Latest news with #militaryprocurement
Globe and Mail
4 days ago
- Business
- Globe and Mail
Quebec-based Davie Shipbuilding announces plans to buy Texas shipyards
A Canadian shipbuilder is ready to attempt a major foray into the United States, despite ongoing tensions between the two countries, including around military procurement. Davie Shipbuilding announced on Wednesday that it plans to purchase shipyards in the Texas cities of Galveston and Port Arthur from Gulf Copper and Manufacturing Corp., a U.S. company. Davie's aim is to the use the sites to build icebreaker ships, most likely for sale to the U.S. government for use in the Arctic, in addition to its manufacturing of icebreakers for Canada's navy and coastguard at its existing shipyard in Levi, Quebec. It intends to invest up to $1-billion to expand and upgrade the Texas facilities, which are currently used primarily for ship repair. The announcement, which was made jointly by the two companies, did not include any financial details of the proposed deal. Negotiations have not yet concluded, but Davie said that it expects the acquisition to be finalized by the end of this summer. Paul Barrett, Davie's chief communications officer, told The Globe and Mail that they decided to announce the plans now in the interest of transparency, because the negotiations have become widely known locally around the sites. Mr. Barrett said that broader geopolitical dynamics - which include U.S. President Donald Trump's imposition of tariffs on Canadian exports, and Canada considering shifting some of its military procurement away from the U.S. as it ramps up defence spending - did not play a role in the timing. Nor, seemingly, did a fraught G7 summit scheduled to begin this Sunday in Kananaskis, Alberta. Nevertheless, it is unclear whether Mr. Trump's volatile views toward foreign companies, and toward Canada in particular, could affect Davie's prospects of getting U.S. contracts, or even regulatory approvals. While Mr. Trump has said he wants to build as many as 40 new icebreakers in the U.S. - which would far exceed its existing ship-making capacity - he has also spoken disparagingly if vaguely about Canada wanting to land some of that work. That may have reflected a mistaken impression that companies were seeking to make icebreakers in Canada and then sell them to the U.S., as opposed to doing the manufacturing stateside, but there has been little clarification since. To some extent, Davie's choice of which U.S. facilities to purchase may insulate it from that uncertainty. Mr. Barrett said that, after considering multiple sites, the company was drawn to Galveston and Port Arthur partly by strong logistical fundamentals, ample room to expand, and a skilled local workforce. But he also noted that Davie settled on the Gulf Copper sites partly because of the profitable ship-repair work (largely for the oil-and-gas industry) that's currently done there, and which Davie intends to maintain. Nevertheless, the impetus for the deal is Davie's ambitions to establish itself as a major international player in the making of icebreakers - in high demand among Western countries, amid fears that larger and more modern fleets possessed by China and Russia are jeopardizing Arctic sovereignty. Those aims predate Mr. Trump's current presidency. Last year, on the sidelines of a NATO summit, an agreement branded the Icebreaker Collaboration Effort (ICE Pact) was announced between Canada, the U.S. and Finland, the country that has produced the majority of the world's heavy icebreakers. It subsequently became clear that the pact - billed as a way of jointly addressing an intersection of national-security, economic and climate-change circumstances, including from melting ice caps open up shipping lanes and access to critical minerals - revolved largely around Davie's acquisition of Finland's top icebreaker-maker, which was up for grabs because of sanctions against its Russian owners. Davie is initially drawing off the Finnish know-how acquired through that deal to fill contracts it has been awarded under Canada's National Shipbuilding Strategy. That includes $3.25-billion for a polar icebreaker to be built between the company's Helsinki and Quebec facilities by 2030, as well as vessels to subsequently be built in Quebec. However, Davie signaled from the outset that its ambitions also included drawing off those capabilities to make icebreakers in the U.S., although it was initially non-committal about when it would attempt to do so. Both Davie and the governments that signed the ICE Pact also previously talked up a longer-term ambition to position the three countries as suppliers for partners for other allies' shipbuilding needs, competing against the likes of China and Russia. While it's not known how Mr. Trump's impact on diplomatic relationships may affect that hope, Davie's planned acquisition from Gulf Copper is still being framed in line with the ICE Pact's objectives. 'Adding an American yard would make Davie uniquely positioned in the trilateral Icebreaker Collaboration Effort to deliver advanced icebreakers at speed, scale, and competitive cost,' Wednesday's announcement said, 'countering adversaries' heavily subsidized programs,'
Yahoo
27-05-2025
- Business
- Yahoo
India and Pakistan's drone battles mark new arms race in Asia
By Devjyot Ghoshal, Ariba Shahid, Shivam Patel NEW DELHI/ISLAMABAD (Reuters) -A little after 8:00 pm on May 8, red flares streaked through the night sky over the northern Indian city of Jammu as its air-defence systems opened fire on drones from neighbouring Pakistan. The Indian and Pakistani militaries have deployed high-end fighter jets, conventional missiles and artillery during decades of clashes, but the four days of fighting in May marked the first time New Delhi and Islamabad utilized unmanned aerial vehicles at scale against each other. The fighting halted after the U.S. announced it brokered a ceasefire but the South Asian powers, which spent more than $96 billion on defence last year, are now locked in a drones arms race, according to Reuters' interviews with 15 people, including security officials, industry executives and analysts in the two countries. Two of them said they expect increased use of UAVs by the nuclear-armed neighbours because small-scale drone attacks can strike targets without risking personnel or provoking uncontrollable escalation. India plans to invest heavily in local industry and could spend as much as $470 million on UAVs over the next 12 to 24 months, roughly three times pre-conflict levels, said Smit Shah of Drone Federation India, which represents over 550 companies and regularly interacts with the government. The previously unreported forecast, which came as India this month approved roughly $4.6 billion in emergency military procurement funds, was corroborated by two other industry executives. The Indian military plans to use some of that additional funding on combat and surveillance drones, according to two Indian officials familiar with the matter. Defence procurement in India tends to involve years of bureaucratic processes but officials are now calling drone makers in for trials and demonstrations at an unprecedented pace, said Vishal Saxena, a vice president at Indian UAV firm ideaForge Technology. The Pakistan Air Force, meanwhile, is pushing to acquire more UAVs as it seeks to avoid risking its high-end aircraft, said a Pakistani source familiar with the matter. Pakistan and India both deployed cutting-edge generation 4.5 fighter jets during the latest clashes but cash-strapped Islamabad only has about 20 high-end Chinese-made J-10 fighters compared to the three dozen Rafales that Delhi can muster. Pakistan is likely to build on existing relationships to intensify collaboration with China and Turkey to advance domestic drone research and production capabilities, said Oishee Majumdar of defence intelligence firm Janes. Islamabad is relying on a collaboration between Pakistan's National Aerospace Science and Technology Park and Turkish defence contractor Baykar that locally assembles the YIHA-III drone, the Pakistani source said, adding a unit could be produced domestically in between two to three days. Pakistan's military declined to respond to Reuters' questions. The Indian defence ministry and Baykar did not return requests for comment. India and Pakistan "appear to view drone strikes as a way to apply military pressure without immediately provoking large-scale escalation," said King's College London political scientist Walter Ladwig III. "UAVs allow leaders to demonstrate resolve, achieve visible effects, and manage domestic expectations — all without exposing expensive aircraft or pilots to danger," he added. But such skirmishes are not entirely risk-free, and Ladwig noted that countries could also send UAVs to attack contested or densely populated areas where they might not previously have used manned platforms. DRONE SWARMS AND VINTAGE GUNS The fighting in May, which was the fiercest in this century between the neighbours, came after an April 22 militant attack in the disputed Himalayan region of Kashmir that killed 26 people, mostly Indian tourists. Delhi blamed the killings on "terrorists" backed by Islamabad, which denied the charge. Indian Prime Minister Narendra Modi vowed revenge and Delhi on May 7 launched air strikes on what it described as "terrorist infrastructure" in Pakistan. The next night, Pakistan sent hordes of drones along a 1,700-kilometer (772-mile) front with India, with between 300 and 400 of them pushing in along 36 locations to probe Indian air defences, Indian officials have said. Pakistan depended on Turkish-origin YIHA-III and Asisguard Songar drones, as well as the Shahpar-II UAV produced domestically by the state-owned Global Industrial & Defence Solutions conglomerate, according to two Pakistani sources. But much of this drone deployment was cut down by Cold War-era Indian anti-aircraft guns that were rigged to modern military radar and communication networks developed by state-run Bharat Electronics, according to two Indian officials. A Pakistan source denied that large numbers of its drones were shot down on May 8, but India did not appear to sustain significant damage from that drone raid. India's use of the anti-aircraft guns, which had not been designed for anti-drone-warfare, turned out to be surprisingly effective, said retired Indian Brig. Anshuman Narang, now an UAV expert at Delhi's Centre for Joint Warfare Studies. "Ten times better than what I'd expected," he said. India also sent Israeli HAROP, Polish WARMATE and domestically-produced UAVs into Pakistani airspace, according to one Indian and two Pakistan sources. Some of them were also used for precision attacks on what two Indian officials described as military and militant infrastructure. The two Pakistani security sources confirmed that India deployed a large number of the HAROPs - a long-range loitering munition drone manufactured by Israel Aerospace Industries. Such UAVs, also known as suicide drones, stay over a target before crashing down and detonating on impact. Pakistan set up decoy radars in some areas to draw in the HAROPs, or waited for their flight time to come towards its end, so that they fell below 3,000 feet and could be shot down, a third Pakistani source said. Both sides claim to have notched victories in their use of UAVs. India successfully targeted infrastructure within Pakistan with minimal risk to personnel or major platforms, said KCL's Ladwig. For Pakistan's military, which claimed to have struck Indian defence facilities with UAVs, drone attacks allow it to signal action while drawing less international scrutiny than conventional methods, he noted. CHEAP BUT WITH AN ACHILLES HEEL Despite the loss of many drones, both sides are doubling down. "We're talking about relatively cheap technology," said Washington-based South Asia expert Michael Kugelman. "And while UAVs don't have the shock and awe effect of missiles and fighter jets, they can still convey a sense of power and purpose for those that launch them." Indian defence planners are likely to expand domestic development of loitering munitions UAVs, according to an Indian security source and Sameer Joshi of Indian UAV maker NewSpace, which is deepening its research and development on such drones. "Their ability to loiter, evade detection, and strike with precision marked a shift toward high-value, low-cost warfare with mass produced drones," said Joshi, whose firm supplies the Indian military. And firms like ideaForge, which has supplied over 2,000 UAVs to the Indian security forces, are also investing on enhancing the ability of its drones to be less vulnerable to electronic warfare, said Saxena. Another vulnerability that is harder to address is the Indian drone program's reliance on hard-to-replace components from China, an established military partner of Pakistan, four Indian dronemakers and officials said. India continues to depend on China-made magnets and lithium for UAV batteries, said Drone Federation India's Shah. "Weaponization of the supply chain is also an issue," said ideaForge's Saxena on the possibility of Beijing shutting the tap on components in certain situations. For instance, Chinese restrictions on the sale of drones and components to Ukraine have weakened Kyiv's ability to produce critical combat drones, according to the Center for Strategic and International Studies think-tank. A spokesperson for China's Foreign Ministry said in response to Reuters' questions that Beijing has always implemented export controls on dual-use items in accordance with domestic laws and regulations as well as its international obligations. "Diversification of supply chain is a medium to long term problem," said Shah. "You can't solve it in short term." ($1 = 85.0470 Indian rupees) (Additional reporting by Saeed Shah in Islamabad, Adnan Abidi in New Delhi, Nivedita Bhattacharjee in Bengaluru and Liz Lee in Beijing; Writing by Devjyot Ghoshal; Editing by Katerina Ang)
Reuters
27-05-2025
- Business
- Reuters
India and Pakistan's drone battles mark new arms race in Asia
NEW DELHI/ISLAMABAD, May 27 (Reuters) - A little after 8:00 pm on May 8, red flares streaked through the night sky over the northern Indian city of Jammu as its air-defence systems opened fire on drones from neighbouring Pakistan. The Indian and Pakistani militaries have deployed high-end fighter jets, conventional missiles and artillery during decades of clashes, but the four days of fighting in May marked the first time New Delhi and Islamabad utilized unmanned aerial vehicles at scale against each other. The fighting halted after the U.S. announced it brokered a ceasefire but the South Asian powers, which spent more than $96 billion on defence last year, are now locked in a drones arms race, according to Reuters' interviews with 15 people, including security officials, industry executives and analysts in the two countries. Two of them said they expect increased use of UAVs by the nuclear-armed neighbours because small-scale drone attacks can strike targets without risking personnel or provoking uncontrollable escalation. India plans to invest heavily in local industry and could spend as much as $470 million on UAVs over the next 12 to 24 months, roughly three times pre-conflict levels, said Smit Shah of Drone Federation India, which represents over 550 companies and regularly interacts with the government. The previously unreported forecast, which came as India this month approved roughly $4.6 billion in emergency military procurement funds, was corroborated by two other industry executives. The Indian military plans to use some of that additional funding on combat and surveillance drones, according to two Indian officials familiar with the matter. Defence procurement in India tends to involve years of bureaucratic processes but officials are now calling drone makers in for trials and demonstrations at an unprecedented pace, said Vishal Saxena, a vice president at Indian UAV firm ideaForge Technology ( opens new tab. The Pakistan Air Force, meanwhile, is pushing to acquire more UAVs as it seeks to avoid risking its high-end aircraft, said a Pakistani source familiar with the matter. Pakistan and India both deployed cutting-edge generation 4.5 fighter jets during the latest clashes but cash-strapped Islamabad only has about 20 high-end Chinese-made J-10 fighters compared to the three dozen Rafales that Delhi can muster. Pakistan is likely to build on existing relationships to intensify collaboration with China and Turkey to advance domestic drone research and production capabilities, said Oishee Majumdar of defence intelligence firm Janes. Islamabad is relying on a collaboration between Pakistan's National Aerospace Science and Technology Park and Turkish defence contractor Baykar that locally assembles the YIHA-III drone, the Pakistani source said, adding a unit could be produced domestically in between two to three days. Pakistan's military declined to respond to Reuters' questions. The Indian defence ministry and Baykar did not return requests for comment. India and Pakistan "appear to view drone strikes as a way to apply military pressure without immediately provoking large-scale escalation," said King's College London political scientist Walter Ladwig III. "UAVs allow leaders to demonstrate resolve, achieve visible effects, and manage domestic expectations — all without exposing expensive aircraft or pilots to danger," he added. But such skirmishes are not entirely risk-free, and Ladwig noted that countries could also send UAVs to attack contested or densely populated areas where they might not previously have used manned platforms. The fighting in May, which was the fiercest in this century between the neighbours, came after an April 22 militant attack in the disputed Himalayan region of Kashmir that killed 26 people, mostly Indian tourists. Delhi blamed the killings on "terrorists" backed by Islamabad, which denied the charge. Indian Prime Minister Narendra Modi vowed revenge and Delhi on May 7 launched air strikes on what it described as "terrorist infrastructure" in Pakistan. The next night, Pakistan sent hordes of drones along a 1,700-kilometer (772-mile) front with India, with between 300 and 400 of them pushing in along 36 locations to probe Indian air defences, Indian officials have said. Pakistan depended on Turkish-origin YIHA-III and Asisguard Songar drones, as well as the Shahpar-II UAV produced domestically by the state-owned Global Industrial & Defence Solutions conglomerate, according to two Pakistani sources. But much of this drone deployment was cut down by Cold War-era Indian anti-aircraft guns that were rigged to modern military radar and communication networks developed by state-run Bharat Electronics ( opens new tab, according to two Indian officials. A Pakistan source denied that large numbers of its drones were shot down on May 8, but India did not appear to sustain significant damage from that drone raid. India's use of the anti-aircraft guns, which had not been designed for anti-drone-warfare, turned out to be surprisingly effective, said retired Indian Brig. Anshuman Narang, now an UAV expert at Delhi's Centre for Joint Warfare Studies. "Ten times better than what I'd expected," he said. India also sent Israeli HAROP, Polish WARMATE and domestically-produced UAVs into Pakistani airspace, according to one Indian and two Pakistan sources. Some of them were also used for precision attacks on what two Indian officials described as military and militant infrastructure. The two Pakistani security sources confirmed that India deployed a large number of the HAROPs - a long-range loitering munition drone manufactured by Israel Aerospace Industries. Such UAVs, also known as suicide drones, stay over a target before crashing down and detonating on impact. Pakistan set up decoy radars in some areas to draw in the HAROPs, or waited for their flight time to come towards its end, so that they fell below 3,000 feet and could be shot down, a third Pakistani source said. Both sides claim to have notched victories in their use of UAVs. India successfully targeted infrastructure within Pakistan with minimal risk to personnel or major platforms, said KCL's Ladwig. For Pakistan's military, which claimed to have struck Indian defence facilities with UAVs, drone attacks allow it to signal action while drawing less international scrutiny than conventional methods, he noted. Despite the loss of many drones, both sides are doubling down. "We're talking about relatively cheap technology," said Washington-based South Asia expert Michael Kugelman. "And while UAVs don't have the shock and awe effect of missiles and fighter jets, they can still convey a sense of power and purpose for those that launch them." Indian defence planners are likely to expand domestic development of loitering munitions UAVs, according to an Indian security source and Sameer Joshi of Indian UAV maker NewSpace, which is deepening its research and development on such drones. "Their ability to loiter, evade detection, and strike with precision marked a shift toward high-value, low-cost warfare with mass produced drones," said Joshi, whose firm supplies the Indian military. And firms like ideaForge, which has supplied over 2,000 UAVs to the Indian security forces, are also investing on enhancing the ability of its drones to be less vulnerable to electronic warfare, said Saxena. Another vulnerability that is harder to address is the Indian drone program's reliance on hard-to-replace components from China, an established military partner of Pakistan, four Indian dronemakers and officials said. India continues to depend on China-made magnets and lithium for UAV batteries, said Drone Federation India's Shah. "Weaponization of the supply chain is also an issue," said ideaForge's Saxena on the possibility of Beijing shutting the tap on components in certain situations. For instance, Chinese restrictions on the sale of drones and components to Ukraine have weakened Kyiv's ability to produce critical combat drones, according to the Center for Strategic and International Studies think-tank. A spokesperson for China's Foreign Ministry said in response to Reuters' questions that Beijing has always implemented export controls on dual-use items in accordance with domestic laws and regulations as well as its international obligations. "Diversification of supply chain is a medium to long term problem," said Shah. "You can't solve it in short term." ($1 = 85.0470 Indian rupees)
