Retired Brigadier General Joseph “Joe” Rank, CEO of Lockheed Martin Saudi Arabia, revealed that the Kingdom’s participation in the American company’s supply chains has quadrupled over the past year, in a development that reflects the growing role of Saudi defense industries in the global manufacturing system, and the move from meeting local needs to participating in the production of components that are part of international defense systems.
In an interview with Asharq Al-Awsat on the sidelines of the General Authority for Military Industries Forum held in Riyadh, Rank explained that Saudi Arabia has become one of the few countries in the Middle East to join the global supply chains of Lockheed Martin, indicating that its participation is witnessing rapid expansion, as part of efforts aimed at strengthening local industrial capabilities and raising its competitiveness at the international level.
He said, “The goal is no longer limited to manufacturing products to meet the needs of the Kingdom, but rather goes beyond that to integrate Saudi industries into the company’s global supply chains,” stressing that this trend would provide new job opportunities, generate revenues for the Saudi economy, and enhance the Kingdom’s position on the map of global defense industries.
Rank pointed out that the industrial relationship between Lockheed Martin and Saudi Arabia has witnessed a fundamental transformation in recent years, after it was previously focused on supplying defense systems and equipment, to now include manufacturing major components within the Kingdom, in addition to carrying out maintenance and technical support work locally.
He added: “In the past, we were limited to selling products to the Kingdom, but today we manufacture products inside it and carry out maintenance work there as well, and in the future we will move beyond this stage to broader horizons.”
He stressed that the Kingdom represents the company's most important partner in the Middle East region, pointing out that cooperation with the Ministry of Defense and the General Authority for Military Industries constitutes an essential foundation for expanding industrial investments and transferring advanced defense technologies.
The CEO of Lockheed Martin Saudi Arabia reviewed a number of projects that reflect the progress of local defense manufacturing, most notably the production of major components of the THAAD anti-ballistic missile defense system.
He explained that the company is working with Saudi industrial partners to manufacture components for this system inside the Kingdom, including parts of the launch pad at AIC Steel in Jeddah, and missile containers at the Middle East Aircraft Engines Company in Riyadh.
He pointed out that the THAAD system represents one of the main defense systems used to confront missile threats, including threats coming from Yemen or Iran, stressing that the localization of the manufacturing of its components reflects the development of Saudi industrial capabilities in the defense sector.
Rank stressed that the company's strategy in Saudi Arabia is not limited to transferring manufacturing operations, but also includes transferring technology and technical knowledge, and training national cadres on dealing with advanced defense systems.
He said that developing human capital represents one of the most important elements of the success of the localization process of military industries, explaining that possessing modern technologies does not achieve the desired value unless qualified competencies are available to operate and develop them.
He added: “You can have the greatest technology in the world, but if you do not have the people who can use it, it is useless.”
Rank pointed out that the company's participation in the General Authority for Military Industries Forum for the second year in a row, as a gold sponsor, reflects the importance of the Saudi market within Lockheed Martin's regional strategy.
This expansion comes at a time when Saudi Arabia aims, within “Vision 2030,” to localize more than 50 percent of its spending on military equipment and services, by building a national industrial system that includes manufacturing, maintenance, research and development, and knowledge transfer.
The CEO of Lockheed Martin Saudi Arabia mentioned during his speech at the Military Industries Forum that the F-35 aircraft deal had passed the notification stage to the US Congress, which he described as important.
He said that Lockheed Martin's relationship with Saudi Arabia extends to 60 years, and it began with the delivery of C-130 aircraft, before moving from selling products to local manufacturing and supporting maintenance and sustainability capabilities.
