(RTTNews) - Northrop Grumman Corp. (NOC), a U.S. aerospace and defense technology company, on Monday said it signed two multi-year framework agreements worth more than $3 billion with the U.S. Department of War and Lockheed Martin to accelerate production of missile interceptor components.
Under the larger $2 billion agreement, Northrop Grumman will supply solid rocket motors and ignition safety devices for the Patriot Advanced Capability-3 Missile Segment Enhancement (PAC-3 MSE) missile.
A separate $1 billion framework agreement will enable Northrop Grumman to significantly increase monthly deliveries of components for the Terminal High Altitude Area Defense (THAAD) system over the next seven years.
The company said it has expanded manufacturing capacity through investments made since 2021, including doubling solid rocket motor production capacity at its Utah facilities, nearly tripling capacity at the Allegany Ballistics Laboratory in West Virginia, and increasing capacity by 25% at its Elkton, Maryland, facility.
Northrop Grumman has invested more than $2 billion in munitions-related technologies and facilities since 2019, including more than $1 billion dedicated to solid rocket motor production.
"Our long-term investments in breakthrough manufacturing technologies and resilient supply chains let us pivot from steady production to a production surge in record time. As one of America's leading producers of solid rocket motors, we're supporting the administration's push to accelerate munitions output. It's a mission-critical leap forward that ensures America's defense edge stays sharper, faster, and farther ahead of global threats," said Ben Davies, corporate vice president Northrop Grumman.
Northrop Grumman shares were up nearly 1% in pre-market trading after closing at $542.48 on Friday.
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