TSAMTO, February 15th. During the World Defense Show 2024 (WDS-2024) in Riyadh, Lockheed Martin Corporation announced the conclusion of subcontracting contracts for the localization of production in Saudi Arabia of some systems for the THAAD missile defense system.
According to a press release from the American company, in accordance with the production localization agreement between the Kingdom of Saudi Arabia and Lockheed Martin, two key subcontracts have been concluded with Saudi industrial enterprises for the production as a second supplier of some components for THAAD (Terminal High Altitude Area Defense) missile defense systems.
In particular, the contracts support the implementation of projects approved by the General Directorate of Military Industry of Saudi Arabia (GAMI), which were announced during the World Defense Show 2022. The first project provides for the production of containers for the placement of interceptor missiles, the second - the production of launch pallets.
The main partners who received subcontracts were the Middle East Propulsion Company (MEPC), based in Riyadh and specializing in aerospace technologies, as well as the Arabian International Company (AIC) from Jeddah, which specializes in steel production. A number of other Lockheed Martin industrial partners in Saudi Arabia have also received subcontracts.
As previously reported by CAMTO, in October 2017, the US State Department approved the supply of THAAD missile defense systems, related support services and equipment to Saudi Arabia as part of the Foreign Military Sales program. The total value of the contract may amount to $15 billion. The Saudi government's request included the sale of 44 THAAD launchers, 360 THAAD interceptor missiles, 16 THAAD mobile tactical fire control and communications stations, 7 AN/TPY-2 radars, as well as other equipment, military equipment and services.
The US Missile Defense Agency signed a contract with Lockheed Martin worth $945.9 million for the implementation of the first phase of the program for the supply of THAAD systems to Saudi Arabia in March 2019 as part of the Foreign Military Sales program. The latest contract, providing for the purchase of interceptor missiles and related equipment, was signed on March 31, 2022. After the signing of this agreement, the total value of the signed contracts for the project increased to $7.761 billion.
The delivery of THAAD complexes will provide the upper level of Saudi Arabia's layered missile defense system. THAAD interceptor missiles are equipped with a kinetic warhead that ensures the defeat of a target by direct hit (hit-to-kill). They allow the interception of ballistic missiles, both in outer space and in the atmosphere. The complex can interact with other elements of a layered missile defense system, perform tasks in conjunction with the Patriot PAC-3, Aegis air defense systems, forward-based detection equipment and the C2BMC combat control, Control and Communications system (Command, Control, Battle Management, and Communications).
The United States plans to complete the construction of positional sites in Saudi Arabia to accommodate the first four batteries of the THAAD complex by the end of 2026, and all seven by April 2028. The key condition for the purchase of THAAD is the localization of part of the work in the Kingdom, which corresponds to the priorities set out in the government's Vision 2030 initiative, which provides for an increase in purchases of military equipment produced by the national military-industrial complex.