Spain, Saudi Arabia ink pact on naval systems and vessels

[Zarvan]

Saudi Arabia has signed for the Navantia Avante 2200. Venezuela currently operates the Avante 2200, with the first-of-class seen here. Source: Navantia

Key Points

• Saudi Arabia has signed an agreement with Navantia on procurement of corvettes, with new industrial partnership with Navantia
• The development of industrial relationship works to position Saudi industry for future naval procurements and systems development

The Saudi Arabian government has signed an agreement with Spain’s Navantia for five Avante 2200 corvettes to be used by the Royal Saudi Navy (RSN).

During a visit to Spain by Saudi Arabia’s Crown Prince Mohammed bin Salman bin Abdulaziz, a letter of intent (LOI) was signed between Saudi Arabia and Navantia for the design and construction of the corvettes, including the vessels’ combat management systems. A memorandum of agreement (MOA) was also signed between Saudi defence company Saudi Arabian Military Industries (SAMI) and Navantia to create a joint venture (JV) to help deliver the vessels.

According to SAMI, the new JV will focus on a range of tasks, including programme management and combat system integration and ‎installation; system engineering; system architecture, hardware design, and software ‎development; testing and verification; prototyping; and simulation and modelling.

Furthermore, the JV will create approximately 1,000 jobs in Saudi Arabia, with projected revenues to exceed USD8 billion by 2030.

It was reported in 2016 that the negotiations between the two sides had also envisaged the development of a naval base and related support infrastructure to help support the vessels throughout their service with the RSN.

Jane’s estimates that the overall contract value is expected to be worth between EUR2.2 billion (USD2.7 billion) and EUR4.4 billion including subsystems, life-cycle maintenance, and crew training programmes.

Exact details of the planned Saudi variant of the Avante 2200 are not yet known. Venezuela operates the Avante 2200 in the form of the Guaiqueri-class offshore patrol vessels.

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http://www.janes.com/article/79254/spain-saudi-arabia-ink-pact-on-naval-systems-and-vessels

 

[The SC]

Navantia will create 6,000 jobs with the Saudi Arabian corvettes

The Navantia contract for the construction of five corvettes for Saudi Arabia will employ 6,000 workers for five years, of which 1,100 will be direct, 1,800 for the auxiliary industries of the company and just over 3,000 indirect associated with other suppliers.

The figures have been provided this Friday by Navantia, who yesterday signed, after almost three years of negotiation, the contract for the construction of these ships. Navantia did it on the occasion of the visit of the crown prince of the Saudi kingdom, Mohamed bin Salman, to Spain.

For Navantia, the contract is to date the largest of those obtained abroad and has a strategic nature, as it consolidates its international position, especially in the Middle East region. There, there are "great opportunities for the future", according to the president of the company, Esteban García Vilasánchez.

The agreement includes the creation of a joint venture with the Saudi state company SAMI (Saudi Arabian Military Industries), which will be responsible for providing combat systems for future naval program contracts in the country. The works will begin with the contract of the Avante 2200 boats similar to those that Navantia has already built for Venezuela.

García Vilasánchez showed his "enormous satisfaction" with the creation of this joint venture and with the "clear commitment" expressed yesterday in Madrid by the Saudi Government with this type of project.

The construction of the corvettes is valued at 2,000 million euros and is accompanied by the installation of a base in Saudi Arabia, which will provide training services to the military of the country for the operation of these vessels.

This last aspect was one of those that delayed the signing. The sources consulted explain that the location of the base and the interest of the Saudi Government to raise the prominence of their companies in this project have contributed to the delays. It is assumed that, in the negotiations between both countries, other aspects have also had an impact, such as the progress of the AVE works between Medina and Mecca.

The ships will be built at the Navantia facilities in the Bay of Cádiz, in San Fernando, and will be a boost for the company, which is waiting for other international contracts of greater relevance if possible, such as Australia, Canada , India or the United States.

http://www.expansion.com/empresas/industria/2018/04/13/5ad094d2e5fdea15088b45a4.html