BAE Systems has signed a seven-year agreement with the U.S. Department of Defense to significantly expand production of the infrared seeker used in the Terminal High Altitude Area Defense (THAAD) interceptor missile, the company stated.
The deal will see BAE Systems quadruple its annual production capacity for the THAAD seeker, which provides sensing and guidance capabilities for the missile system. THAAD interceptors are designed to engage ballistic missiles both inside and outside of the atmosphere, according to the company.
Tom Arseneault, president and CEO of BAE Systems, Inc., was quoted in the announcement as saying: “This new, multi-year agreement provides a long-term demand signal that gives us the confidence to further invest in expanding our capacity; and underscores the strength of industry’s collaboration with the Department of War.”
He added: “We remain focused on rapidly delivering superior technology at scale to help our warfighters maintain a decisive advantage.”
The agreement supports the Department’s Acquisition Transformation Strategy, a reform effort aimed at accelerating the delivery and scaling of critical defence technologies. BAE Systems produces the THAAD seeker at facilities in Nashua, New Hampshire, and Endicott, New York, in support of prime contractor Lockheed Martin. The company said it would continue to invest in technology, manufacturing, and workforce expansion to support long-term, high-volume production under the deal.
Sounds expensive… I suppose it’s good news for them.