Indonesia’s PT Dahana signed a Memorandum of Understanding (MoU) with Edge Group’s subsidiary Lahab Defense Systems in early November for a possible joint venture to establish a TNT plant at the Dahana Energetic Materials Center (EMC) area in Subang.
The MOU also calls for cooperation in the production of a variety of explosives, leveraging the existing capabilities of the two companies.
Arafat Al Yafei, CEO of Lahab, said: “The agreement between Lahab and Dahana is a perfect example of two highly specialized companies coming together to explore joint synergies and opportunities that will allow us to enhance our personal and sovereign capabilities through partnership .”
“By leveraging these unique strengths, we are able to play a strategic role in strengthening the economic and security relationship between our two countries, while advancing technology and, ultimately, delivering superior services and solutions to our defense and commercial customers. scheme industry while minimizing potential disruption,” he added.
According to Lahab, the two companies will also establish a joint technical team to develop a roadmap and identify ways to advance Indonesia’s existing infrastructure, as well as potential joint production of propellants and RDX. Indonesia’s domestic demand for these high-energy materials essential to the manufacture of weapons and ammunition is currently met by imports, which are vulnerable to foreign embargoes and other disruptions.
TNT, RDX, and propellants are also used as raw materials in the manufacture of explosives, which are used in commercial applications such as mining.
“Current geopolitical developments in the world are causing supply chain disruptions where energetic materials become scarce, which of course undermines defense and security,” Al Yafei explained. “Therefore, there is very important strategic value in trying to create self-sufficiency.”
PT Dahana previously signed an agreement with European companies Roxel and Eurenco in 2014 to develop and build a propellant plant in Subang, which now produces propellant for a range of small, medium and large caliber weapons.
by Jr Ng