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Saudi defense contractor to invest up to $16 million to further localize services

Saudi-based defense contractor Middle East Propulsion Company plans to invest up to $16 million over the next two years to upgrade its capabilities. (Kateryna Kadabashy/AN)
Saudi-based defense contractor Middle East Propulsion Company plans to invest up to $16 million over the next two years to upgrade its capabilities. (Kateryna Kadabashy/AN)
18 Nov 2019 10:11:53 GMT9
18 Nov 2019 10:11:53 GMT9

Kateryna Kadabashy, Dubai

Saudi-based defense contractor Middle East Propulsion Company (MEPC) plans to invest between $13 million and $16 million over the next two years to build test cells for aircraft engines and establish new production lines.

These expansion activities should complement the company’s objective to localize high-tech repairs and combine them in one roof for the Saudi defense ministry, which is a major customer, CEO Abdullah Al-Omari told Arab News.

Instead of sending aircraft engines and engines modules overseas for further servicing, thus take up more time before military assets return to actual service, localization not only cuts the turn-around period but also reduces Saudi government spending for the repairs.

“We have accomplished more than 1,600 engine and engine modules [since 2001, they] have been maintained totally in Saudi Arabia,” Al-Omari said at the sidelines of the Dubai Airshow. “The engines consume 45 percent of what you spend on aircraft.” The company works on 150 to 160 engines and engine modules every year.

MEPC is the first specialized MRO (maintenance, repair and overhaul) company operating in the Middle East, according to its website. It has invested over $26 million during the previous two years for the localization of its MRO services.

“We used to send these parts to outside, it takes 6 months to 24 months sometimes … in case of the Apache engines, minimum turn around is 24 months,” Al-Omari said, but their localization efforts have greatly improved their capability by cutting the turn-around period to only 150 days.

The speed at which MEPC is able to repair engines and modules, boosts the readiness of Saudi military, Al-Omari added.

The company is in talks with major defense contractors, including Honeywell for the Abrams talks and GE T700 engines, for possible tie-ups to further improve their capability, he said.

“Currently there is a potential with the Kuwait army to provide them with similar services [being delivered to the Saudi defense ministry],” Al-Omari said, and expects that cooperation would start “within the next two years or so.”

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