BOFORS Defence Asia Sdn Bhd, to be established in the second half this month by PSC Defence Technology Sdn Bhd (PSCDT) and Bofors Defence AB of Sweden, will begin operations early next year.
Its director SST Wafa told StarBiz that PSCDT would have a 51% stake in the joint-venture company.
Bofors Defence Asia will have an initial capital of RM1mil. Besides equipment, part of the investment would go towards recruiting an initial workforce of at least 10 engineers,'' he said. We hope to double the workforce every year.
Speaking after PSCDT signed an agreement with Bofors to set up the joint-venture company, Wafa said 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.
Wafa added that Bofors Defence Asia customers in the region would be countries such as Bangladesh, Brunei, Thailand, and Indonesia.
He said the joint-venture company would also target the Middle East for Bofors weaponry.
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% local components, while the 57 MK1 and 2 will each have 20% local components, he added.
Wafa said the Bofors Defence Asia would also work on supplying the next generation of 57mm and MK3 guns and smart ammunition for future naval programme.
A significant part of the output can be manufactured and assembled in Malaysia under licence, he said.
Wafa said Bofors was the only company in the world capable of producing smart guns and ammunitions.
Smart guns and smart ammunitions are equipped with chips that enable them to have tactical flexibility.
That means the ammunition and guns can be programed to achieve partial damage or total destruction, he said.
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