Riyadh – Mubasher: Texas-based Lockheed Martin will receive the first payment tranche from Saudi Arabia for installing Terminal High Altitude Area Defence (THAAD) system in the kingdom, the US Department of Defense (Pentagon) reported.
The tenure of the contract extends from 28 February until 31 October 2026, according to a statement.
Lockheed Martin has been initially awarded around $946 million to implement the deal, the Pentagon’s statement added.
In November 2018, top Saudi and US officials signed the letters of offer and acceptance for the kingdom to buy 44 of THAAD launchers, missiles and other required equipment.
“The undefinitised contract action” is a partial payment that will see Lockheed Martin also provide tooling and test equipment, key personnel, line requalification activities, initial training development and maintenance,” the US body’s statement concluded.
THAAD system deal is part of the major arms agreement between the two parties signed during 2017.
In November 2017, Steve O’Bryan, Lockheed Maritn’s vice president of International Strategy and Business Development, said that the firm would produce more than 150 Black Hawk Helicopters for Saudi Arabia.
Saudi Specialized Products Co. (Wahaj), which is a unit of Saudi International Petrochemical Company (Sipchem), inked in February 2018 a collaboration agreement with Lockheed Martin to co-manufacture the Air Foil Group (tailkits) for Paveway II Plus Laser Guided Bombs (LGBs) in Saudi Arabia.
