January Defense Trade Newsletter Highlights

Germany and India on the Verge of $8 Billion Submarine Deal ‒ Germany’s Thyssenkrupp Marine Systems and India’s state-owned Mazagon Dock Shipbuilders are negotiating on the details of a submarine manufacturing agreement that would include technology transfer for submarine production. The new submarines are expected to be equipped with air-independent propulsion systems, which prove effective to increase boat endurance and maintain submersion longer.
 
Department of War Launches LYNX to Help Businesses Enter and Compete in Defense Markets ‒ the Department of War’s Office of Small Business Programs announced the launch of LYNX, which is a new digital platform designed to support supplier readiness, improve the department’s visibility into business capabilities, and expand participation in the U.S. defense industrial base. The system is specifically designed for new entrants, small businesses, nontraditional suppliers and growing defense contractors that struggle to navigate defense requirements, readiness expectations and partner discovery. LYNX is also designed to support the department with limited visibility into supplier readiness.
 
Norwegian Parliament Greenlights $2 Billion Artillery Procurement Plan ‒ The Norwegian parliament approved a $2 billion procurement plan targeting long-range artillery systems. Norway considered various procurement options, including Lockheed Martin’s HIMARS, but it ultimately selected the Chunmoo artillery system from Hanwha Aerospace. Norway plans to strengthen its national and Arctic defense capabilities, and Hanwha’s Chunmoo meets Norway’s requirements for ground-based artillery, including a range capability of up to 500km and faster delivery timelines. Norway plans to order 16 launch systems and an unspecified number of rockets.

Taiwan Leaders Face Pushback on Massive Defense Budget Mechanics ‒ Taiwan’s government is fighting to find the funding for a planned increase in military spending, which includes financing for the recent arms purchases from the United States. Opposition parties blocked a special defense budget session due to claims that it is inconsistent with the law and certain members wishing to prioritize military pay and pensions through special appropriations.

EU Commission Endorses 8 Nations’ SAFE Defense Loan Plans ‒ The European Commission endorsed the national defense plans of Bulgaria, Denmark, Spain, Croatia, Cyprus, Portugal and Romania under the €150 billion “SAFE” defense loan program and submitted the proposal to the European Council to approve the financial assistance.

UK MoD Faces Budget Constraints, Defence Chief Warns ‒ UK Air Chief Marshal Sir Richard Knighton, chief of the Defense staff, met with the House of Commons Defense Committee to discuss concerns that the UK Ministry of Defence will struggle to deliver current programs and desired capabilities in the Strategic Defense Review under current budget constraints.

Shares in Czech Ammunition Group Surge 31% on Stock Market Debut ‒ Shares in the Czechoslovak Group soared 31% on its trading debut in Amsterdam, which highlights investor interest in defense stocks as Europe increases defense spending.

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