Advanced Electronics Company (AEC), set up under the Saudi economic offset programme, plans to diversify its activities and product base in the military and commercial fields to address manufacturing, support and systems integration, while seeking collaborations with leading, quality-oriented international companies.

The company has since its inception in 1988 already participated in joint ventures with top-profile companies, figuring among a few high-tech organisations in the Middle East that can count among their customers, giant establishments themselves prominent in sophisticated production.

"AEC has absorbed considerable technology and is continuing to invest in expanding its capabilities in research and development, manufacturing, test process and manpower resources," it said in a statement.

"Maximising Saudi career opportunities is a major thrust of the company's human resources effort. Currently almost 86 per cent of the technical and engineering staff are Saudis."

Customers who have featured in its list include Saudi Aramco, Boeing, Ericsson, Raytheon, Lockheed Martin, Thales, Northrop Grumman, ITT, Rockwell, General Dynamics and Lucent Technologies.

AEC is also supplier to the Saudi Armed Forces, Saudi Telecommunications Company (STC) and the US army and navy.

Boeing Industry Technology Group holds 50 per cent of AEC shares, the remainder being shared by National Industrialisation Company and Gulf Investment Corporation (15 per cent each) and National Commercial Bank and Saudi Arabian Airlines (10 per cent each). The paid-up capital is SR110.5 million ($29.5 million).

AEC's undertakes manufacturing under licence, build to print or its own design. The company also conducts systems implementation, repairs and research and development and provides technical support, training and field service.

Its major manufactures are M1A2 and F-15S and F-16 electronics, tactical radios, paveway laser-guided bombs and control display units (CDU) 800 for military aircraft.

The range also covers the telephone switching system, payphones (smart card technology), Sophie (handheld thermal image), components for the GSM expansion programme and the supply of communication systems for the Air Defence Patio Programme.

The company started initially manufacturing military products, but in 1992 it began building electronics for military tanks, later producing electronics for F15 fighter aircraft, subcontracted to various US companies such as North Brummond, Hughes, McDonnell Douglas and Laurel and Smith.

In December 1994, AEC signed a major contract with A&T under which AEC would build telecommunication switches. AEC has also supported Saudi Telecommunications Company's (STC) expansion programmes by manufacturing, for instance, components for Lucent Technology and Ericsson, who have been active in STC projects.

One of the important projects signed in recent years was with Thomson-CSF of France in late 1999. The deal covered the manufacture of electronics on Chlio WS, a stabiliser for the Forward Looking Infra Red System (Flir) designed for airborne applications.

In the following year, a contract worth SR500 million was signed with LM Ericsson that required AEC to perform activities related to STC's GSM expansion including radio base stations and power systems assembly, testing and integration.

Earlier this year, AEC signed an agreement with Ericsson Saab Surveillance Systems to manufacture the surveillance Gapfiller System (SGS).

The agreement also allows AEC to test, repair and provide full local technical support for the SGS, which has been described as a very accurate radar system capable of providing extra surveillance coverage that normal radar cannot provide.

"Ericsson Saab selected AEC because of AEC's demonstrated commitment to quality and capability in manufacturing advanced electronic products and system," the Swedish company said.

Gunnar Fredrikson, president of Ericsson Saab Surveillance, noted: "We are pleased to establish this relationship with AEC, a strong and capable Saudi partner, and hope that this agreement is just the first in a series of successful efforts by which we enhance the full technical support of our products through high-technology transfer and teaming with a very capable industrial firm.

"This agreement, which includes advanced technology, fulfils the industrial diversification objectives of the Government of Saudi Arabia in particular, and brings new high technology to the Gulf region."

President and CEO of AEC, Abdulaziz Sugair said: "This agreement confirms AEC's growing capabilities as a supplier of high-tech systems and is testimony to our qualified workforce, a significant portion of which is Saudi."

He added that the technology provided to AEC would enhance the company's existing manufacturing and repair capabilities to provide full support to its local and regional customers as well as maintaining an active production line to support future upgrade and modification requirements.

AEC's repair work includes communication systems electronic boards, ALQ-135 electronics warfare system for F-15s, electronics system for the RSAF peace shield programme, special repair activity (SRA) for the Apache helicopter (target acquisition designated system/pilot night vision sensor, expanded repair capability (ERC) for F-15 low-altitude navigation and targeting infrared for night (Lantirn) system and various electronic board repair programmes for the military, commercial and industrial customers. AEC's production facilities are located in Riyadh. Of a total of 409 staff, 76.77 per cent are Saudis and 2.44 per cent are expatriates while 20.78 per cent are listed as others. The company has obtained the highest quality rating from leading international companies such as Boeing (gold), Lucent (Grade A), Lokheed Martin (Star) and USAF CPAR (Blue).

The factory is also certified to ISO 9001 and to Mil-I-45208, Mil-Std-45662, Mil-Std-2000A and Mil-Std-1686 levels.