BETHESDA (dpa-AFX) - Aerospace and defense major Boeing Co. (BA) announced that it has received an undefinitized contract action worth around $14.7 billion by Lockheed Martin Corp. (LMT) to triple production of PAC-3 Missile Segment Enhancement or MSE seekers.
The contract formalizes the previously announced seven-year framework deal with the U.S. Department of War in support of Pentagon's Acquisition Transformation Strategy and to strengthen the nation's Arsenal of Freedom.
Boeing noted that its seekers enable the most advanced Patriot interceptors to identify, track and engage advanced threats ranging from hostile aircraft to hypersonic, ballistic and cruise missiles.
Steve Parker, president and CEO of Boeing Defense, Space & Security, stated, 'Early investment and a relentless focus on quality and execution have positioned us to now deliver seekers at unprecedented levels in the near-term, and we're committed to building on that momentum. Our Boeing teammates could not be prouder of the role they play in protecting U.S. and allied service members, civilians and critical infrastructure worldwide.'
Boeing said it recently invested capital to expand its PAC-3 seeker factory, and strengthened supplier relationships for a more agile, affordable, resilient and scalable supply chain. The firm also modernized facilities with cutting-edge technology, and improved processes and controls to increase first-time quality.
The company has already started production ramp-up and related hiring following the framework agreement announcement. Hundreds of direct and indirect jobs are expected to be created in the Huntsville, Alabama, area as a result of the contract.
In the overnight activity on the NYSE, Boeing shares were gaining around 0.30 percent, trading at $193.29, while LMT is gaining around 0.27%, at $508.00.
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