernando shipyard in Cadiz and the final vessel will be delivered in 2022. Navantia will be responsible for supporting the ships for five years, with an option for another five years.
The AVANTE 2200 corvette is a multi-role vessel designed specifically for surveillance and maritime control, search and rescue, providing assistance to other vessels and other missions. It has an impressive capability to protect strategic assets, intelligence gathering, as well as anti-submarine, anti-air, anti-surface and electronic warfare, according to a report published by Saudi Press Agency (SPA).
In line with the contract, Navantia and SAMI have agreed on the establishment of a JV in Saudi Arabia, which will provide an exceptional opportunity to consolidate the position of the integrated systems and technologically advanced solutions provided by Navantia in the Saudi market and area of influence, perfectly aligned with the Kingdom of Saudi Arabia’s Vision 2030 by localizing 50% of the total military spending by 2030.
The report also detailed the positive impact of the contract on the Saudi job market, with an expected generation of 6,000 direct and indirect jobs for five years, as follows: 1,100 direct jobs, more than 1,800 from the auxiliary industry, and more than 3,000 indirect jobs generated by other suppliers.
In this respect, the JV will focus on program management and combat system integration and installation, system engineering, system architecture, hardware design, software development, testing and verification, prototyping, simulation, modeling, and through-life support.
The Chairman of SAMI, H.E. Ahmed Al-Khateeb, said the company “remains committed to being a key enabler of the Saudi Vision 2030, and the establishment of this Joint Venture with Navantia will localize more than 60% of ships combat systems works including, installation, and integration, which contribute in Kingdoms objective to be at the forefront of shaping the local military industries ecosystem. We will continue to explore collaborations and leverage partnerships that meet our key mandate to localize more than half of the Kingdom’s total military spending.”
Mr. Esteban Garcia Vilasnchez, Chairman of Navantia, said: “Navantia is very happy with the signature of this contract that means a starting point for the collaboration with Saudi Arabia. Navantia is committed to contributing to Saudi Vision 2030 and will support the country in this endeavor. The Joint Venture between SAMI and Navantia is an opportunity to develop capabilities in the country and jointly explore future opportunities.”
For the AVANTE 2200 contract, the JV will be responsible, among others, of supplying the Combat System of all five ships. Corvettes 4th and 5th will be finalized and deliver in the Kingdom of Saudi Arabia, where the JV will do the installation, integration and test of the complete Combat System.
The JV will contribute to boosting the Royal Saudi Navy forces capabilities to encounter potential threats, maintaining the readiness of their fleets. In addition, the agreement will create approximately 1,000 jobs and training opportunities for Saudi engineers in the Kingdom and augment the participation of Saudi youth in the industry, contributing towards the objectives of the Kingdom's comprehensive Vision 2030 plan.
In reference to the AVANTE 2200 design, the corvettes have been adapted to the RSNF requirements, providing high-end performances, including excellent seaworthiness, high survivability, as well as the capability to operate in the extreme temperatures of the region, all within an optimized lifecycle cost.
The innovative design maximizes Navantia’s participation in the program by means of incorporating its own products such as the CATIZ combat management system, HERMESYS integrated communications system, DORNA gun fire-control system, Integrated Platform Management System, MINERVA integrated bridge, as well as the engines and reduction gears.
Finally, yet importantly, the contract includes other services into the scope of supply as integrated logistics support, operational and maintenance training, delivery of a training center for the ships’ combat management system and Integrated Platform Management System, through-life support, and the combat systems maintenance program.
Saudi Arabian Military Industries (SAMI) is a state-owned military industries company working under the directives outlined in the Saudi Vision 2030. Aiming to be among the top 25 military industries companies in the world by 2030, SAMI is expected to play a key role in localizing 50% of the Kingdom’s total government military spending.
Launched in May 2017, SAMI is combining the latest technologies and the best national talent to develop military products and services at par with international standards across four business divisions - Aeronautics, Land Systems, Weapons and Missiles, and Defense Electronics. The company is also focused on increasing exports and bringing foreign investment to the Kingdom’s military industries sector.
With Saudi Arabia among the world’s top five spenders on security and defense, SAMI’s targets set forth for 2030 include contributing around SAR 14 billion (USD 3.7 billion) to the Kingdom’s GDP, investing over SAR 6 billion (USD 1.6 billion) in research and development, and creating over 40,000 direct jobs locally.
