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Saudi Arabian Military Industries (SAMI) launched a joint venture with France’s Figeac Aero and the Saudi Arabian Industrial Investments Co. (Dussur) to build a high-precision manufacturing facility in the kingdom to produce aerostructure components, SAMI said in a statement today, Dec. 4.
The announcement was made during the Saudi-French Investment Forum held on the sidelines of the visit of French President Emmanuel Macron to Saudi Arabia.
The joint venture aims to develop Saudi Arabia’s aerostructure manufacturing capabilities, train Saudi engineers and technicians to work as part of the project, and boost the localization of military and civil aerospace industries in line with Saudi Vision 2030.
Initial products will focus on machining and processing of light alloy (aluminum) and hard metal (titanium) aerospace parts.
The joint venture was completed following the signing of an agreement during the Paris Air Show in 2019, after its establishment received all necessary regulatory approvals from the Saudi General Authority for the competition, which issued a no-objection certificate on completion of the merger of the three companies.
The joint venture was successful in gaining the approval of five other regions, including the European Union. The shares in the new company will be distributed as a minority partner between Vigiac Aero and Sami Dussur Aeronautical Systems LLC, a joint venture between SAMI and Dussur.
The 10-year project will include a series of large investments, most of which will be funded by local financial institutions, including the launch of a new manufacturing unit at the AACC site in Jetta.
Four advanced five-axis computer number control (CNC) machines and ancillary equipment are currently scheduled for production by the end of this year.
The first phase aims to expand the facility, which is scheduled to be completed by 2024 with a total investment of $ 50 million (nearly SAR 187.5 million), including equipment, infrastructure, training programs and certifications.
This phase aims to generate $ 10 million (nearly 3.75 million) revenue by the end of 2024. Sami Vijak Aero Manufacturing LLC will be provided with 14 advanced equipment units and employ more than 60 people.
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