Northrop Grumman (NYSE: NOC) has signed two multi-year framework agreements worth more than $3 billion to accelerate production of critical missile defence components and strengthen the United States’ integrated air and missile defence capabilities. The agreements, signed in collaboration with the US Department of War and Lockheed Martin, include a $2 billion framework agreement to accelerate production of components for the Patriot Advanced Capability-3 Missile Segment Enhancement (PAC-3 MSE) system and a $1 billion agreement to increase production of Terminal High Altitude Area Defense (THAAD) components.
Under the PAC-3 MSE agreement, Northrop Grumman will supply key components including solid rocket motors and ignition safety devices. The seven-year framework is designed to support increased production of PAC-3 MSE missiles for US forces and allied nations as global demand for integrated air and missile defence systems rises.
The THAAD agreement will enable Northrop Grumman to significantly increase monthly deliveries of critical components over a seven-year period. The company said production capacity is expected to increase substantially to meet growing requirements for the missile defence programme.
“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,” said Ben Davies, corporate vice president, Northrop Grumman. “As one of America’s leading producers of solid rocket motors, we’re supporting the administration’s push to accelerate munitions output.”
Northrop Grumman has been expanding its manufacturing capacity since 2021. The company has doubled solid rocket motor production capacity at its Utah facilities, nearly tripled capacity at its Allegany Ballistics Laboratory in West Virginia and increased capacity by 25% at its Elkton, Maryland facility.
At the Allegany Ballistics Laboratory, the company plans to triple tactical solid rocket motor production capabilities by 2027. The expansion is expected to support the US. Army’s plans to increase annual PAC-3 MSE missile production from about 600 units to thousands in the coming years.
Northrop Grumman has supplied critical components for THAAD since 2002, including interceptor shell cores, aft bulkheads and heat shield assemblies. Its San Diego facility supports high-volume production of structural components for defence and aerospace applications.
The company has invested more than $2 billion in munitions-related technologies and facilities since 2019, including more than $1 billion in solid rocket motor production. 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.
