RTX awarded $344 million contract to modernize electronics unit for missile development program

Rhea-AI Summary

Raytheon, an RTX business, has been awarded a $344 million contract for the development of two missile variants – the SM-2 Block IIICU and SM-6 Block IU. The upgrades will enhance the speed and efficiency of production for defense systems important to the U.S. Navy and international allies. The project, funded by Foreign Military Sales, marks a significant advancement in radar technology for international partners.

Positive

• The $344 million contract awarded to Raytheon for missile development signifies a major advancement in defense technology.
• The common guidance section for the SM-2 Block IIICU and SM-6 Block IU variants will streamline production, leading to cost reductions and increased scalability.
• The project is largely funded by Foreign Military Sales, indicating strong international interest and support.
• International allies like Australia, Canada, Japan, and Korea will benefit from the enhanced missile technology developed under this contract.
• Raytheon's work on this project will contribute to strengthening defense capabilities for the U.S. Navy and its partners.
• The use of common sub-sections for both missile configurations will facilitate efficient development and testing processes.
• Fielding Standard Missile active radar technology for international allies represents a significant milestone in defense collaboration.

Negative

• None.

Updates will allow for continued, rapid deliveries of Standard Missile variants to the U.S. and international fleets

TUCSON, Ariz., April 25, 2024 /PRNewswire/ -- Raytheon, an RTX (NYSE: RTX) business, has been awarded a $344 million contract for the development of two missile variants – the SM-2 Block IIICU and SM-6 Block IU – which will be based on a common guidance section, where the electronics and software that guide a missile to its target are housed.

The updated variants will share a newly designed guidance section, target detection device, independent flight termination system and electronics unit. This commonality will allow Raytheon to manufacture both missiles on a common production line, providing flexibility, scalability, and cost reductions.

"Upgrades under this contract will allow us to increase speed and efficiency in production of these weapon systems that are integral to the defense of the U.S. Navy and our allies," said Kim Ernzen, president of Naval Power, Raytheon. "It's also a very important step forward for our international customers, as this will be the first time that Standard Missile active radar technology will be fielded by the U.S.'s international allies."

The development program is largely funded by Foreign Military Sales. The first users of these updated missiles will be the U.S., Australia, Canada, Japan, and Korea.

Work on this contract is being conducted in Tucson, Arizona. While the common sub-sections will be developed for both missile configurations under this award, there is a follow-on contract expected later this year which will complete the missile level qualification events as well as At-Sea flight tests specific to the SM-2 Block IIICU configuration.

About Raytheon 
Raytheon, an RTX business, is a leading provider of defense solutions to help the U.S. government, our allies and partners defend their national sovereignty and ensure their security. For more than 100 years, Raytheon has developed new technologies and enhanced existing capabilities in integrated air and missile defense, smart weapons, missiles, advanced sensors and radars, interceptors, space-based systems, hypersonics and missile defense across land, air, sea and space.

About RTX 
RTX is the world's largest aerospace and defense company. With more than 185,000 global employees, we push the limits of technology and science to redefine how we connect and protect our world. Through industry-leading businesses – Collins Aerospace, Pratt & Whitney, and Raytheon – we are advancing aviation, engineering integrated defense systems for operational success, and developing next-generation technology solutions and manufacturing to help global customers address their most critical challenges. The company, with 2023 sales of $68.9 billion, is headquartered in Arlington, Virginia.

For questions or to schedule an interview, please contact corporatepr@rtx.com

 

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SOURCE RTX

FAQ

What is the value of the contract awarded to Raytheon for missile development?

Raytheon was awarded a $344 million contract for the development of two missile variants.

Which missile variants will be developed under the contract?

The contract involves the development of the SM-2 Block IIICU and SM-6 Block IU missile variants.

Who will benefit from the enhanced missile technology developed under the contract?

International allies like Australia, Canada, Japan, and Korea will benefit from the enhanced missile technology.

Where is the work being conducted for this contract?

The work on this contract is being conducted in Tucson, Arizona.

What is the significance of the project being largely funded by Foreign Military Sales?

The project being funded by Foreign Military Sales indicates strong international interest and support for the missile development.

What is the importance of fielding Standard Missile active radar technology for international allies?

Fielding Standard Missile active radar technology for international allies marks a significant advancement in defense collaboration.