BAE Systems Inc.`s FNSS Joint Venture Receives $559 Million Award from DEFTECH to Provide AV-8 Vehicles for the Malaysian Armed Forces

ARLINGTON, Virginia -- FNSS of Turkey, a joint venture between BAE Systems, Inc. and Nurol Holding of Turkey, has received and signed a $559 million letter of offer and acceptance (LOA) from DEFTECH of Malaysia for the design, development and manufacture of 257 DEFTECH AV-8 8x8 wheeled armored vehicles and Integrated Logistics Support for the Malaysian Armed Forces.

The vehicle, to be manufactured by DEFTECH in Malaysia, is based on the FNSS-designed PARS 8x8 multi-purpose, multi-mission, wheeled armored vehicle. The vehicle will be redesigned by FNSS and DEFTECH engineers specifically to meet the requirements of the Malaysian customer.

“This effort will not only benefit the Malaysian Army, but will also further develop the indigenous capability in Malaysia,” said John Kelly, vice president of exports and international business for BAE Systems’ Land & Armaments sector. “BAE Systems, Inc. actively looks to support FNSS in its ambition to market its land vehicle expertise globally.”

Malaysia’s AV-8 8x8 armoured wheeled vehicle program involves the local design, development and manufacture of the vehicle, as well as the integrated logistic support. FNSS will provide the technical assistance and technology transfer to enable DEFTECH to produce the vehicles in Malaysia. The AV-8 will be Malaysia’s first indigenous 8x8 armored wheeled vehicle family consisting of 12 variants, for use by the Malaysian Army.

“This project builds on the already successful industrial partnership with DEFTECH, our long term industrial partner in Malaysia. We look forward to supporting DEFTECH on this challenging program and making it another success story in Malaysia,” said Nail Kurt, General Manager and CEO of FNSS. “FNSS is committed to providing the means for DEFTECH to realize the goal of developing an 8x8 Wheeled Armored Vehicle Family (AV8) to meet the Malaysia Armed Forces requirements. The project is based on putting in place the infrastructure to design, develop, produce and maintain a family of 8x8 Wheeled Armored Vehicles.”

FNSS and DEFTECH previously delivered 211 ADNAN Armored Combat Vehicles (ACV) and 8 120mm ACV Mortar Carriers to the Malaysian Army and are now about to complete the deliveries of 48 additional ADNAN ACVs under a separate contract.

source : army guide

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Modernising Malaysia

With the country's military role adapting and expanding, DMJ reflects on Malaysia's procurement plans for a new generation of armoured vehicles… 

Malaysia has recently taken a significant step on the path to the creation of a fully export-capable defence industry by nominating local company DRB-Hicom Defence Technologies (Deftech) to undertake the prototype development of the Malaysian Army's new AV8 8x8 wheeled armoured carriers.

The new programme was officially announced on the opening day of the Defence Services Asia (DSA) exhibition in Kuala Lumpur in April, at which Defence Minister Dato Seri Ahmad Zahid Hamidi said that a contract for up to 257 vehicles would be signed within 12 months of successful trials of the prototype. The total cost is due to be in the region of $2.5bn, with the Ministry of Defence explaining that the contract would cover the entire development and through life costs of 12 APC variants, including a command and control vehicle, an anti-tank weapons carrier, and an anti-aircraft weapon carrier.

In a novel financing initiative, the procurement costs are not being met directly from the ministry's development budget but are due to come from investment by the armed force's retirement fund, Lembaga Tabung Angkatan Tentara (LTAT). The fund will be repaid through an Islamic-based financial instrument to be issued by the government.1

The vehicles will be built at Deftech's manufacturing division at Pehan in Pehang State, a facility in which Deftech has invested up to $22m since its founding in 2001. In a move to stimulate industrial growth, Deftech proposes to subcontract some of the manufacturing to companies across Malaysia's regions, with Sapura Thales Electronics (STE) being the preferred integrator of electronics system. The company will also be working with international partners. It is proposed that the APC variant will be equipped with a two-man turret to be developed and supplied by Denel (Pty) Ltd, the largest defence manufacturer in South Africa.

The AV8 will be based on the successful Pars (Anatolian Leopard) APC family that was developed by Turkish company FNSS, in collaboration with the General Purpose Vehicles (GPV) in the United States, which produced the initial design. FNSS has worked with the Malaysian Defence Ministry in a previous procurement, having supplied 259 ACV-300 armoured combat vehicles in a 2002-2005 programme; the Turkish company also worked with Deftech, the facility where the vehicles were assembled.

The Pars APC was first introduced in 2005 to fulfil both a Turkish Land Forces and an export requirement. It has a modular capability allowing for a variety of weapon fits, including external mounts. As well as being configured in the 8x8 form favoured by Malaysia, Pars has also been made available as a 4x4, 6x6, or 10x10.

In its 8x8 configuration the vehicle carries a crew of two to 12 fully equipped troops. When not employed as a personnel carrier, Pars is also able to transport up to eight tonnes of storage and equipment. It is capable of amphibious operation without prior preparation and features a hydro pneumatic suspension system that enables the vehicle to adjust its ground clearance electronically. All Pars vehicles are designed to be airlifted by a C17, and will fit inside the A400M.

The adaptability and modularity of the Pars design will provide the Malaysian Armed Forces with a vehicle that extends its capabilities in ground operations in one procurement programme. It will also go some way to meeting Malaysia's current defence needs, which envisages a greater emphasis on fulfilling international peacekeeping responsibilities and addressing conventional threats – as opposed to the counter-insurgency operations that characterised its land warfare policy in the 20th Century.

1www.malaysiandefence.com/?cat=89

source Defence Management

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