Boeing Co (NYSE:BA) has signed many defense and commercial contracts with Saudi Arabia during a visit by U.S. President Donald Trump.
The kingdom has agreed to buy Chinook helicopters, associated support services, and guided weapon systems. In addition, the kingdom intends to purchase P-8 maritime, patrol and reconnaissance aircraft, Boeing said in a statement.
Saudi Arabia is likely to receive 48 CH-47F Chinook cargo helicopters, related equipment, training and support worth around $3.5 billion, according to Reuters. The plans were announced by the U.S. government in December.
Also, Boeing has agreed to form a joint venture with the kingdom to provide sustainment services for a wide range of military platforms. It also has inked a deal with SaudiGulf Airlines for the sale of up to 16 wide-body airplanes. The sale is expected to include Boeing 777 and or 787 aircraft, Reuters reported, citing a person familiar with the matter.
“These announcements reaffirm our commitment to the economic growth, prosperity and national security of both Saudi Arabia and the United States, helping to create or sustain thousands of jobs in our two countries,” Boeing Chairman, President and CEO Dennis Muilenburg said in a statement.
In addition, Boeing said that the Saudi Rotorcraft Support Company – a joint venture between Boeing, Alsalam Aerospace Industries and Saudia Aerospace Engineering Industries – recently received a commercial registration certificate. The joint venture will provide support for both military and commercial helicopters.
Boeing did not disclose the total value of the deals.
“Our decades-long partnership with the Kingdom began in 1945 when President Roosevelt presented a DC-3 to King Abdul Aziz Al Saud, launching commercial air travel in the region. We welcome the opportunity to continue that support. I appreciate the efforts of King Salman, President Trump and his administration to support American manufacturers as we seek to grow at home and around the world,” Muilenburg added.
Meanwhile, shares of Boeing Co (NYSE:BA) closed up 1.89% on Friday. The stock is up over 16% so far this year.
