08 Jul 2020
Posted in Aerospace, Defense & Security
Support for local defense industry continues with combat engineering vehicle orders for South Korea, says GlobalData
Hyundai Rotem was awarded a follow on order for Combat Engineering Vehicles (CEVs) and a maintenance and repair contract for K1 Armored Vehicle Launched Bridge (AVLB), K1 Armored Recovery Vehicle (ARV) as well as the K1A1 Main Battle Tanks (MBT), says GlobalData, a leading data and analytics company.
Mathew George, Ph.D., Aerospace & Defense Analyst at GlobalData, says: “This is the second order of CEVs for South Korea, after an order late last year whose deliveries are expected in December 2020. This order was initially expected to be made towards the end of this year closer to the delivery completion of the first order. However, the economic troubles of COVID-19 have given the government grounds to move certain programs ahead, while maintaining fiscal discipline, to ensure confidence in the market and allow jobs to be secured.”
This was a largely indigenous program that took four years to develop; so there’s a great deal of follow-on benefits with tier II, tier III manufacturers involved as well. While the CEVs are expected to be delivered by 2023, the maintenance and repair contract runs from June to August 2021. This is another area where parts and labor will need to be produced and procured from local industry to ensure jobs are secured and spending continues.
George concludes: “All these steps are in line with previous announcements and programs that South Korea has taken to support its local defense industry and build its reliance on indigenous technologies.”