Riyadh, March 23, 2022, SPA -- Aircraft Accessories and Components Company (AACC), a subsidiary of Saudi Arabian Military Industries (SAMI), today announced the signing of a Preferred Supplier Agreement with Derco, a wholly owned subsidiary of Lockheed Martin. The agreement will enable AACC to enhance further its existing capabilities in serving the C-130 Hercules fleets of the Royal Saudi Air Force (RSAF). AACC’s partnership with Derco will create a high velocity C-130 supply chain solution for component repair and maintenance, which includes capability development to transition mutually agreed-upon spares and repair capabilities to AACC. The partnership aims to further AACC’s vision to emerge as a leading SAMI center for mechanical component MRO and a military and commercial aviation service provider. Furthermore, the agreement will serve to not only optimize AACC’s manpower and resources and increase its productivity but will also allow Saudi technicians to gain valuable experience across a range of emerging military technologies. Furthermore, the agreement will allow SAMI to advance its long-term strategic objectives by helping the Kingdom build a sustainable, self-sufficient military industries sector through facilitating the transfer of technology (ToT), transfer of knowledge (ToK), and transfer of production (ToP) in collaboration with industry leaders. This partnership also represents another major milestone for SAMI and Lockheed Martin, who only a year ago inked a strategic joint venture agreement to facilitate cooperation between the two companies in enhancing Saudi Arabia’s domestic defense and security capabilities and supporting the industrialization and economic development objectives of Saudi Vision 2030. Commenting on the announcement, Chief Executive Officer of AACC Eng. Mazen Johar said: “This exciting new agreement will serve to further our ties with Lockheed Martin while helping fulfill the Kingdom’s growing need for localized military equipment suppliers and service providers. We look forward to commencing our partnership with Derco, one which we believe will prove extremely conducive to our long-term technology transfer, job creation, and local content development goals and the furtherance of our Vision 2030 objectives.” “The Royal Saudi Air Force is one of the world’s largest and most recognized C-130 Hercules operators in the world, supporting critical national and regional missions. Derco’s role as a preferred supplier for this trusted fleet of C-130s ensures RSAF crews will continue to support any mission at any time. Lockheed Martin’s relationship with the Kingdom represents almost 60 years of partnership rooted in the C-130 Hercules. It is an honor to expand our relationship and service to the Kingdom with this new and important partnership,” said Chief Executive of Lockheed Martin Saudi Arabia and Africa Brigadier General (Ret.) Joseph Rank. Derco is a Lockheed Martin authorized repair facility for C-130 components, and the exclusive original source for C-130H Certified Parts designed by Lockheed Martin. Derco is uniquely qualified to support AACC in fulfilling its spares requirements to the RSAF. Derco maintains over 30 distribution and licensing agreements with system manufacturers and offers personalized solutions designed to improve fleet availability and reduce operational costs. --SPA 15:52 LOCAL TIME 12:52 GMT 0014 www.spa.gov.sa/w1711413