Riyadh - Mubasher: Saudi Chemical Company has issued a progress update regarding its ongoing partnership with the Bosnian defense firm, TRB Company, aimed at the localization of advanced munitions technology.
The agreement, which focuses on the transfer of knowledge and the domestic manufacturing of mechanical fuzes for 155mm, 105mm, and mortar ammunition, remains in the implementation phase.
While the project is navigating complex regulatory and technical requirements, the company confirmed that the strategic objectives remain unchanged and the anticipated financial benefits are expected to materialize following the commencement of commercial production.
The latest disclosure follows the initial announcement made on 6 February 2024, regarding the contract signed by the group’s subsidiary, Saudi Chemical Company Limited.
The partnership is a significant step in the company’s efforts to align with the Kingdom’s broader industrial goals of localizing defense manufacturing and reducing reliance on imported military components.
According to the filing, the project is currently progressing through several critical regulatory and technical milestones necessary for full operational integration.
Saudi Chemical clarified that the agreement is still being executed, with the company actively working to fulfill all relevant legal and regulatory requirements.
A primary focus of the current phase involves securing the necessary licenses to facilitate the next steps of the project. Specifically, the company is in the process of obtaining import licenses for mechanical fuze samples.
These samples are essential for conducting field trials with end-users, a mandatory step to ensure the product meets the rigorous safety and performance standards required for military applications.
The delay in completing the implementation phases, relative to previous timelines, is attributed to the sequential nature of these regulatory procedures.
The company noted that it is maintaining close coordination with the relevant Saudi authorities to initiate field testing within the Kingdom. These trials are a prerequisite for the final qualification and certification of the product by the end-user. Once this qualification process is finalized, the company will proceed with the full transfer and localization of the specific technologies required for domestic manufacturing.
Regarding the financial implications of the project, Saudi Chemical stated that there has been no change in the costs associated with the agreement compared to what was previously disclosed.
The company expects the financial impact of this contract to be positive, though this effect will only be reflected in its financial statements after the product qualification phase is concluded and commercial production begins. The specific date for the start of commercial operations will be announced at a later stage as milestones are reached.
