Localisation is the aim of the game in defence procurement
Hungary received its first locally built KF41 Lynx in 2024. (Photo: Rheinmetall)
Defence buyers globally are increasingly looking to tie domestic manufacturing and technology transfer into deals.
A growing trend in defence procurement is the desire of governments to localise as much of the production process as possible. In the past, local production was treated as an optional extra; nice to have but not essential. Now it is increasingly becoming crucial in order for a deal to be agreed.
This can be seen in Europe, where multiple governments have insisted on local production as a condition of a sale. Hungary has been at the forefront of the shifting focus, signing deals with both Rheinmetall and Nurol Makina to localise production of the KF41 Lynx and Ejder Yalcin,
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