METCO Signs Defense Localization Deals in Saudi Arabia

Why it matters

- The partnership with Teledyne FLIR involves the localization of the Lightweight Vehicle Surveillance System (LVSS). A $7.8 million contract will provide the Saudi military with this mobile system, which integrates a TacFLIR® 380HD long-range thermal imager and a Ranger® R20SS radar capable of tracking 500 objects at over 10 miles. - The agreement with Smiths Detection will focus on localizing advanced X-ray screening systems that utilize artificial intelligence for threat detection. METCO and Smiths Detection are building a new assembly and manufacturing facility in Saudi Arabia, scheduled to open in the first quarter of 2026, which will also include a customer showroom and a training center. - The collaboration with European aerospace company Destinus is centered on localizing capabilities for unmanned aerial systems. Destinus is developing hydrogen-powered, AI-piloted hypersonic UAVs and recently acquired the AI company Daedalean to enhance autonomous operations, particularly for navigation in GPS-denied environments. - The deals are part of a broader push by Saudi Arabia's General Authority for Military Industries (GAMI) to localize over 50% of its military spending by 2030, a key goal of the Vision 2030 economic diversification plan. - These agreements were announced at the second edition of the World Defense Show in Riyadh, an event that saw over 773 exhibitors and resulted in deals totaling SAR 26 billion (approximately $6.93 billion).

Key numbers

• A $7.8 million contract will provide the Saudi military with this mobile system, which integrates a TacFLIR® 380HD long-range thermal imager and a Ranger® R20SS radar capable of tracking 500 objects at over 10 miles.
• METCO and Smiths Detection are building a new assembly and manufacturing facility in Saudi Arabia, scheduled to open in the first quarter of 2026, which will also include a customer showroom and a training center.
• The deals are part of a broader push by Saudi Arabia's General Authority for Military Industries (GAMI) to localize over 50% of its military spending by 2030, a key goal of the Vision 2030 economic diversification plan.
• These agreements were announced at the second edition of the World Defense Show in Riyadh, an event that saw over 773 exhibitors and resulted in deals totaling SAR 26 billion (approximately $6.93 billion).

What happens next

• A $7.8 million contract will provide the Saudi military with this mobile system, which integrates a TacFLIR® 380HD long-range thermal imager and a Ranger® R20SS radar capable of tracking 500 objects at over 10 miles.
• The agreement with Smiths Detection will focus on localizing advanced X-ray screening systems that utilize artificial intelligence for threat detection.
• METCO and Smiths Detection are building a new assembly and manufacturing facility in Saudi Arabia, scheduled to open in the first quarter of 2026, which will also include a customer showroom and a training center.

Sources

• announced
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• These agreements were

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