RM8b to replace army's armoured vehicles
2010/04/21
KUALA LUMPUR: DRB-Hicom Defence Technologies Sdn Bhd (Deftech) is participating in what could be a multi-billion ringgit programme to replace the aging fleet of armoured personnel carriers in the Malaysian army.
The government has given the wholly-owned subsidiary of DRB-Hicom Bhd a letter of intent, entrusting it to develop the 8x8 Armoured-Wheeled Vehicle (8x8 AWV) programme with the support of the Defence Ministry, Malaysian Army and the Malaysian Defence Industry Council.
Deftech has been working on a prototype for for the last two-and-a-half years and is expected to hand over two test vehicles for the army to evaluate by January 2012.
"We have an order for 257 8x8 AWV units but right now, we are going to come up with the prototypes meant for testing purposes by the army before we develop the whole range of armoured vehicles," Deftech chairman Datuk Seri Mohd Khamil Jamil said at a press conference during the 12th Defence Services Asia 2010 exhibition yesterday.
Earlier, the Defence Ministry had said that the programme to build all 257 of the 8x8 AWV will cost the government RM8 billion.
"We are not sure how much it will cost per unit but the armoured vehicles will be build locally in our plant in Pekan, Pahang," Khamil said.
He said the programme will provide job opportunities for 200 local engineers.
"The armoured vehicles that the nation has right now is old, somewhere between 20 to 30 years, and they need to be replaced desperately. It will be too expensive to refurbish them, that is why its best to build new ones."
Khamil said Deftech is the largest supplier to the Malaysian army and hoped that the 8x8 AWV programme could help spur its efforts to penetrate into the world market.
"Right now we are partnering with several international companies such as Daimler AG, Germany, Denel SA, South Africa and Sapura Thales Electronics (STE) Malaysia for this 8x8 AWV programme," he said.
Deftech chief executive officer Abdul Harith Ab dullah said the company had invested RM70 million since the programme started.
"We will be investing another RM400 million to expand our plant in Pekan, purchase new equipment and machinery and to invest on local talent," he added.