Defence exports rise to $40m: POF chief
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http://www.dawn.com/2007/08/24/top10.htm
Defence exports rise to $40m: POF chief
By Ihtasham ul Haque
ISLAMABAD, Aug 23: Pakistan’s defence exports increased to more than $40 million in 2006-07 and France, Germany, South Korea, Turkey and other countries have offered joint ventures to manufacture and market small arms and ammunition.
“The industry is also meeting domestic requirements of sophisticated arms and ammunition,” the chairman of the Pakistan Ordnance Factories, Wah, Lt-Gen Syed Sabahat Husain said.
He said the POF’s aggressive marketing efforts had helped it to enhance defence exports in 2006-07 and now it aimed to get more orders.
He said some other countries, including Malaysia and Argentina, had also decided to offer joint ventures.
He said the POF signed a cooperation agreement with Poongsan of South Korea for co-production and co-marketing of complete rounds of 155mm base-burn dual-purpose improved conventional munition (BB-DPICM) by the POF. According to the agreement, the first lot would be delivered to the GHQ in 2007-08.
The POF’s share of work would gradually increase to 50 per cent, starting from 10 per cent. “On our request, the procurement of complete rounds planned by the Pakistan Army was diverted to the POF.
The POF renegotiated the price of the ammunition with M/s Poongsan on C&F basis, which resulted in a saving of $2.726 million,” Gen Husain said.Pakistan, he said, would be getting technology transferred through the joint venture. The joint venture, he said, would provide new market access to Pakistan.
He said the POF and MKEK of Turkey had agreed to share expertise in joint R&D projects to meet requirements of both Pakistani and Turkish armies.
Pakistan Army, he said, was interested in extending the range of its existing stock of 122mm multiple-barrel rocket launchers from 20kms to 40kms. POF has short listed Edepro of Serbia in this regard. Modalities of the joint venture will be finalised subject to successful trials and acceptance by Pakistan Army.
“Also, Nexter of France has agreed to join hands for co-production and co-marketing of 155mm hollow base/base bleed LU211 artillery,” he said adding that trials were expected in September 2007.
He said the POF was planning to build CNG cylinders in cooperation with an Argentine company.
He also said that POF was planning to outsource some of its work to the private sector to concentrate on its core businesses. The outsourcing to the private sector, he pointed out, would be in the downstream industry.
He said that POF had been tasked by the Ministry of Defence Production to prepare feasibility for manufacturing third generation ammunition.
POF has developed an indigenous version of 9mm pistols and is negotiating with international firms, including FN Herstal of Belgium for co-production and co-marketing.
POF was also exploring the possibility of joint venture with Hiehl of Germany for smart and advanced ammunition.
Nitrocheme, one of the top manufacturers of the modular charge system for artillery ammunition, has also agreed to cooperate with POF.
POF is engaged with Rocketsan of Turkey to produce 122mm extended range rockets subject to successful trials and acceptance by Pakistan Army.
Lanx of US has offered to co-produce protective suits for the army by utilising POF facilities.
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It seems that the IDEAS conference initiated some years back on a regular basis started yeilding results. Its a good omen that POF and the related industry started contributing in enhancing exports and getting the much needed foreign exchange.
Joint ventures would surely add to the existing capabilities of POF. As mentioned above (in the story), the products would be cost effective too.
One can hope that the exports would reach to one billion dollars plus in the coming years.
