KUALA LUMPUR (Sept 03): Boustead Heavy Industries Corp Bhd (BHIC), the shipbuilding and maritime service arm of Lembaga Tabung Angkatan Tentera, has finalised negotiations with the government to undertake in-service support (ISS) for two of the government’s submarines at €193 million and RM532 million, or RM1.31 billion collectively.

In a filing with Bursa Malaysia today, BHIC said Boustead DCNS Naval Corp Sdn Bhd (BDNC), a 60:40 joint venture consisting BHIC Defence Technologies Sdn Bhd and French-based DCNS SA, had today received the formal contract, which will be effective until Nov 30, 2015, from the government.

The original letter of award for the contract was received on Aug 13, 2010.

“We are pleased to have formalised this contract, on which we have been working for several years. The contract negotiations between BDNC and the government, emphasised on the effective delivery of the ISS and the targeted technical availability of the submarines,” said BHIC’s executive deputy chairman and managing director Tan Sri Ahmad Ramli Mohd Nor, in a media statement.

“It included the transfer of technology and know-how from our partner, DCNS, to our Malaysian personnel, which is crucial to ensure local participation, self-reliance and local content, in accordance with the National Defence Industry Policy,” he added.