This past month, Tucson-based Raytheon Missile Systems was awarded multiple defense contracts to expand its engineering of missiles for the military.
Among its many contracts is a $419 million contract with the U.S. Air Force and Navy to continue development and revitalization of the AIM-9X Sidewinder missile, which can be used in air combat, surface attack missions, and more. These missiles can be used on a wide fleet of planes, including the F-15, F-16, F-22, and more. In other words, these missiles are integral to Air Force and Navy aerospace missions.
“We enable the world’s great platforms to do their job, meaning a fighter aircraft in effect is a very fast truck in a battle space,” Raytheon spokesman John Patterson said. “Without missiles, it doesn’t have any teeth. The missiles that hang on the wing allow pilots to complete the mission and return home safely, so they’re very important to the people who serve our military and protect our country.”
The second-largest contract is a $200 million deal for Excalibur Ib projectiles, which will be the most precise and longest-reaching projectile that the U.S. Army and Marine Corps have ever utilized.
In addition to these gargantuan contracts, Raytheon also secured five contracts around $20 million each for additional missile production. Most of the production will take place in Tucson, Arizona, where Raytheon Missile Systems is headquartered.
Raytheon has an annual economic impact of roughly $2.1 billion in Arizona and employs almost 12,000 people in Southern Arizona. In addition to keeping the country safe from potential dangers, the new contract will help Raytheon Missile Systems expand the company and increase their economic impact.
Because Raytheon Missile Systems is one of the world’s largest defense manufacturers, it is no surprise that the military is tapping the company for this cluster of contracts.
“We have customers worldwide, but our primary customer is the Department of Defense,” Patterson said. “We build products for all branches of service, whether it’s the army, navy, marine corp, air force — you name it, the military carries products built by Raytheon Missile Systems. Our products are considered the best in the world, and they create a shield of protection for our troops.”
These military contracts are certainly great for business; in fact, in the past six months, Raytheon’s share price (RTN) has risen over 5 percent.
But more importantly, these contracts are crucial for keeping our troops safe and giving them the tools to safely and successfully complete missions. “It’s important to us to give our men and women an unfair advantage so they can fight and return home safely,” Patterson said.
Photo courtesy of Kongsberg