Rheinmetall Denel Munition (RDM) has signed a memorandum of understanding with PT Pindad to produce ammunition ranging from 30 to 105 mm for the Indonesian military as well as export customers.
The agreement was signed in the Indonesia capital Jakarta on August 7, local media reported. The agreement will see RDM and Pindad form a joint venture in 2015 to construct a 168 hectare facility in Malang, East Java, to manufacture ammunition.
The agreement was signed by RDM CEO Norbert Schulze and PT Pindad Director Sudirman Said. Schulze said Pindad was chosen as it has the ability to produce small calibre ammunition. He said the Indonesian company has mostly old machinery but this will be improved through the new partnership.
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