After over two years of talks, Spain’s Navantia has finally been awarded a €1.8 billion contract to deliver five corvettes to the Saudi Navy; as detailed here, Navantia says it is building 100% of the ships’ main components and systems. (Navantia image)
The signing of this contract with Arabia will benefit the entire Navantia staff, the local industry with which it collaborates and, especially, the entire Bay of Cádiz area, which explains why it has received support from all areas of the Administration. This important operation also puts 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 because it has capabilities, facilities and areas of knowledge that are considered essential for Defense and National Security. These are aspects that are being considered in the new Strategic Plan, which are also shared by the workers' representatives and which, in addition, will help to promote innovation and digital transformation projects aimed at strengthening competitiveness.
This contract, which has been negotiated with the kingdom of Saudi Arabia since 2015, will involve a global workload of around seven million hours for the shipyards of Bahía de Cádiz, Ría de Ferrol and Cartagena and their auxiliary industry. It is, therefore, a key contract to guarantee the work activity of Navantia, mainly for its shipyards in the Bay of Cádiz.
The program will start at the end of 2018 and the last vessel will be delivered in 2022. In addition, Navantia will be responsible for Life Cycle Support for five years, from the delivery of the first vessel, with an option for an additional five years.
Regarding its impact on employment, it is estimated that during 5 years approximately 6,000 direct and indirect employees will be generated annually. Of these, more than 1,100 will be direct employees, more than 1,800 employees of Navantia suppliers, and more than 3,000 indirect employees generated by other suppliers.
In addition, it consolidates the Company internationally, and especially its own combat system, which can satisfy the needs of other potential customers in the region and in other markets of interest.
Complete and integral supply
The corvettes will be based on the Avante 2200 and adapted to the requirements of the Saudi Arabian Navy, offering advanced features, among which stand out an excellent behavior at sea, high survival capacity and operating capacity at extreme temperatures in the area of the Gulf, all with an optimum life cycle cost.
The design of the corvettes is state-of-the-art, maximizing at the same time the participation of Navantia incorporating its own products such as the CATIZ combat system, the HERMESYS integrated communications system, the DORNA fire control system, the Integrated Platform Control System, the MINERVA integrated bridge, engines and gearboxes.
On the other hand, the contract also includes the supply of various services such as integrated logistic support, operational and maintenance training, supply of training and training centers for the combat system and platform control system of ships, support for life cycle, and the systems for the maintenance of the ships in the naval base.
Creation of a Joint Venture with SAMI
In addition to the corvette contract, Navantia has agreed with the Saudi state company SAMI (Saudi Arabian Military Industries) the creation of a Joint Venture (JV) in Saudi Arabia.
This alliance benefits Navantia and allows to strengthen the defense programs in Saudi Arabia, reinforcing its economy in line with the Vision 2030 promoted by the Government of this country.
This Joint Venture is an exceptional opportunity to position the integrated systems and technologically advanced solutions of Navantia in the Saudi market and its area of influence, and is aligned with the company's internationalization strategy.
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