Lockheed Martin Teams Up with Arabian International for Enhanced THAAD Component Production in Saudi Arabia
RIYADH, Saudi Arabia, Feb. 12, 2026 — Lockheed Martin (NYSE: LMT) and Arabian International Company for Steel Structures (AIC Steel) have announced a significant milestone with a memorandum of understanding (MOU) aimed at enhancing the localized production of essential components for the Terminal High Altitude Area Defense (THAAD) Weapon System. This initiative specifically focuses on missile round pallet-transportable (MRP-T) units.
This collaboration will involve an exploration of increased production capabilities for the MRP-T units, building upon an already established localization contract. The MOU extends the fruitful partnership between Lockheed Martin and AIC Steel, officially recognizing AIC Steel as a trusted supplier. The partnership was initially unveiled during the 2024 World Defense Show, and in 2025, both companies reached a significant production milestone for AIC Steel.
“The rising global demand for reliable air and missile defense systems underscores the necessity for a robust, international supply chain,” stated Jason Reynolds, vice president of Integrated Air and Missile Defense at Lockheed Martin. “This MOU paves the way for increased production of THAAD hardware in Saudi Arabia, enhancing Lockheed Martin’s role in safeguarding a primary U.S. ally from ballistic missile threats. Our collaboration with AIC Steel is part of a comprehensive initiative aimed at building local expertise and accelerating the transfer of advanced technical knowledge, while also reinforcing job creation in the U.S. defense industrial base.”
Localization is a crucial element highlighted by the Kingdom of Saudi Arabia following its 2017 agreement with the U.S. government for procuring the THAAD Weapon System. In 2022, Lockheed Martin and GAMI set forth their intent to collaborate on the localization of THAAD work within Saudi Arabia. The latest agreement strengthens Lockheed Martin’s relationship with AIC Steel, further advancing THAAD localization projects and aligning with the ambitious goals of Saudi Vision 2030. The THAAD Weapon System offers essential regional deterrence and proven capabilities against various ballistic missile threats.
“Teaming up with Lockheed Martin to boost production of the MRP-T units underscores AIC Steel’s dedication to providing top-tier, locally manufactured defense solutions,” remarked Mr. Wasim Attieh, president of AIC Steel. “This partnership not only enhances Saudi Arabia’s strategic defense autonomy but also facilitates technology transfer, generates high-skilled job opportunities, and supports the industrial diversification goals outlined in Vision 2030.”
