$750 Million Tank Engine Sale Approved for Saudi Arabia
The U.S. State Department has approved a potential $750 million sale of AGT-1500 tank engines to Saudi Arabia, which would be built by Honeywell at Anniston Army Depot in Alabama.
The AGT-1500 is the only engine that powers every M1 Abrams tank worldwide and has been used by Saudi Arabia since it purchased 315 units in 1989. The sale is aimed at sustaining Saudi Arabia's existing fleet of M1 Abrams tanks, rather than funding new purchases.
Honeywell would be the sole contractor on the deal if it goes through, with no offset arrangement attached to this sale yet. Congressional notification doesn't mean the sale is final, as lawmakers have a review period during which they can object before the U.S. government and Saudi Arabia sign an actual contract.