Lockheed Martin arming Saudis with high-tech skills

Alan Chinoda, chief executive of Lockheed Martin Saudi Arabia. (AN photo)
Updated 14 December 2017
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Lockheed Martin arming Saudis with high-tech skills

DUBAI: Lockheed Martin, the world’s largest arms manufacturer, will dedicate more than 1 million hours to training Saudi men and women, a top company official has confirmed.
Sikorsky, a Lockheed Martin Company, in February 2016 signed an agreement to establish a joint venture with TAQNIA Aeronautics for helicopter production in Saudi Arabia.
The agreement outlined the investment, technology and skills needed to establish an assembly line to produce Sikorsky S-70 Black Hawk helicopters in Saudi Arabia.
“This would be Black Hawk helicopters produced by Saudis for Saudi Arabia; we plan to invest more than a million hours in this endeavor,” said Alan Chinoda, chief executive of Lockheed Martin Saudi Arabia.
“If you look at the future we are well invested in building human capital (in Saudi Arabia),” Chinoda said.
“We have a number of multi-collaborative efforts that we are working on with KACST (King Abdul Aziz City for Science and Technology), KAUST (King Abdullah University of Science and Technology) and ... the Mohammed bin Salman College of Business and Entrepreneurship, which started its MBA program this September.”
Lockheed Martin has been working with Saudi Arabia since 1965 with the delivery of the Kingdom’s first C-130 Hercules airlifter.

According to TAQNIA Aeronautics, the S-70 Blackhawks will be marketed to members of the Islamic Alliance as well as Saudi companies.
TAQNIA Aeronautics focuses on the transfer of technology in the aerospace industry, and aims to boost high-skilled production jobs for Saudi citizens and increase the localization of defense sector expenditure.
 


Harley-Davidson to move some production out of US to avoid EU tariffs

Updated 14 min 53 sec ago
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Harley-Davidson to move some production out of US to avoid EU tariffs

  • The shift in production is an unintended consequence of Trump’s administration imposing tariffs on European steel and aluminum
  • In response to US tariffs, the EU began charging import duties of 25 percent on a range of US products

Harley-Davidson Inc. said on Monday it would move production of motorcycles shipped to the European Union from the United States to its international facilities and forecast the trading bloc’s retaliatory tariffs would cost the company $90 million to $100 million a year.
The shift in production is an unintended consequence of US President Donald Trump’s administration imposing tariffs on European steel and aluminum early this month, a move designed to protect US jobs.
In response to the US tariffs, the European Union began charging import duties of 25 percent on a range of US products including big motorcycles like Harley’s on June 22.
In a regulatory filing https://bit.ly/2tA1ru0 on Monday, the Milwaukee, Wisconsin-based company said the retaliatory duties would result in an incremental cost of about $2,200 per average motorcycle exported from the United States to the European Union, but it would not raise retail or wholesale prices for its dealers to cover the costs of the tariffs.
The company expects the tariffs to result in incremental costs of $30 million to $45 million for the rest of 2018, the filing said.
“Harley-Davidson believes the tremendous cost increase, if passed onto its dealers and retail customers, would have an immediate and lasting detrimental impact to its business in the region,” the company said.
Struggling to overcome a slump in US demand, Harley has been aiming to boost sales of its iconic motorcycles overseas to 50 percent of total annual volume from about 43 percent currently.
In January, the company announced the closure of a plant in Kansas City, Missouri as part of a consolidation plan after its motorcycle shipments fell to their lowest level in six years.
In 2017, Harley sold nearly 40,000 new motorcycles in Europe which accounted for more than 16 percent of the company’s sales last year. The revenues from EU countries were second only to the United States.
Harley said ramping-up production at its overseas international plants will require incremental investments and could take at least nine to 18 months.
The company will provide more details of the financial implications of retaliatory EU tariffs and plans to offset their impact on July 24 when its second-quarter earnings are due, the filing said.
Trump vowed to make the iconic motorcycle maker great again when he took office last year.
In late April, Harley said Trump’s metal tariffs would inflate its costs by an additional $15 million to $20 million this year on top of already rising raw material prices that it expected at the start of the year.