29 December 2016

News Story: Japan seeks to win Thai air defense radar contract - sources

Image: Wiki Commons
By Tim Kelly and Nobuhiro Kubo

Japan is seeking to win a contract to supply Thailand with an air defense radar system built by Mitsubishi Electric Corp, as it looks to counter growing Chinese influence in the Southeast Asian nation, according to four Japanese government officials and one industry source.

The effort is part of a wider push by Prime Minister Shinzo Abe's administration to bolster its position in the region along with its U.S. ally. The Chief of Staff of Japan's Air Self Defense Force, Yoshiyuki Sugiyama, traveled to Bangkok last month to discuss areas of possible cooperation.

Japan expects the Thai military government to begin accepting competitive bids as early as next year as it upgrades and adds to its existing U.S. and European radar systems, the sources said. It is unclear who else may be bidding.

The value of such a contract is unclear as the specifications for the system have not yet been released. Radar systems built by Mitsubishi and other companies for Japan can stretch to hundreds of millions of dollars depending on the complexity and coverage. The sources said Japan would look to offer a lower price system because of Thailand's limited defense budget.

Japan's push for stronger ties with Thailand, will benefit the U.S. given the growing tensions over China’s claims in the South China Sea, according to the sources. Japan, which until 2014 had a ban on arms exports, has not previously sold military equipment to Thailand.

Read the full story at Reuters