On 12th. July, the Government of Saudi Arabia has signed the contract for the construction of five corvettes, an operation that reaches an amount of 1.8 billion Euros, the biggest one in the history of the public Spanish shipyards with a foreign client.
This contract strengthens the immediate future of Navantia and will benefit all the shipyards of the company.
The signing of this contract with Arabia is going to be of benefit to the whole Navantia workers, to the local industry with which he collaborates and, especially, to the whole Bay of Cadiz, which explains that it should have received supports from all the areas of the Administration. This important operation puts also in value the international presence of the company since it places it in a fundamental area for the development of new programs.
Navantia is a strategic company since it has capacities, facilities and areas of knowledge that are considered to be essential for the Defense and the National Security.
This contract, which has been negotiated by the kingdom of Saudi Arabia from the year 2015, will suppose a global workforce of about 7 million hours for the shipyards of Bay of Cadiz, Estuary of Ferrol and Cartagena, as well as for his auxiliary industry. It is, therefore, a key contract to guarantee the activity of Navantia's work, principally for the shipyards of Bay of Cadiz. The program will start at the end of 2018 and the last ship will have to be commissioned in 2022. In addition, NAVANTIA will be responsible for the Support to the Life cycle for five years, from the delivery of the first nose, with option to other five additional years.
As for his impact in employment, it is calculated that for 5 years, near 6,000 direct and indirect jobs will be generated annually. More than 1,100 of them will be direct employees, more than 1,800 of Navantia's Auxiliary Industry and more than 3,000 indirect generated by other suppliers.
In addition, it consolidates internationally the Company and especially this product with its own system of combat, which can satisfy the needs of other potential clients in the region and on other markets of interest.
Complete and integral supply
The corvettes will be based on AVANTE 2200 design, adapted to the requirements of Saudi Arabia, offering advanced presentations, an excellent behavior in the sea, high capacity of survival and capacity of operation at extreme temperatures as the area of the Gulf, all this with an ideal life cycle cost.
The design of the corvettes is last generation, maximizing simultaneously Navantia's participation incorporating own products as the system of combat CATIZ, the system of integrated communications HERMESYS, the direction of shot DORNA, the Integrated System of Control of Platform, the integrated bridge MINERVA and the engines and the reduction gearboxes.
On the other hand, the contract also includes the supply of several services such as, logistic integrated support, operational training and of maintenance, supply of centers of training for the Combat System and the Control of Platform System, the life cycle support, and other systems for the maintenance of the ships in the Naval Base.
Creation of a Joint Venture with SAMI
Besides the contract of corvettes, Navantia has agreed with SAMI (Saudi Arabian Military Industries) the creation of a joint venture in Saudi Arabia. This alliance benefits Navantia and allows to promote the defense programs in the country, reinforcing his economy. This joint venture is an exceptional opportunity for Navantia to position its integrated systems and technologically advanced solutions in the Arab market and area of influence, and is aligned with the strategy of internationalization of the company.
The corvettes for Saudi Arabia are based on Navantia AVANTE 2200 model, polyvalent ship specially designed for the missions of vigilance and control of the maritime traffic, missions of search and rescue and assistance for other ships, among others.
In addition, the ships will have an important capacity for the defense of strategic assets, intelligence and antisubmarine, anti-aircraft capacity, antisurface and electronic war
Date: Sep 6, 2018