Lockheed Martin boosts Saudi Arabia's defense industry with THAAD localization subcontracts.

Lockheed Martin has granted two crucial subcontracts to entities within the Kingdom of Saudi Arabia as part of a Localization Agreement between the Kingdom and Lockheed Martin, aimed at establishing an alternative source for specific components within the Terminal High Altitude Area Defense (THAAD) Weapon System. These subcontracts represent a significant step towards realizing the objectives outlined by the General Authority for Military Industries (GAMI) during the 2022 World Defense Show, which involve localizing the production of the THAAD interceptor canister and THAAD Missile Round Pallet within Saudi Arabia.
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THAAD Terminal High Altitude Area Defense system (Picture source: Lockheed Martin)

These subcontract agreements are poised to bolster the Kingdom's manufacturing capabilities and facilitate the transfer of expertise, ultimately fortifying the nation's defense industry. Among the prime partners receiving these subcontracts are the Middle East Propulsion Company (MEPC), headquartered in Riyadh, and Arabian International Company (AIC) for Steel, located in Jeddah. Several other Saudi industry partners have also been included in this initiative, further advancing the localization efforts.

A fundamental requirement in the THAAD procurement process is the localization of work within the Kingdom. This aligns seamlessly with the objectives set forth in Saudi Vision 2030, aimed at fostering the growth and localization of military industries within Saudi Arabia. The Kingdom stands to reap the benefits of these strategies through strategic international defense partnerships with Lockheed Martin and other leading original equipment manufacturers, creating mutually advantageous outcomes for all stakeholders involved.

Joseph Rank, Chief Executive for Lockheed Martin in Saudi Arabia and Africa, expressed his satisfaction with the progress of localization efforts, stating, "Our localization 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. 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 localize defense systems and contribute to the country's development goals under Saudi Vision 2030."

Defense News February 2024