Raytheon, $ 1 billion strategic Bargain Hit for Standard Missile programs (Image Credit: SNN)
TUCSON, Ariz., March 26, 2020 / / PRNewswire/ — Raytheon Company’s (NYSE: RTN) Missile Systems business has reached a $1 billion, five-year strategic arrangement to buy propulsion systems from Aerojet Rocketdyne for Standard Missile products. The deal represents a supply chain centerpiece of Standard Missiles contracts that Raytheon recently obtained.
“Moving to multi-year, instead of annual-year contracting enables Raytheon and its own supply chain to provide much more value to our Missile Defense Agency and U.S. Navy customers, and the taxpayer,” explained Eugene Jaramillo, Raytheon Missile Systems vice president of Global Supply Chain Management. “These agreements also allow our suppliers to alter the way they do business with Raytheon.”
Propulsion systems crossing Raytheon’s Standard Missile family are provided by aerojet Rocketdyne. For the SM-2(TM) missile, SM-3(R) interceptor and SM-6(R) missile, Aerojet Rocketdyne supplies the majority of the solid rocket motors for all these systems. In addition, for SM-3, the company produces the Divert and Attitude Control System, a high-precisionpropulsion system that positions the interceptor.
“Aerojet Rocketdyne has supported one or more variants of the Standard Missile program for more than three decades; we are proud of our contributions to those vital defense goods,” explained Eileen Drake, Aerojet Rocketdyne CEO and president. “This significant arrangement on terminal contracts strengthens our present relationship and rankings Aerojet Rocketdyne favorably for future business opportunities and continued expansion.”
Work on the programs will likely be spread in Orange County, Virginia, the Solid Rocket Motor Center of Excellence at Camden, Arkansas, also in its Advanced Manufacturing Facility in Huntsville, Alabama. SM-2 is produced by raytheon in Tucson, also SM-3 and SM-6 at Huntsville.
Having a history of innovation spanning 98 years, Raytheon provides innovative electronic equipment, mission systems integration, C5I(R) products and services, sensing, effects, and mission support for customers in over 80 nations. Raytheon is headquartered in Waltham, Massachusetts. Follow us on Twitter.
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SOURCE Raytheon Company