Lockheed Martin in conjunction with AIC Steel and MEPC are to expand THAAD components and cannister production in Saudi Arabia.
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News Release, Riyadh, 12 February 2026: Lockheed Martin and Arabian International Company for Steel Structures (AIC Steel) have entered into a memorandum of understanding (MoU) to expand localised production of components for the Terminal High Altitude Area Defense (THAAD) Weapon System, specifically the missile round pallet-transportable (MRP-T) units.
Under the agreement, the companies will explore increased production of the MRP-T units, expanding a localisation contract already in place. This MoU extends the current partnership between Lockheed Martin and AIC Steel and officially recognises AIC Steel as a qualified Lockheed Martin supplier. Lockheed Martin officially announced its partnership with AIC Steel at the 2024 World Defense Show. In 2025, the two companies celebrated a major second-source production milestone for AIC Steel.
“The global demand for proven air and missile defence systems highlights the need to secure a robust and global supply chain base,” said Jason Reynolds, vice president of Integrated Air and Missile Defense at Lockheed Martin. “This MoU paves the way for increased THAAD hardware production in Saudi Arabia and deepens Lockheed Martin’s role in helping secure a trusted US ally against ballistic-missile threats. Our partnership with AIC Steel is part of a broader initiative designed to cultivate local talent, accelerate the transfer of advanced technical knowledge while simultaneously supporting US jobs and reinforcing the US defence industrial base.”
Localisation was a key objective outlined by the Kingdom of Saudi Arabia when it signed an agreement with the US government to procure the THAAD Weapon System in 2017. In 2022, Lockheed Martin and GAMI announced an intent to work together to localise work on the THAAD Weapon System in Saudi Arabia. This most recent agreement deepens Lockheed Martin’s relationship with AIC Steel and drives additional THAAD localisation projects, aligning with Saudi Vision 2030. The combat-proven THAAD Weapon System offers regional deterrence and proven capability against a range of ballistic-missile threats.
“Partnering with Lockheed Martin to scale up production of the MRP-T units reinforces AIC Steel’s commitment to delivering world class, locally manufactured defence solutions,” said Mr. Wasim Attieh, president, AIC Steel. “This collaboration not only enhances Saudi Arabia’s strategic defence self sufficiency, but also drives technology transfer, creates high skill jobs and aligns directly with Vision 2030’s industrial diversification goals.”
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News Release, Riyadh, 12 February 2026: Lockheed Martin and Middle East Propulsion Co. (MEPC) have entered into a non-binding memorandum of understanding (MoU) to expand localised production of Terminal High Altitude Areas Defense (THAAD) interceptor canisters in Saudi Arabia.
Under the agreement, the companies will explore increased production of THAAD canisters, expanding a localisation contract already in place. This MoU extends the current partnership between Lockheed Martin and MEPC and officially recognises MEPC as a qualified Lockheed Martin supplier.
“This MoU paves the way to increase localised production of THAAD canisters and expands Lockheed Martin’s global supply chain base,” said Jason Reynolds, vice president of Integrated Air and Missile Defense at Lockheed Martin. “Recent events have highlighted the need for proven air and missile defence systems worldwide, and this agreement deepens Lockheed Martin’s role in helping secure the region from ballistic-missile threats. This partnership with MEPC is part of a broader initiative designed to cultivate local talent, accelerate the transfer of advanced technical knowledge while also bolstering US jobs and fortifying the US defence industrial base.”
Lockheed Martin announced MEPC as a subcontractor for second source through the culmination of the follow milestones:
- 2022: GAMI, Lockheed Martin join forces to localise work on THAAD missile defence system in Saudi Arabia
- 2024: Lockheed Martin awards localisation subcontracts for THAAD Weapon System in the Kingdom of Saudi Arabia
- 2025: MEPC earns second-source qualification status with Lockheed Martin
Localisation was a key objective outlined by Saudi Arabia when it signed an agreement with the US government to procure the THAAD Weapon System in 2017. This agreement deepens Lockheed Martin’s relationship with MEPC and drives additional THAAD localisation projects, aligning with Saudi Vision 2030. The combat-proven THAAD Weapon System offers regional deterrence and proven capability against a range of ballistic-missile threats.
“We are proud to deepen our partnership with Lockheed Martin through recognition as a second-source supplier for THAAD interceptor canisters that bolster the kingdom’s defence capabilities,” said Mohammed Al-Nowkhani, Chief Executive Officer, MEPC. “This collaboration aligns directly with Saudi Vision 2030’s goals of industrial diversification and technology transfer, and it underscores our commitment to delivering world-class aerospace solutions while creating high-value jobs for Saudi talent.”
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