On May 14, Boeing sealed a deal to supply missiles worth $1.97 billion to the Saudi government, as reported by NDTV. The aircraft manufacturer experienced a lot of economic turbulence in recent months.
In the latest Saudi deal, the first contract is meant for the modernization of SLAM-ER cruise missiles and delivery of 650 new missiles. These missiles are meant for the support of the government of Saudi Arabia, according to official reports.
The Pentagon confirmed on March 13 that Saudi Arabia awarded two contracts to Boeing worth over $2 billion. The aircraft manufacturer is expected to deliver over 1,000 air-to-surface and anti-ship missiles to the Saudi government.
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The contract is scheduled for completion by December 2028 for the SLAM Ers. These are GPS-guided air-to-surface missiles with a range of around 155 nautical miles (approximately 180 miles, 290 kilometres).
The Pentagon also confirmed the existence of a contract worth over $650 million for the delivery of 467 new Harpoon Block II anti-ship missiles. Saudi Arabia is set to receive more than 400 of these missiles from the contract.
Other missiles will be delivered to Qatar, Brazil, and Thailand. Additionally, support equipment is scheduled for delivery to the Netherlands, India, South Korea, and Japan according to the statement.
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In another statement, Boeing explained that the new contracts would guarantee the Harpoon program’s continuity through 2026. Hence, it will support the restart of the SLAM-ER production line.
Boeing put the cumulative cost of the contracts at $3.1 billion. The company’s spokeswoman said that the amount included a previously announced order.
These contracts are a win for Boeing that has suffered significant losses in revenue and a surge in coronavirus-related costs. The drop in air travel has also hit hard demand for new planes. The continuing efforts to get the 737 MAX planes back in the air have also affected the company’s bottom line.
Shares of Boeing (NYSE: BA) were down 3.88% trading at $116.79 on May 14.
