Spanish naval company Navantia signed an agreement with the Saudi state company SAMI (Saudi Arabian Military Industries) whereby they commit to create a Joint Venture (JV) in Saudi Arabia.
This Joint Venture will be the supplier and integrator of the combat systems for the future contracts of naval programs in Saudi Arabia, starting with the Avante 2200 contract.
The creation of this JV represents an exceptional opportunity to position the integrated systems and technologically advanced solutions of Navantia in the Arabian market and its area of influence and goes in line with the company’s internationalization strategy.
The agreement was signed on the sidelines of the state visit of Saudí Crown Prince, Deputy Premier and Minister of Defense His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud to Spain this past week.
The President of Navantia, Esteban García Vilasánchez, has shown his great satisfaction for the creation of this Joint Venture, as well as for the clear commitment expressed in Madrid by Saudi Arabia with the contract with Navantia for the construction in Spain of 5 corvettes.
“The agreement signed between the two governments demonstrates this commitment and further encourages the early signing of this contract,” he said.
The Defense Ministers of both countries signed an agreement Thursday to continue joint efforts in the defense sector to improve the capabilities of the Saudi armed forces. Both Ministers expressed their intention to complete and facilitate the necessary procedures to sign the contract with Navantia for the construction of five corvettes.
The President of Navantia said that this contract, which has been negotiated since 2015, is strategic for the Company and consolidates the international position of Navantia, especially in the Middle East region, with great opportunities for the future.
He stressed that the construction of the 5 corvettes will have a high impact on the economy and employment, since it is estimated that during 5 years it will employ about 6,000 direct and indirect workers annually. More than 1,100 of them will be direct employees, more than 1,800 employees of the IIAA of Navantia and more than 3,000 indirect employees generated by other suppliers.