Taiwan passes USD8.6 billion funding law to boost navy and air force capability

by Jon Grevatt

According to Janes Defence Budgets, Taiwan's total defence expenditure is forecast to grow strongly in 2022, but decline sharply in 2027 when the approved ‘special budget' comes to an end. (Janes Defence Budgets)

Taiwan's Legislative Yuan announced on 23 November that it has passed a proposed law to allocate TWD240 billion (USD8.6 billion) in additional funding to support the modernisation of the island's navy and air force.

The law – entitled a special statute to upgrade navy and air force defence capabilities – outlines the requirement to provide the funding through a “special budget” that is in addition to the annual military expenditure.

The proposed law, which provides the funding over five years, was submitted to the Legislative Yuan in early October, having been approved by the Executive Yuan in September.

According to the Legislative Yuan, the funding is required to “enhance naval and air defence capabilities and joint combat effectiveness”. It is also intended to “ensure national security and regional peace and stability, and achieve the enhancement of national defence autonomy”.

In reference to autonomy, the law also states that the funding will support the procurement of locally developed and produced military systems.


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Japan sets defence budget target of 2% of GDP

by Jon Grevatt

Japan aims to achieve defence spending worth 2% of GDP by 2027. Janes Defence Budgets analysis suggests that while this effort might prove overambitious, even a limited increase in the proportion of funding allocated to defence will result in strong growth in expenditure. (Janes Defence Budgets)

Japan's Defense Minister Yasukazu Hamada has confirmed a government plan to strongly increase defence spending over the next few years to support the “drastic strengthening of [Japan's] defence capabilities”.

Hamada said in a Ministry of Defense (MoD) press conference that the plan had been endorsed by Prime Minister Fumio Kishida, who, on 28 November, directed his government to increase defence spending to 2% of national GDP by 2027.

“Towards the drastic strengthening of our defence capabilities, [the] prime minister has said it is necessary to urgently strengthen [the defence budget] within five years,” Hamada said in comments published by the MoD.

He added, “I have been instructed to decide on measures to secure financial resources for defence expenditure and revenue in an integrated manner. In response to the prime minister's instruction, the MoD will accelerate co-ordination with the Ministry of Finance and others.”


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Czechoslovak Group buys ammo maker Fiocchi Munizioni

by Marc Selinger

Fiocchi makes ammunition for the .50 Browning Machine Gun. (Fiocchi)

Czech Republic-based conglomerate Czechoslovak Group (CSG) has expanded its foreign footprint by acquiring a 70% stake in Italian ammunition manufacturer Fiocchi Munizioni, the buyer announced on 25 November.

Petr Formánek, CSG's head of mergers and acquisitions, said the Fiocchi purchase is consistent with CSG's strategy of buying companies that are “oriented towards Western Europe and the US”. CSG chairman Michal Strnad said that Fiocchi enjoys a “solid presence” in NATO countries.

Fiocchi, which makes ammunition for handguns, machine guns, rifles, and shotguns, will become part of a new CSG division called CSG Ammo+. Fiocchi employs more than 1,300 people and expects to generate a consolidated revenue of over EUR380 million (USD393 million) in 2022. It has operations in the UK and the US in addition to Italy.

About a fifth of Fiocchi's production is for its defence and law-enforcement segment, a CSG spokesperson told Janes on 28 November. Fiocchi also serves the hunting and sports shooting markets.


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Update: First C-130J-30 for Indonesia produced

by Akhil Kadidal

The first of five C-130J-30s ordered by Indonesia conducts its first test flight on 27 October 2022. (Lockheed Martin)

The first of five Lockheed Martin C-130J-30s ordered for the Indonesian Air Force (TNI-AU) has conducted its first test flight, and the aircraft is being prepared for delivery in 2023.

Lockheed Martin told Janes that the first aircraft (serial number A-1339) is scheduled for delivery in the first quarter of 2023. The remaining four aircraft will be delivered through 2024, a Lockheed Martin spokesperson said. The company added that the first aircraft conducted its maiden test flight on 27 October.

Indonesia has been considering augmenting its existing C-130 fleet for several years. The Indonesian Ministry of Defense did not respond to Janes query for information about the contract details or the acquisition at the time of publication.

The company has since confirmed to Janes that the first aircraft are being sold to Indonesia as part of a Direct Commercial Sale (DCS). Janes assesses that the deal was likely signed in 2019.


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https://www.janes.com/defence-news/industry-headlines/latest/taiwan-passes-usd86-billion-funding-law-to-boost-navy-and-air-force-capability

Taiwan's Legislative Yuan announced on 23 November that it has passed a proposed law to allocate TWD...

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