November Defense Trade Newsletter Highlights

Japan Delivers First Domestically Produced Patriot Interceptors to U.S. Japan has completed its first delivery of domestically produced Patriot Advanced Capability-3 (PAC-3) interceptors to the United States, drawn from Japan’s Air Self Defense Force inventory. The missiles were sent at Washington’s request to help replenish stocks of Patriot missiles depleted following transfers from U.S. reserves to Ukraine.

EDGE Group’s $7 Billion Deal with Indonesia Marks Largest International Foray Yet, as CEO Pushes Expansion On the heels of the Dubai Air Show, EDGE Group announced a $7 billion comprehensive modernization agreement with the government of Indonesia, aimed at overhauling the country’s armed forces. The agreement represents EDGE Group’s largest international project to date and will see EDGE defense hardware, including air defense missile systems, infantry fighting vehicles and cyber defense software, localized in Indonesia.

UK, Indonesia Agree to $5.2 Billion Maritime Partnership, Boost Indo-Pacific Security  Indonesia has reached an agreement with the United Kingdom to launch a $5.2 billion Maritime Partnership Program (MPP), led by British defense firm Babcock, which will see Indonesian shipyards build naval and fishing vessels with the help of British expertise.

Leonardo DRS, Hofmann Team Up on Next-Gen Naval Propulsion for AUKUS  U.S. naval firm, Hoffman Engineering, and Leonardo DRS have signed an agreement to jointly develop next-generation naval electric, hybrid and steam-powered submarine propulsion systems to support AUKUS defense cooperation.

Netherlands Mulls Local Production of Raytheon’s Amraam Missile According to the Dutch Ministry of Defense, Raytheon will explore the possibility of manufacturing AIM-120 advanced medium-range, air-to-air missile in the Netherlands after the United States approved the prospect of a feasibility study. The 2026 feasibility study will review how Dutch industry can contribute to production, assembly and maintenance of the AIM-120 Amraam.

Rheinmetall Advances East Europe Expansion with Lithuania Plant Rheinmetall AG moved ahead with plans to invest around €300 million and construct an ammunition plant in Lithuania, which is the largest defense investment in Lithuania’s history. Rheinmetall’s facility will produce 155-millimeter artillery shells on a 340-hectare site in Baisogala, with plans for initial production of 35,000 artillery shells before expanding to 100,000 in 2027.

Russia’s Arms Makers Thrive Despite Sanctions The Stockholm International Peace Research Institute (SIPRI) released a new analysis that states Russia’s arms makers boosted income in 2024 despite Western sanctions and falling foreign sales. Specifically, Rostec and United Shipbuilding Corporation increased their combined arms revenues by 23% to $31.2 billion due to domestic demand.

F-35, Tank Sales Part of New U.S.-Saudi Strategic Defense Agreement In addition to an unspecified number of F-35 fighter jets, the Saudi-U.S. Strategic Defense Agreement (SDA) includes the sale of “nearly” 300 Abrams tanks to the Kingdom, in addition to a number of other potential defense sales. According to General Atomics executives, the firm is engaged in talks to sell up to 130 MQ-9B and 200 Gambit loyal wingman drones to Saudi Arabia.

Raytheon-Rafael Joint Venture to Supply Israel with Tamir Missiles Under $1.25 Billion Deal R2S, a joint venture between Rafael and Raytheon, has secured a $1.25 billion contract to supply the Israel Military Defense Organization with Tamir surface-to-air missiles, including missile kits and test equipment. The contract coincides with the opening of a new production facility in Arkansas, which will manufacture Tamir warheads for Israel’s Iron Dome system.

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