Reuters
WASHINGTON, Feb 4 (Reuters) – Raytheon, a unit of RTX, has reached a seven-year agreement with the Pentagon to boost production of Tomahawks, air-to-air missiles and ballistic missile interceptors, the company said on Wednesday.
The Pentagon’s push to expand production comes as Washington races to rebuild depleted weapons stockpiles.
The agreements follow similar deals brokered between the administration of President Donald Trump and the biggest U.S. defense contractors that lock in government demand over multiple years, giving the companies confidence to invest billions of dollars in new facilities and equipment.
Deals signed by Lockheed Martin last month indicate a shift in defense acquisition strategy aimed at rebuilding America’s industrial capacity to sustain high-intensity warfare.
The Raytheon deals aim to increase annual production of Tomahawk cruise missiles from the current rate of about 60 per year for the U.S. to eventually 1,000 units annually. The sea-launched Tomahawk, a mainstay of the Navy’s surface fleet, provides long-range precision strike capability against land targets from ships and submarines.