Bofors to establish joint venture with PSC Defence in Malaysia

Swedish defence systems company Bofors Defence AB and Malaysia’s PSC Defence Technology Sdn Bhd (PSCDT) will in the second half of October establish a joint-venture company, Bofors Defence Asia Sdn Bhd, to be operational early 2004.
     SST Wafa, director of the new company, told Malaysian daily The Star that PSCDT would take a 51 percent stake in the joint venture, which would have an intial capital of RM 1 million.
     “Besides equipment, part of the investment would go towards recruiting an initial workforce of at least 10 engineers,” he said, adding that the workforce is expected to be doubled every year.
     Wafa also revealed after signing of the joint-venture agreement between Bofors Defence AB and PSCDT that Bofors Defence Asia would produce parts locally for Bofors’ 40mm, 57 Mk1 and 57 Mk2 guns.
     He said the joint-venture company would have the capability to also provide integrated logistics support to all Bofors clients in Malaysia and the region, which would include countries such as Brunei, Thailand, and Indonesia.
     Bofors Defence Asia will have its headquarters in Kuala Lumpur and a production site in Lumut, which will start operations in early 2004.
     Initially, the 40mm gun will have 40 percent local components, while the 57 Mk1 and 2 will each have 20 percent local components, according to Wafa.
     Bofors Defence Asia will also work on supplying the next generation of 57mm and Mk3 guns and smart ammunition for future naval programme.
     Smart guns and smart ammunitions are equipped with chips that enable them to have tactical flexibility, which means the ammunition and guns can be programmed to achieve partial damage or total destruction
     “A significant part of the output can be manufactured and assembled in Malaysia under licence,” he said.

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