Lockheed Martin lands huge PAC-3 missile production deal

Lockheed Martin has been awarded a USD 4.7 billion contract by the U.S. government to continue accelerated production of the PAC-3 Missile Segment Enhancement interceptor, the company stated.

The contract action is intended to enable Lockheed Martin to increase production rates and deliver what the company described as record numbers of the combat-proven interceptor to American and allied forces this year.

The deal follows a framework agreement signed with the Department of War on 6 January as part of the administration’s Acquisition Transformation Strategy, which aims to rapidly scale up munitions production. Under that earlier agreement, Lockheed Martin committed to tripling PAC-3 MSE production capacity.

Tim Cahill, president of Lockheed Martin Missiles and Fire Control, was quoted as saying: “We are answering the nation’s call with urgency and partnering with the DoW to accelerate PAC-3 MSE production faster than ever before.”

He added: “Our investments in our facilities, workforce and supply chain ensure we can deliver at scale and with speed. With the right tools, proven processes and skilled employees in place, we are positioned to deliver a record number of munitions in support of the warfighter and our allies.”

Lockheed Martin said it has invested more than $7 billion since President Trump’s first term to expand capacity for priority systems, including approximately $2 billion dedicated to accelerating munitions production, according to the company. The firm recently broke ground on a new Munitions Acceleration Centre and opened a Rapid Fielding Centre for next-generation systems development and prototyping.

The PAC-3 MSE is the primary interceptor used by the Patriot air defence system and has seen operational use including during Operation Epic Fury. The contract follows similar recent agreements to quadruple production of THAAD interceptors and scale up Precision Strike Missile output.