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The Kingdom of Saudi Arabia’s domestic defence localisation program has officially borne fruit with American defence prime Lockheed Martin selecting two local companies to supply components for its THAAD weapon system.
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Middle East Propulsion Company, based in Riyadh, and Arabian International Company for Steel Structures, based in Jeddah, have been awarded key subcontracts for components used in the Terminal High Altitude Area Defense (THAAD) Weapon System, according to a company statement published in February.
Saudi Arabia has been pushing to end its reliance on international defence agreements after announcing a new Saudi Vision 2030 strategy. The strategy aims to develop and localise military industries domestically.
“Our localisation efforts in the Kingdom are progressing, and we’re very proud to see that MEPC, AIC Steel and other Saudi partners are now ready to engage in manufacturing and supporting key components of the THAAD Weapon System. It’s a significant milestone,” according to Joseph Rank, Lockheed Martin Saudi Arabia and Africa chief executive.
“Our mission is to help improve regional security while supporting job creation and economic prosperity, and we’re very proud to be working with our partners in the Kingdom to localise defence systems and contribute to the country’s development goals under Saudi Vision 2030.”
The contract awards support the project approvals announced by the General Authority for Military Industries during the 2022 World Defense Show to localise the manufacture of THAAD interceptor canister and THAAD Missile Round Pallet in Saudi Arabia.
The subcontracts are expected to enhance manufacturing capabilities in the Kingdom and transfer expertise to strengthen the country’s defence industry. A number of other Saudi industry partners have also received subcontracts in support of these efforts.
In addition, Saudi Arabia is expected to benefit through qualitative international defence partnerships with Lockheed Martin and other major original equipment manufacturers, with shared benefits for stakeholders.
Earlier this week, international defence, security and aerospace company Leonardo signed a memorandum of understanding with the Kingdom of Saudi Arabia. Leonardo, partially owned by the Italian government, and Saudi Arabia will collaborate in areas of aerospace and defence, according to a statement released by the company on 5 February.
It also covers Leonardo’s capabilities on space, rotorcraft, electronics and sensors, combat air, cross-domain integration, uncrewed systems, digital technologies, industrialisation and services under the agreement signed by the Ministry of Investment (MISA) and the General Authority for Military Industries (GAMI) and announced during an official ceremony at World Defense Show in Riyadh.
In addition, late last year, the state-owned defence company Saudi Arabian Military Industries signed a memorandum of understanding with Brazilian multinational aerospace corporation Embraer to establish cooperation in aerospace, defence, and security industries.
The agreement, a first step in the collaboration of the two countries’ aerospace industry, is expected to expand the operational footprint of both companies in the Kingdom of Saudi Arabia and promote C-390 Millennium military transport aircraft to the Kingdom’s Ministry of Defense.
SAMI and Embraer will work to establish comprehensive maintenance capability for the Embraer aircraft in Saudi Arabia, as well as explore mission system integration, a regional maintenance, repair, and overhaul hub and a final assembly line for the Embraer C-390 in Saudi Arabia.
