Northrop Grumman Corporation (NYSE: NOC) has entered into two multi-year framework agreements valued at more than $3 billion to expand production and accelerate deliveries of critical missile defence technologies for the United States and its allies. The agreements, developed in collaboration with the US Department of War and Lockheed Martin, will support increased production of components for the Patriot Advanced Capability-3 Missile Segment Enhancement (PAC-3 MSE) and Terminal High Altitude Area Defense (THAAD) systems.
Under a $2 billion framework agreement, Northrop Grumman will increase production of key PAC-3 MSE components, including solid rocket motors (SRMs) and ignition safety devices. The initiative is designed to meet growing demand for the interceptor and strengthen integrated air and missile defence capabilities.
A separate $1 billion, seven-year agreement will enable the company to substantially increase monthly deliveries of THAAD components, with production expected to rise significantly over the course of the programme. Northrop Grumman has been expanding its manufacturing capacity through investments made since 2021. The company has doubled tactical solid rocket motor capacity at its Allegany Ballistics Laboratory (ABL) in Rocket Center, West Virginia, and plans to triple production capabilities there by 2027.
Capacity has also been doubled at its Utah facilities and increased by 25% at its Elkton, Maryland, facility. These investments are intended to support the US Army’s planned increase in annual PAC-3 MSE missile production from approximately 600 units to thousands in the near term for US forces and allied partners.
Ben Davies, corporate vice president, Northrop Grumman, said: “Our long-term investments in advanced manufacturing and resilient supply chains allow us to move from steady production to a significant increase in output when required. As a major producer of solid rocket motors, we are supporting efforts to expand munitions production and deliver the capacity needed for integrated air and missile defence.”
Northrop Grumman has supplied critical THAAD components since 2002, including interceptor shell cores, aft bulkheads and heat shield assemblies. Its San Diego facility brings decades of experience in high-volume production of structural components.Since 2019, Northrop Grumman has invested more than $2 billion in munitions-related technologies and facilities, including over $1 billion in solid rocket motor production. The company has more than 70 years of propulsion experience and has delivered over 1.3 million solid rocket motors.
Northrop Grumman has delivered more than 1.3 million solid rocket motors during its more than 70-year propulsion history. The latest agreements build on these investments and are aimed at expanding production capacity, strengthening supply chains and supporting faster delivery of missile defence systems to US and allied customers.
