Hyundai Wia Corp. signs gun parts export contract with BAE Systems

Hyundai Wia Corp., a South Korea-based defense firm, has reportedly signed gun parts export contract with BAE Systems plc of worth USD 100 million via a pre-value accumulation system. As per the agreement, Hyundai Wia will supply over 106 types of gun components such as the lever and trunnion support of 5-inch guns to BAE Systems for the next 10 years.

It is to be noted that a pre-value accumulation system generates the economic trade value when a foreign firm initiates a joint venture agreement or an export contract with a local company.

Sources with relevant information stated that this pre-value accumulation system will allow BAE Systems to use this mileage generated through this contract when conducting trade with Korean government in the upcoming years.

Hyundai Wia mentioned in a statement that it has been focusing on producing 5-inch and 76 mm guns, which are the primary artilleries of the Korean navy fleet, using its own technology. The company claims that it successfully bagged orders by being recognized for its quality handling of superior materials and technology.

Hyundai Wia intends to secure businesses with over 10 domestic medium-sized and small enterprises that provide base parts for the shipbuilding modules, sources claimed. This will be in accordance with Win-Win Cooperation Mandatory System and Electric Trade which was introduced in the previous year.

Wang Jeong-hong, Director of Defense Acquisition Program Administration, was reported saying that the introduction of the pre-value accumulation systems enables the domestic defense firm’s exports to be more active.

An official from Hyundai Wia confirmed that they will continue to attain exports to defense industry in the ensuing years by maintaining a supportive relationship with BAE systems.

As per credible sources, the Defense Industry Agency signed a contract with the BAE Systems previous year in a bid to move ahead with its electric trade which offers a certain amount of money while purchasing weapons from the foreign firms.

Source- https://www.hankyung.com/politics/article/202008267879Y

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