The Council of Ministers has authorized the State Society of Industrial Participations (SEPI) the establishment in Saudi Arabia of a Navantia subsidiary, called Navantia Saudi Arabia, LLC, reports Europa Press.
Ricardo Domínguez, new president of Navantia
Specifically, this Navantia subsidiary in the Asian country will have a share capital of 3.4 million euros, 100% subscribed by the public naval company.
The creation of the company responds to the requirements of the contract signed in 2018 with Saudi Arabia, amounting to 1,813 million euros, for the design, construction and delivery of five Avante 2200 corvettes that includes, among other services, a logistics package, the training of crews and maintenance personnel of the Jeddah Naval Base, the supply of equipment and support systems, as well as support for the life cycle of ships for five years from the delivery of the first unit, extendable for another five years .
The constitution of the company responds to the obligation of the contract that the activities carried out in Saudi territory must be carried out by a subsidiary created in this country. In accordance with this commitment, Navantia Saudi Arabia aims to operate and maintain special vessels and their equipment.
Among the activities that this subsidiary may promote are those of managing the programs in that country that have been contracted by Navantia; participation in the design of Navantia products for Saudi Arabia or other Gulf countries, or technical advice and provision of logistics engineering services during the life cycle of ships of the Royal Saudi Navy or other Gulf countries.
In addition, they also include the supply of materials and systems and equipment for the Naval Base; training and development of R&D activities, as well as the creation of a local network of suppliers.