Lockheed Martin (NYSE: LMT) and Arabian International Company for Steel Structures (AIC Steel) have entered into a memorandum of understanding (MOU) to expand localized 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 localization contract already in place. This MOU extends the current partnership between Lockheed Martin and AIC Steel and officially recognizes 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 defense 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 U.S. 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 U.S. jobs and reinforcing the U.S. defense industrial base.”
Localization was a key objective outlined by the Kingdom of Saudi Arabia when it signed an agreement with the U.S. government to procure the THAAD Weapon System in 2017. In 2022, Lockheed Martin and GAMI announced an intent to work together to localize 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 localization 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 defense solutions,” said Mr. Wasim Attieh, president, AIC Steel. “This collaboration not only enhances Saudi Arabia’s strategic defense self‑sufficiency, but also drives technology transfer, creates high‑skill jobs and aligns directly with Vision 2030’s industrial diversification goals.”