The initiative aims to recover capabilities, increase production, and position the company in global markets
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The Government of Javier Milei launched a national and international public competition at Fabricaciones Militares, aiming to incorporate private investment, modernize its infrastructure, and increase armament production.
This is an unprecedented model in the recent history of the company, aimed at eliminating operational deficits and integrating the Argentine defense industry into global supply chains.
The call, already formalized after completing the corresponding administrative process, aims to select one or more strategic partners to form new joint ventures.
President Javier Milei
These partnerships will be aimed at promoting the expansion, modernization, and development of the various business units of the company, through the contribution of capital, technology, and commercial capabilities from both national and foreign companies.
According to the official documentation, the adopted mechanism will be a National and International Public Competition under a multiple-stage modality, depending on the complexity of the project.
Throughout the process, proposals related to the expansion of industrial capabilities, the optimization of production processes, and the commercial development of the company will be evaluated.
Based on this analysis, the most advantageous offers will be selected to form a Temporary Business Union (UTE) for each awarded business line.
Military manufacturing
The terms of reference, previously approved by the Ministry of Defense, the sole shareholder of the firm, establish the criteria for participation, admission, evaluation, and awarding.
Additionally, it includes a model UTE contract that will regulate the relationship between Fabricaciones Militares and the future strategic partners. Under this figure, the companies will maintain their legal independence while jointly developing specific industrial and commercial projects for a determined period.
The initiative is also supported by the new legal framework of the company, following its transformation into a Sole Shareholder Corporation (SAU). This corporate structure enables the company to enter into commercial agreements and strategic partnerships with greater flexibility, strengthening its ability to compete in the market.
The launch of the competition occurs in a context marked by decades of disinvestment that affected the development of the company.
Military manufacturing
Fabricaciones Militares has gone from having seventeen industrial establishments to currently operating with only four plants, in a scenario characterized by technological obsolescence, production limitations, and a strong need for investment.
In this context, under Milei's Government, the intention to advance in alliances with international defense companies had already been anticipated. The goal is to leverage existing infrastructure, specialized human capital, and the recognition of products such as ammunition, powders, explosives, and chemical materials, to recover strategic industrial capabilities.
The official strategy aims for the new partners to provide financing, technology, and access to external markets, allowing the relaunch of production without sacrificing priority supply to the Argentine Armed Forces in the event of state requirements.
In this way, Milei's Government seeks to transform a company historically harmed by the lack of investment into a competitive player within the defense industrial framework.
