Boeing, Saudi Arabian Military Industries To Develop JV

(RTTNews) - Saudi Arabian Military Industries and Boeing (BA) signed a Memorandum of Agreement to develop a new joint venture. The agreement will provide sustainment services for fixed- and rotary-wing military aircraft of the Kingdom's defense services, and will be the sole provider of these ?services for all military aviation platforms of ?the KSA military fleet. The JV will also increase the localization of Maintenance, Repair and Overhaul services.

Royal Embassy of Saudi Arabia said, with revenues to exceed $22 billion, the agreement will create 6,000 jobs and training opportunities for Saudi youth, support local development, and augment the participation of Saudi nationals in the industry, contributing towards the objectives of the Kingdom's comprehensive Vision 2030 plan. The investment value will reach $450 million in facilities and equipment inside the Kingdom.

The agreement was signed by Ahmed Al-Khateeb, Chairman of SAMI, and Dennis Muilenburg, CEO of Boeing, at the company's headquarters in Seattle. The joint venture will provide a foundation for future platform sales and for expanding Boeing's presence in the Kingdom to support market growth in both the commercial and defense sectors.