NCL partners with Indra Sistemas S.A. to secure a contract with the Royal Thai Navy, benefiting from rising defense budgets.

NCL, through its subsidiary "Golden Supply," has partnered with Spanish giant "Indra Sistemas S.A." to secure a 122 million baht project for the procurement and installation of an air surveillance radar system for the Royal Thai Navy. The project will take two years to complete. This move reflects the growing trend in the defense industry, driven by geopolitical tensions and continuously increasing defense budgets.

On April 24, 2016, Mr. Pongthep Wichaikul, Chief Executive Officer of NCL International Logistics Public Company Limited ( NCL), revealed that Golden Supply Company Limited (GDS), a wholly-owned subsidiary, had signed a contract with Indra Sistemas, SA (INDRA), a company registered in the Kingdom of Spain, for the procurement and installation of one fixed air surveillance radar system. INDRA will work in conjunction with the Naval Electronics Department, Royal Thai Navy, on this project. The total contract value is 121.95 million baht.

The contract details include: a project consultant contract for a period of 2 years; a supply of goods and services contract for a period of 2 years; and a maintenance agreement for a continuous period of 6 years.

Indra Sistemas, SA (INDRA) has signed a contract with the Royal Thai Navy worth a total of 699 million baht. Of this project value, Indra Sistemas, SA (INDRA) has contracted Golden Supply Co., Ltd. for 121.95 million baht to provide project consulting, services, supply, and maintenance services.

This project is a new business in the defense sector, which the company is confident will support the group's growth in the next phase. This is because the defense industry is expected to continue expanding due to geopolitical uncertainties, leading many countries to increase their security budgets. Global military budgets are projected to grow at an average rate of approximately 2.5% compared to 2567.

In Thailand, the Ministry of Defence budget (excluding secret service expenses) is projected to increase from 199,721 million baht in fiscal year 2568 to 204,434 million baht in fiscal year 2569, a 2.4% increase. This reflects the growing demand for the procurement, maintenance, and support of defense systems, a positive factor supporting the company's long-term business opportunities in this industry. The collaboration with a leading Spanish company creates new revenue streams for the group and reflects its potential to expand into high-value-added services.

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