RIYADH, 8 February — BAE Systems has launched a major initiative under which its engineering works will be handled by Saudi companies, beginning with the propeller repair for PC-9 aircraft carried out in Jeddah by Aircraft Accessories and Components Companies, an economic offset program company. Previously, such works were carried out in Britain.
The move is deemed significant as it is expected to transfer to the Kingdom engineering works worth several hundred million riyals annually for the benefit of the local companies.
One of the provisions of the Saudi Economic Offset Committee under the Ministry of Defense and Aviation calls for an increase in British investment in the Kingdom to the extent of 30 percent of the value of the contracts awarded under the Al-Yamamah offset program.
BAE Systems has appointed Abdulhai Al-Bassri, a Saudi engineering specialist, as director of the Al-Yamamah Project team.
"BAE, which has been present in the Kingdom for nearly 30 years, has made a commitment in terms of purchasing more goods and services from local suppliers," Al-Bassri said in a statement. Al-Bassri, who retired as assistant commander of logistics and supply last summer after a 34-year career at the Royal Saudi Air Force, joined the Riyadh headquarters of BAE Systems.
Martin McCann, director of the Al-Yamamah Project within the BAE System, led the process of bringing more engineering work to Saudi Arabia. "In the engineering and component supply areas this has not been easy, because the company acquires much from independent suppliers located outside the region. Because of significant expansion in the Saudi industrial sector, BAE Systems feels that the time is right to feed in much more of the component work to the Kingdom," McCann said.
"We will not restrict ourselves to aircraft parts, but will look for local manufacturing for a much wider range of engineered components for other services," he added.
