Raytheon, a heavyweight in defense manufacturing, is setting the stage for a major upgrade to America's naval firepower with its Tucson operation, which secured a $344 million contract. This latest deal has Raytheon developing two Standard Missile variants, the SM-2 Block IIICU and the SM-6 Block IU, equipped with high-tech shared guidance technology. The pact is part of a broader initiative to modernize the U.S. Navy's missile arsenal, and the Tucson facility stands to streamline the production process considerably, according to a recent report in the Phoenix Business Journal.
Tucson's missile makers will be developing a common guidance section for these missiles, which includes sophisticated electronics and software aimed at enhancing their target-hitting capabilities. The new technology promises a more efficient production line that is scalable and cost-effective, potentially resulting in a beefed-up missile inventory for the U.S. Navy and its allies. As part of Raytheon's efforts, this update represents a significant milestone as it will mark the debut of Standard Missile active radar technology being fielded by international allies beyond America's borders. "Upgrades under this contract will allow us to increase speed and efficiency in the production of these weapon systems that are integral to the defense of the U.S. Navy and our allies," Kim Ernzen, president of Naval Power at Raytheon, emphasized in a statement obtained by PR Newswire.
Not only will the United States reap the benefits, but nations like Canada, Australia, Japan, and Korea are all slated to leverage the upgraded firepower, the funding for which is primarily sourced from Foreign Military Sales. Looking down the pipeline, another contract is expected later in the year dedicated to missile qualification and seaworthiness tests, particularly for the SM-2 Block IIICU variant.
The deal is a boon for Raytheon's Tucson operations, which stands as one of Arizona's largest defense contractors. Additional recent Raytheon deals include a $1.2 billion agreement with Germany for the Patriot missile defense system and a Tucson-managed order nearing $345 million for the production of StormBreaker missiles. Raytheon, operating under the RTX banner, has a storied history exceeding 100 years in defense solutions, involving an expansive repertoire from air and missile defense to hypersonics and space-based systems.
Raytheon's presence and growth in the defense industry remain paramount; the company's tactical advancements were highlighted when a new software configuration for the SM-6 was tested against a medium-range ballistic missile in the Pacific just last month, showcasing its multi-faceted defensive capabilities. Moreover, Raytheon's Tucson outfit will also handle a separate $24.5 million contract modification, furnishing further tooling, equipment, and labor for the Navy's tactical Tomahawk missiles. The work from this additional contract is expected to wrap up by October 2025, as reported by the Phoenix Business Journal.
