A Big Deal with Penske Australia for Redback Vehicle Engines

STX Engine, a prominent South Korean defense technology company, announced on March 7 that it has signed an 84 billion won supply contract and technology transfer license agreement with Penske Australia. This significant deal involves the supply of diesel engines for Australia's next-generation tracked infantry fighting vehicle, the Redback, marking a pivotal moment in STX Engine's evolution from a technology importer to a global technology exporter.

STX Engine, which first entered the domestic defense industry diesel engine sector in 1977 through a diesel engine overhaul agreement with German Rolls-Royce Solutions, has steadily built its reputation by producing localized engines for military applications. The company has been exporting K9 self-propelled howitzer engines to countries such as India, Poland, Norway, and Türkiye, demonstrating its capability to meet the operational requirements and technical specifications demanded by the international market.

The agreement with Penske Australia is set to run until 2027, during which STX Engine will sequentially supply diesel engines for the Redback armored vehicle. A key component of the deal is the technology transfer package, which includes establishing a local production base in Australia. 

The signing ceremony, attended by Lee Sang-soo, CEO of STX Engine, and key executives from Penske, formalized the cooperation between the two companies. Penske Australia, known for providing mobility solutions across defense, transportation, energy, construction, and mining sectors in Australia and New Zealand, is a strategic partner in this venture.

"As local production and technology transfer are becoming key competitive advantages in the defense market, we will solidify our position as a global technology partner based on this Australian project," stated STX Engine. CEO Lee further emphasized the significance of the collaboration, noting, "This collaboration is an important achievement that demonstrates the international trust in STX Engine's technology." He added, "STX Engine is now transforming from a simple technology cooperation company with overseas original manufacturers to a domestic research and development specialist, making a leap forward."

from Businesskorea