Indonesia’s PT Dahana has in early November signed a memorandum of understanding (MoU) with Edge Group subsidiary Lahab Defence Systems for a possible joint venture in the construction of a TNT plant at the Dahana Energetic Material Center (EMC) area in Subang.
The MoU also calls for co-operation in the production of several types of explosives, leveraging on the existing capabilities of both companies.
“Lahab’s agreement with Dahana is a perfect example of two highly specialised companies coming together to explore joint synergies and opportunities which will allow us to grow our individual and sovereign capabilities through partnership,” said Lahab CEO Arafat Al Yafei.
“By utilising these unique strengths, we are able to play a strategic role in strengthening the economic and security relationships between our countries, while pushing the boundaries of technology, and ultimately the superior services and solutions we offer our customers in both the defence and commercial sectors, while minimising potential disruption,” he added.
According to Lahab, both companies will also establish a joint technical team to develop a roadmap and determine means to advance existing infrastructure in Indonesia, as well as potential joint production of propellant and RDX. Indonesia’s domestic requirements for these energetic materials – which are essential for the manufacture of weapons and ammunition – are presently served by imports, which are vulnerable to foreign embargoes and other disruptions.
TNT, RDX and propellants can also be used as raw materials for the manufacture of explosives in the commercial sector, such as mining.
“Current world geopolitical developments are causing disruptions in the supply chain where energetic materials are becoming scarce, this of course can disrupt defense and security,” explained Al Yafei. “Therefore, efforts to create self-sufficiency have a very important and strategic value.”
PT Dahana previously inked agreements in 2014 with European companies Roxel and Eurenco to develop and build a propellant plant in Subang, which now produces propellants for a range of small-, medium- and large-calibre weapons.
by Jr Ng