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Boeing secures $14.7 billion contract to triple missile seeker production

Boeing has finalized a $14.7 billion deal with Lockheed Martin to drastically scale manufacturing of PAC-3 Missile Segment Enhancement seekers. The seven-year agreement aims to triple output capacity, supporting the Pentagon’s broader push to modernize defense capabilities and address a growing array of hypersonic and ballistic threats worldwide.

Boeing secures $14.7 billion contract to triple missile seeker production

The contract, issued as an undefinitized action, follows a framework agreement aimed at fortifying the U.S. defense industrial base. These Boeing-manufactured seekers serve as the critical 'eyes' of the Patriot interceptor system, allowing the missiles to track and engage complex targets, including cruise missiles and hostile aircraft.

Steve Parker, president and CEO of Boeing Defense, Space & Security, noted that early investments in factory infrastructure and supply chain resilience have enabled the company to reach these production targets. The ramp-up is already underway in Huntsville, Alabama, where the company has begun hiring to support the increased demand. Beyond facility upgrades, Boeing has overhauled its manufacturing controls to improve first-time quality, a necessity for sustaining the high-volume output required by the Department of War’s current acquisition strategy.

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