TOKYO: French defence contractor Thales will establish a maintenance and operational support base in Japan in what is seen as the first such move by a foreign firm in the country, a report said Monday.
Chairman and CEO Patrice Caine told the Nikkei business daily that the base "will mark a milestone toward Thales's long-term engagement in Japan".
It is believed to be the first time a foreign defence company has established a dedicated base in Japan for the maintenance and operation of Japanese defence equipment, the Nikkei said.
It added that Thales may also expand its Japan-based business to civilian use in the future.
The report comes as Prime Minister Sanae Takaichi boosts defence spending in the face of China's rapid military expansion and an unpredictable North Korea, moving away from the traditional pacifist stance that limited the use of force to self-defence.
Thales already supplies equipment to Japan's Self-Defense Forces, the Nikkei said.
Caine cited technologies such as radar and sonar as possible areas to share with Japan, saying that he hoped to "provide support in areas where Thales has an advantage in terms of performance".
Thales will transfer its technology to partner Japan Steel Works and production of the 2R2M heavy mortar system will begin in Japan from next year, the Nikkei said.