Advanced Electronics Company (AEC) of Saudi Arabia will manufacture the Surveillance Gapfiller System (SGS) in the Kingdom following an agreement it signed with Sweden's Ericsson Saab Surveillance Systems, Ab.

The agreement also allows AEC, a Saudi offset programme company, 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 surveillancve coverage that normal radar cannot provide.

"Ericsson Saab selected AEC because of AEC's demonstrated commitment to quality and capability of manufacturing advanced electronic products and systems," the Swedish company said. Gunnar Fredrikson, President of Ericsson Saab Surveillance Systems 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"

Commenting on the agreement, President and CEO of AEC Abdulaziz Sugair, stated: "This agreement confirms AEC's growing capabilities as a supplier of high-tech systems and is testimony of our qualified work force, a significant portion of which is Saudi. We highly appreciate the strong support we have received from HRH Prince Sultan bin Abdulaziz, Second Deputy Premier, Minister of Defence and Aviation in Saudi Arabia, who always supports AEC involvement in many programmes to facilitate enhancement of local capabilities and to create job opportunities for Saudi nationals.

"We are proud to be associated with Ericsson Saab Surveillance System on this agreement that will provide new technology to Saudi Arabia and the region. The technology transferred to AEC will enhance our existing manufacturing and repair capabilities to provide full support to our local and regional customers as well as maintaining an active production line to support future upgrade and modification requirements."

AEC was established under Saudi Arabia's Economic Offset Programme in 1988 to create local capabilities in strategic areas such as advanced manufacturing technologies, communication systems, and product support. The Economic Offset Programme is supported by the Saudi Government and is supervised by a Ministerial Committee chaired by Prince Sultan bin Abdulaziz, Second Deputy Premier, Minister of Defence and Aviation and Inspector General. AEC's efforts are directed toward developing national capabilities in strategic areas thereby enhancing the Kingdom's self-sufficiency and improving operational readiness of advanced systems through local maintenance and support.

AEC, whose paid-up capital is SR110.5 million, ($29.4 million) is the leading company in the region capable of manufacturing sophisticated military and commercial electronics exceeding the most demanding military and commercial standards (AEC is MIL-I-45208A and ISO 9001 certified). Its state-of-the-art manufacturing facilities cover 18,000 sq m at King Khalid International Airport

Examples of manufacturing programmes at AEC include M1A2 tank electronics, F-15S and F-16 avionics, Panther V tactical radio, Paveway laser guided bomb, CDU-800 avionics for military aircraft, Smart card payphones, Telecommunication switches.

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

AEC plans to diversity its activities and product base in the military and commercial fields addressing manufacturing, support and systems integration, and expects to team with leading, quality-oriented international companies.

Under the AEC charter, the company will be engaged in the design, manufacture, support, modification and upgrades of items in the electronics field for military and commercial customers.

"The Government of Saudi Arabia is focusing on enhancing local capabilities to address strategic and economic objectives and to create good employment opportunities for Saudis. The strong support that AEC receives from the government, as an offset company, its solid local and international reputation, and its strong manufacturing, engineering and manpower base, make AEC an ideal partner for international companies seeking to enhance their market share in Saudi Arabia and in the region," the company said.