Oct 5 (Reuters) - Boeing on Monday said it was awarded a seven-year contract worth about $14.7 billion by Lockheed Martin to scale production and deliver PAC-3 Missile Segment Enhancement (MSE) seekers.
• PAC-3 MSE is a hit-to-kill interceptor used within the Patriot air defense system to counter ballistic missiles, cruise missiles and aircraft.
• The contract award enables Boeing to triple the production of PAC-3 MSE seekers, the missile's guidance component that detects, tracks and helps intercept
incoming targets.
• In January, Lockheed announced a seven-year framework agreement with the US Department of War to increase the annual production capacity for its PAC-3 missile interceptors to 2,000 units a year from about 600 previously.
• The production agreements are designed to entice contractors to move faster on increasing output.
• They are part of a broader push by the Trump administration to prioritize weapons production over shareholder returns.
• Industry executives have warned that Congress has not yet appropriated funding for the deals, meaning contractors may be unable to invest at scale in components and facilities until lawmakers act.
• Demand for the interceptor has surged as conflicts in Iran and Ukraine strain US weapons stockpiles, prompting the US Army in July to award Lockheed Martin a contract worth up to $58.6 billion to boost PAC-3 missile production.
(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Maju Samuel)
