L3Harris Technologis (NYSE: LHX) has signed its largest-ever PAC-3 propulsion agreement, a seven-year framework deal with the US Department of War and Lockheed Martin that is expected to nearly triple production of key propulsion systems for the PAC-3 Missile Segment Enhancement (MSE) interceptor.
The agreement strengthens L3Harris’ position in the US missile propulsion market and provides a long-term production opportunity as the US and allied nations seek to expand inventories of critical defence systems. The contract is expected to be finalized later this year.
Under the framework, L3Harris will manufacture the PAC-3 MSE’s advanced two-pulse solid rocket motor, Attitude Control Motors (ACMs) and Lethality Enhancers. The company said the agreement will enable production rates significantly above current levels and support rising procurement requirements from the US government and its allies.
“This critical, long-term agreement will allow us to continue to move at unprecedented speed and produce PAC-3 propulsion at rates never before seen,” said Ken Bedingfield, President, Missile Solutions, L3Harris. “We are actively preparing our facilities and suppliers to meet the required ramp, while adding capacity to support future needs of the Department of War and our allies.”
The agreement is expected to drive higher utilization of L3Harris’ solid rocket motor manufacturing network and support further investment in production capacity. The company is investing billions of dollars across its propulsion operations in Alabama, Virginia and Arkansas to meet growing demand.
L3Harris is constructing about 60 facilities and adding or upgrading nearly one million square feet of manufacturing and office space across its solid rocket motor production sites. These investments are aimed at increasing output, improving production efficiency and strengthening the company’s ability to respond to large-scale procurement programmes.
At its PAC-3 MSE motor facility in Camden, Arkansas, L3Harris has expanded dedicated processing areas and introduced automated digital X-ray inspection equipment. The upgrades are designed to improve manufacturing throughput while reducing inspection and production cycle times.
The latest agreement adds to L3Harris’ growing defence production backlog and reinforces its focus on high-demand missile and propulsion programmes. With governments increasing spending on air and missile defence, the company expects expanded manufacturing capacity to support both near-term production growth and future programme requirements.
