Saudi Arabian Military Industries (SAMI) said it has acquired a majority stake in Aircraft Accessories & Components Company (AACC) - a Saudi entity of the Economic Offset Program, as part of its ongoing efforts to develop a sustainable domestic defence sector in the kingdom.
AACC is a specialist in the maintenance, repair and overhaul (MRO) for aircraft hydraulics and secondary power systems (SPS) for multiple platforms.
Following the acquisition by SAMI, the scope of operations of AACC will be expanded to include repairing and maintaining civil aircraft landing gear and increasing non-destructive testing (NDT) and helicopter maintenance capabilities, among other services, said a statement from the company.
According to Sami, the acquisition will enable the company to expand its services to the Middle East and North Africa (Mena) markets.
"Acquiring a majority stake in AACC is a key factor in the strategic development of SAMI," remarked its CEO Dr Andreas Schwer.
"The MRO market promises tremendous opportunities for us. All the necessary tools are already in place, and in the near future, we will add MRO for landing gear to AACC’s services," he noted.
Dr Mansour Al Eid, the chief executive of AACC, said the company's acquisition by SAMI is an important step in the development of AACC, which will allow the company to expand the scope of its services, invest in local talent, reach new markets, and develop its capabilities to better serve its customers, as well as invest in manufacturing spare parts for aircraft.
"The aviation industry in Saudi Arabia is booming in conjunction with the establishment of SAMI and the General Authority for Military Industries (GAMI)," he stated.
"They will both contribute to the localisation of military industries, invest in building local capabilities, create jobs for Saudi citizens, and join efforts with national companies to achieve the objectives of the Saudi Vision 2030," he added.
The Royal Saudi Air Force has recently agreed to a contract with AACC to overhaul and purchase landing gear for Multi-Role Tanker Transport (MRTT) aircraft.
AACC currently overhauls landing gear for military aircraft and is cooperating with Safran Landing Systems, the world’s leader in aircraft landing and braking systems, to develop the capability to overhaul landing gear for civil aircraft in the Gulf and Mena regions. This cooperation will serve as the cornerstone for establishing the new capability, opening up those markets for the company.
Since its inception in mid-2017, SAMI’s mandate has advanced across aeronautics, land systems including military vehicles, defence electronics including naval systems, and weapons and missiles. To help achieve the mandate, AACC will become part of SAMI’s Aeronautics division planned in Jeddah.
Working under the directives outlined in the Saudi Vision 2030 blueprint, SAMI is playing a key role in localising the total government military spending in the kingdom, aiming at increasing domestic procurement to 50 per cent by the year 2030, with the long-term objective of being among the top 25 military industry companies in the world by that year, it stated. – TradeArabia News Service