EXPONAVAL 2024 | Asian companies seek to expand markets in Latin America

With just over a quarter of a century of existence, Exponaval is well established as the largest fair of its kind in Latin America, featuring traditional defense companies from the United States, Canada, and Europe, which are the main suppliers to the region’s armed forces, such as Lockheed Martin, Naval Group, Navantia, and BAE Systems.

However, the novelty in this edition is the notable presence of Asian companies, which are seeking new markets on these shores of the Indo-Pacific, demonstrating that the center of gravity in the world is shifting in all areas.

Although Turkey has part of its territory in Europe, 97% of the country is located in Asia, where the majority of the population resides. Therefore, it is hardly listed among the Western arms suppliers.

The stand of the Turkish company Aselsan, which has just opened its subsidiary for Latin America in Chile, impresses with its size, but also with the display of the ships it has built for its country’s navy under the ‘Milgem’ program (national ship), which includes everything from submarines to what is said to be the world’s first drone carrier. With annual revenues of $2.5 billion globally, the company ranks 42nd in the world, according to statistics from the International Institute for Strategic Studies. Currently, among its main projects in the region is the modernization of the Leopard 2 tanks of the Chilean Army.

As explained by its manager for Latin America in a panel discussion, Aras Balli, the company founded in 1975 was inspired by the motto of the founder of modern Turkey, Mustafa Kemal Atatürk, who said, ‘peace at home, peace in the world.’ This means that the first objective was to supply the national armed forces, and once that was achieved, they began to export their products, such as corvettes that they now sell.

Another country that also dazzles with the magnitude of its exhibition hall is India, where Mazagon shipyards showcase examples of their most ambitious projects, the Kolkata-class stealth destroyers and the Scorpene-class submarines, the same ones operated by the Chilean navy. Bharat Electronics, ranked 57th among the top 100 defense companies in the world, more modestly displays its fire control radars. As a company executive states, this is their first time in Chile, and their goal is to open new markets, as they currently have no clients in the area yet.

It is also possible to find a small representation of Hanwha Systems from South Korea, which provides combat systems for vessels. And although it is an American ship design company, Leidos showcases its great success in the selection of the 110M International-class frigate model for the Taiwanese Navy, because just as Asians are arms sellers, they also buy them in large quantities.

Undoubtedly, companies from the other side of the Indo-Pacific have a long way to go to establish themselves in Latin America, where they have not yet made a strong entry into the defense field. Perhaps Peru is making the most progress in this regard, thanks to agreements signed by its Navy with Hyundai Heavy Industries to build frigates, patrol vessels, and logistical ships. In other words, a market at least exists.  

AthenaLab Team
December 4, 2024