ARLINGTON (dpa-AFX) - BAE Systems plc (BA.L, BAESY), a defense, security, and aerospace company, said Wednesday that it has signed a seven-year framework agreement with the U.S. Department of War.
The agreement aims to quadruple production capacity and accelerate delivery of infrared seekers for the Terminal High Altitude Area Defense interceptor missile.
The company said that the production work on the THAAD seekers will be carried out at the company's facilities in Nashua, New Hampshire, and Endicott, New York.
The agreement supports increased annual production of the seekers, which provide critical sensing and guidance capabilities for THAAD systems used to counter ballistic missile threats.
The company said the deal is part of efforts to deliver defense technologies at greater speed and scale, in line with the department's acquisition strategy.
The company added that it will continue to invest in expanding manufacturing capacity, technology, and workforce to support long-term, high-volume production.
BAE Systems is currently trading 0.90% higher at GBp 2,147 on the London Stock Exchange.
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