Raytheon Secures $250M Contract from MELCO for ESSM Block 2 Production

Key Takeaways

Raytheon has secured a $250 million contract with Japan’s Mitsubishi Electric Corporation for producing ESSM Block 2 missiles.
This contract enhances Japan’s domestic defense manufacturing and bolsters the U.S.-Japan security alliance.
ESSM Block 2 offers improved maneuverability and performance, designed to meet evolving maritime threats.

Contract Details and Impact

Raytheon has been awarded a $250 million contract by Japan’s Mitsubishi Electric Corporation (MELCO) for the licensed production of the ESSM Block 2 missile. Under this Direct Commercial Sale contract, Raytheon will supply missile kits, components, and technical support to MELCO, facilitating local missile production in Japan.

“This innovative licensed production arrangement is the culmination of decades of partnership,” stated Barbara Borgonovi, president of Naval Power at Raytheon. She emphasized that as Japan invests in this critical weapon system, it will not only enhance its defense capabilities but also fortify the essential security alliance between the United States and Japan.

Raytheon and MELCO have collaborated for over 50 years on various defense programs, making this contract a significant milestone in their partnership. The initiative allows Japan to boost its domestic defense manufacturing and missile defense capabilities while reinforcing the broader U.S.-Japan security framework.

The ESSM Block 2 is a versatile short to medium-range, ship-launched, dual-mode guided missile that offers enhanced maneuverability compared to its Block 1 predecessor. Key improvements include a reduced reliance on shipboard illumination and better compatibility with many combat systems and launchers. This enables improved performance in challenging maritime environments and ensures the missile can adapt to evolving threats through software upgrades.

Japan is a customer nation for the ESSM, which falls under the management of the NATO SEASPARROW Consortium, comprising 12 member nations. As Japan continues to develop its defense systems, this contract represents a significant step in enhancing its military capabilities.

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