PETALING JAYA: In a move to strengthen global supply chains in the defence sector, SME Ordnance Sdn Bhd (SMEO), a subsidiary company of National Aerospace and Defence Industries Sdn Bhd, and Connecticut, USA-based Colt’s Manufacturing Co LLC have inked a memorandum of understanding (MoU) on joint development and supply of small arms ammunition.
This strategic partnership, forged at DSA Malaysia 2024 and in line with the event's ethos of promoting international collaboration, aims to explore and capitalise on opportunities that will enhance the production and distribution of 5.56mm calibre M193 ammunition.
Under the MoU, SMEO will produce and deliver six million rounds of ammunition annually to Colt over a three-year period. This collaboration, facilitated by the shared objectives and capabilities of both firms, sets a framework for a potential long-term partnership aimed at enhancing supply chain resilience and reliability.
“This will not only enhance our supply chain capabilities but also aligns with our strategic goal to ensure reliable and continuous supply to our global customers,“ said Jens Heider, vice-president global military & law enforcement sales at Colt. “We are excited to leverage SMEO’s manufacturing prowess to meet the growing international demand for high-quality ammunition.”
According to a press statement issued in Kuala Lumpur on Saturday, the MoU also emphasises the non-binding nature of the current understanding, serving as a precursor to more detailed agreements expected to be negotiated in the future. Both parties have agreed to operate under a non-disclosure agreement, ensuring the confidentiality and integrity of their strategic intents. Furthermore, the collaboration is structured to respect and comply with all relevant international laws and regulations, including US export controls and Malaysian legal frameworks.
“This is a pivotal moment for SMEO as we align ourselves with a legendary name in the arms manufacturing sector,“ said SMEO executive chairman General Tan Sri Mohd Shahrom Nordin. “Our joint efforts with Colt will not only expand our capabilities but also place us at the forefront of international defence manufacturing.”