Northrop Grumman signs over $3 billion in munitions framework agreements

The deals include a $2 billion PAC-3 MSE arrangement and a $1 billion THAAD component pact aimed at lifting output for U.S. and allied air and missile defense needs.

Summary

Northrop Grumman said it has signed two multi-year framework agreements worth more than $3 billion to expand munitions production and speed deliveries for integrated air and missile defense programs. The company said the agreements, undertaken with the U.S. Department of War and Lockheed Martin, cover a $2 billion effort tied to Patriot Advanced Capability-3 Missile Segment Enhancement, or PAC-3 MSE, and a $1 billion arrangement to raise Terminal High Altitude Area Defense, or THAAD, component output over seven years. Northrop Grumman said it will supply PAC-3 MSE solid rocket motors and ignition safety devices while scaling production capacity across facilities in Utah, West Virginia and Maryland. The company said investments made since 2021 have doubled solid rocket motor delivery capacity in Utah, nearly tripled capacity at Allegany Ballistics Lab in West Virginia, and increased capacity by 25% at Elkton, Maryland. It added that U.S. Army PAC-3 MSE missile output is set to grow from roughly 600 units annually to thousands in the near term for U.S. forces and allied partners.

Terms & Concepts
  • PAC-3 MSE: An upgraded Patriot interceptor missile variant.
  • solid rocket motor: Rocket propulsion unit using solid fuel.
  • THAAD: U.S. missile defense system for high-altitude intercepts.