Lockheed Martin Signs Agreements with Saudi For Production of THAAD System Components

Defense News ,Saudi :- Lockheed Martin, the U.S. defense contractor, has recently inked contracts enabling Saudi Arabian companies to manufacture components of its Terminal High Altitude Area Defense (THAAD) system. The agreements, totaling 11, were formalized during the Saudi defense exhibition in Riyadh, as announced by Lockheed Martin on Monday.

According to the state news agency, Saudi Arabian Military Industries (SAMI), a state-owned entity, is set to play a significant role in this collaboration. These sub-contracts are poised to bolster manufacturing capabilities within Saudi Arabia, facilitating the transfer of expertise and technology to fortify the nation's defense industry, as highlighted in Lockheed's official statement.

Amid escalating tensions in the region, with shipping companies opting to suspend transit through the Red Sea to avoid potential attacks by Yemen's Iranian-backed Houthi group, the timing of these agreements is crucial. The Houthis have been deploying exploding drones and missiles at vessels since November, reacting to Israel's military operations in Gaza.

Despite the geopolitical challenges, the Biden administration has reaffirmed its support for Saudi Arabia to receive the THAAD system, initially approved in 2017 to counter ballistic missile threats. Lockheed Martin's prime partners in these sub-contracts include Middle East Propulsion Company (MEPC) and Arabian International Company (AIC) for Steel.

In a parallel development, Boeing Saudi Arabia and Bahri Logistics, a subsidiary of the national shipping company, have entered into a strategic Memorandum of Understanding (MoU). This agreement aims to amplify supply chain activities in Saudi Arabia while enhancing Bahri's support for services and defense-related products. The partnerships reflect a broader effort to strengthen regional defense capabilities and foster economic collaboration.