SIECO signs MoU to set up military, defense supply chains JV

Logo of Saudi Industrial Export Co.

Saudi Industrial Export Co. (SIECO) signed, on March 9, a memorandum of understanding (MoU) with Science Technology for Development and Industrial Investment Co. (STII), S&K Aerospace Middle East and Rekaz National Capital Co. to jointly establish Ataad, a company specialized in supply chains and logistics for the military and defense industries.

The MoU is effective for one year starting from the date of signing, the company said in a statement to Tadawul.

The joint venture (JV) will provide supply chain financial solutions, as well as solutions of logistics, warehousing and supply chain information.

Under the MoU, STII will act as a local technical partner through its knowledge and technical capability in the Kingdom to build a customer base and beneficiaries in the local and regional markets to provide technical supply services for defense systems.

S&K Aerospace will add professional and global knowledge value to this partnership in the supply chain sector, the military industry logistics as well as the technical supply services, in addition to the artistic extension for the US defense systems, given that it is the procurement and logistical support arm of the Ministry of Defense (Pentagon).

This strategic alliance is led by the National Finance Fund for Supply Chain Management and Logistics for the Military and Defense Industries, which is managed by Rekaz National Capital.

Rekaz aims to settle in the supply chains and logistics sector of the military and defense industries as well as to create several manufacturing opportunities through Ataad to enter into the spare parts sector and consumption of defense systems used locally and regionally.

SIECO will mainly contribute to supporting Ataad in supplying lines to reach regional and international markets, through its technical and knowledge capabilities in export and re-export. The Saudi firm also aims to supply equipment to cover the local, regional and international markets.

The deal does not have any related parties, SIECO said, adding that the there is no financial impact during the duration of the memorandum, and any further developments will be announced later.