FNSS, a joint venture between BAE Systems and Turkey's Nurol Holding, has sealed a $559 million deal with the Malaysian army to provide 8X8 armored wheeled vehicles.

BAE and Nurol said they "received and signed" a letter of offer and acceptance from Deftech of Malaysia for the design, development and manufacture of 257 Deftech AV-8 8x8 wheeled armored vehicles.

The contract includes technology transfer arrangements to Deftech and logistics support for the Malaysian army.

The AV-8, which Deftech will manufacture in Malaysia, is based on the FNSS-designed PARS 8x8 multi-purpose, multi-mission, wheeled armored vehicle.

The AV-8 and its 12 variants will be Malaysia's first indigenous family of 8x8 armored wheeled vehicles.

"This effort will not only benefit the Malaysian army but will also further develop the indigenous capability in Malaysia," John Kelly, vice president of exports and international business for BAE Systems' Land and Armaments sector, said. "BAE Systems actively looks to support FNSS in its ambition to market its land vehicle expertise globally."

Nail Kurt, chief executive of FNSS, said the project "builds on the already successful industrial partnership with Deftech."

FNSS worked with Deftech to deliver 211 Adnan Armored Combat Vehicles and eight 120mm ACV Mortar Carriers to the Malaysian Army under a contract signed in 2000. FNSS also is about to complete the delivery of 48 more Adnan ACVs under a separate contract signed in 2008, an FNSS statement said.

FNSS developed the ACV-300 based on its own version of the M113 armored infantry fighting vehicle, a fully tracked armored personnel carrier that has been widely used by the U.S. Army's mechanized infantry units since the early days of U.S. involvement in the Vietnam war.

Malaysia's version of the ACV-300 -- the Adnan -- is equipped with a KVH TacNav navigation system incorporating global positioning system. They also come with an LWD Avimo laser warning device, Wegmann type 76mm grenade launchers, an NBC filtration system and an ANVVS-2 night vision system.

The Adnan is manufactured at Pekan in Pahang State by Deftech -- DRB-Hicom Defence Technologies, a wholly owned subsidiary of the DRB-Hicom Berhad.

The Adnan is named after Adnan bin Saidi, a Malay lieutenant who fought in the Battle of Singapore during World War II.

Hicom was incorporated in 1980 as the Heavy Industries Corp. of Malaysia Berhad and grew rapidly. In 1996 it merged with Diversified Resources Berhad -- DRB -- to form the biggest conglomerate in Malaysia. DRB-Hicom also manufactures cars, especially makes from Honda and Mercedes-Benz, for the Malaysian market.

BAE Systems Land Systems announced the joint venture FNSS deal with the private-sector Turkish defense business Nurol Holdings in September 2005. BAE Systems holds 49 percent of FNSS which was created for the marketing and supply of wheeled armored vehicles to the Turkish military.