Boeing Secures $14.7bn Contract to Triple Patriot Missile Seeker Output

Boeing has secured an approximately 14.7 billion US dollar contract from Lockheed Martin to expand production of seekers used in the Patriot air-defence system, as the US moves to increase output of missile-defence capabilities.

The undefinitised contract action will allow Boeing to triple production of PAC-3 Missile Segment Enhancement seekers under a previously announced seven-year framework agreement with the US Department of War.

The seekers are a key component of the PAC-3 MSE interceptor, providing the system with the capability to identify and track targets before engagement. The interceptors are designed to counter threats including aircraft, ballistic and cruise missiles and hypersonic weapons.

Boeing said production expansion and recruitment began earlier this year following the framework agreement. The latest contract is expected to create hundreds of direct and indirect jobs in the Huntsville, Alabama area.

The company has been expanding its production capacity through investment in its PAC-3 seeker manufacturing facility and upgrades to its supply chain and manufacturing processes.

Boeing said it has also increased supplier capacity, modernised production facilities and introduced new technology and quality-control measures as it prepares to increase output.

The production ramp-up forms part of the US Department of War’s effort to expand weapons manufacturing capacity under its Acquisition Transformation Strategy.

The contract also illustrates the growing importance of production capacity in the US defence industry as Washington seeks to increase the availability of missile-defence systems and related components.

Boeing, one of the world’s largest aerospace and defence companies, supplies commercial aircraft, defence systems and space products to customers in more than 150 countries.

Source: FSX Business News