The Pentagon's plan to dramatically increase production of Patriot interceptor missiles has moved from a framework agreement—signed earlier this year—to a firm contract.
According to Lockheed Martin, the U.S. government has signed a contract worth up to $53.86 billion for the supply of PAC-3 MSE interceptor missiles.
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Including the first contract of the year, worth $4.7 billion, which was signed in April, the total order for these missiles amounts to $58.62 billion. This amount is allocated through the end of fiscal year 2032, ending on September 30, 2032.
On average, Lockheed Martin is expected to receive $8.4 billion per year for the production of PAC-3 MSE interceptor missiles alone. At the same time, actual cash inflows will be uneven and will depend on production capacity.
The target to be achieved by the end of 2030 is to triple current production capacity. In 2025, Lockheed Martin produced 620 PAC-3 MSE missiles, which means production will reach approximately 1,900 missiles.
This will be achieved through an investment of $8–9 billion to modernize more than 20 facilities in the U.S. and increase the number of jobs from 1,200 to approximately 1,850 at the facility in Camden, Arkansas, where the final stages of the PAC-3 MSE production cycle are carried out.
In total, more than 400 companies are involved in the production of the PAC-3 MSE. The current production cycle is estimated at 24 months, and several bottlenecks continue to hinder faster production expansion, particularly the manufacture of active radar seekers by Boeing.
From the Defense Express side, we urges you to join a fundraising for what is already working: One United Fundraiser: Fundraising by the Serhiy Prytula Charity Foundation for interceptor drones.
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