Defence Contracts Digest: Top Reads 07/03
Top reads from last week's edition of the Defence Contracts Digest, published 07.03.2024.
China hikes defence spend by 7.2% | EU’s €1.5 billion industry package | Australian industrial strategy
Australia has released its Defence Industry Development Strategy, outlining the ways in which the country’s defence industrial base will adapt to a tense geopolitical climate. The landmark strategy outlines seven ‘Sovereign Defence Industrial Priorities’, which include the development of autonomous systems and the enhancement of battlespace management systems.
The EU Commission has proposed a €1.5 billion industry package, as it outlines plans to incentivise joint procurement and encourage members to buy European. The headline efforts included in the package centre around increasing capacity across the EU and accelerating the development of new technologies.
China is set to increase its defence budget by 7.2% in 2024, whilst citing opposition to the “separatist activities” of Taiwan. The increase follows a rise of 7.2% in 2023, and 7.1% in 2022, according to official statistics. China’s claims in the South China Sea, alongside its relationships with Russia and North Korea, position it as a strategic adversary in the considerations of many.
Top contracts last week:
Boeing awarded $3.4 billion contract for 17 P-8A Poseidon aircraft - Naval News
The US Navy has awarded Boeing a $3.4 billion contract to begin manufacturing 14 P-8A Poseidon aircraft for the Royal Canadian Air Force and three additional P-8s for the German Navy.
Poland orders $1.2 billion in Carl-Gustaf M4 Rifles from Saab - Defense News
Sweden’s Saab signed a contract with Poland to provide the country with $1.2 billion worth of Carl-Gustaf M4 recoilless rifles, ammunition and training equipment, in what the company said is its largest ground-combat contract ever.
Babcock awarded £560 million contract to refit HMS Victorious
The goal of this multi-year initiative is to revitalise HMS Victorious to modern standards, ensuring its operational readiness well into the 2030s. Refit of the submarine has been taking place since July 2023, but the project has been expedited with early works authorised by the Ministry of Defence.
