Huge boost to US air defence and cruise missile production

Raytheon has signed five major framework agreements with the U.S. Department of War aimed at significantly expanding production capacity for key missile systems, including Tomahawk cruise missiles, AMRAAM air-to-air missiles, and multiple variants of the Standard Missile family.

The agreements, lasting up to seven years, are intended to increase annual production and accelerate deliveries of Tomahawk Land Attack and Maritime Strike variants, AMRAAM missiles, SM-3 Block IB interceptors, SM-3 Block IIA interceptors, and the SM-6 missile.

Raytheon said the agreements will allow it to raise Tomahawk production to “more than 1,000” per year, AMRAAM production to “at least 1,900” annually, and SM-6 production to “more than 500” annually. The company also plans to increase SM-3 Block IIA output and accelerate SM-3 Block IB production.

According to the company, “many of these munitions will grow 2 to 4 times their existing production rates” as global demand continues to rise. RTX Chief Executive Chris Calio said the agreements would reshape how government and industry cooperate on weapons production. “These agreements redefine how government and industry can partner to speed the delivery of critical technologies,” he said, adding they were linked to the administration’s Acquisition Transformation Strategy.

Production work will take place at Raytheon facilities in Tucson, Arizona; Huntsville, Alabama; and Andover, Massachusetts. RTX said it has already invested heavily in capacity expansion and will continue to fund facility, workforce and technology upgrades to sustain what it described as a historically high production rate.