Russian machine-building company Vityaz has geared up to develop a new surface-to-air missile (SAM) system for the Arctic and the Extreme North.

The upgraded Thor-M2DT shorter-range missile system will be developed as part of a RUB122.5m ($1.70m) contract, reported Arctic.ru.

Under the terms of the contract, the missile system will be mounted on an operational caterpillar armoured personnel carrier (APC) comprising a launcher and a crew module.

"The new SAM system is scheduled for completion in October, and will undergo state acceptance tests by late May 2017."

The new SAM system is scheduled for completion in October, and will undergo state acceptance tests by late May 2017.

Capable of launching missiles while moving, the Thor missile system has been designed to protect ground facilities from aerial threats, such as stealth-type bombers, drones and cruise missiles.

Thor systems are currently in service with Russia, China, Greece, Egypt, Iran and Venezuela, as well as several Commonwealth of Independent States (CIS) countries.

Vityaz will also develop a self-contained vehicle maintenance workshop.

The company currently exports diesel powered trucks with a GVW of more than 20t, and produces lifting and handling equipment, according to the Ministry for Economic Development of the Russian Federation.