The Missile System unit of Raytheon Company (RTN) yesterday started construction of an all-up-round Standard Missile production facility in Huntsville, Alabama. The construction will come up on the U.S. Army's Redstone Arsenal site.
Raytheon said it will construct the 70,000 square-foot production facility in two phases; each phase will be tied to SM-3 and SM-6 production contracts. Raytheon's SM-3 is the centerpiece of the nation's new missile defense strategy in Europe, and SM-6 will give the U.S. Navy a new, much-needed weapon system.
SM-3 is being developed as part of the MDA's sea-based Aegis Ballistic Missile Defense system. The missiles are deployed on U.S. Navy cruisers and destroyers and Japanese destroyers to defend against short- to intermediate-range ballistic missile threats in the ascent and midcourse phases of the flight.
SM-6 is an extended range of anti-air warfare missile. Fired from navy ships, SM-6 provides capabilities against fixed- and rotary-wing aircraft, unmanned aerial vehicles and cruise missiles.
Raytheon will use the state-of-the-art facility to provide final assembly and testing for Raytheon's SM-3 and SM-6 missiles. By building this new facility Raytheon expects to provide the Missile Defense Agency and its U.S. Navy customers with even greater capability.
Additionally, this new Raytheon facility will provide more jobs for Alabama and clearly demonstrates Raytheon's strong partnership with the state.
Raytheon currently retains a Zacks #3 Rank (short-term Hold rating). The company competes with the likes of Lockheed Martin Corporation (LMT) and L-3 Communications Holdings Inc. (LLL).
Based in Massachusetts, Raytheon Company deals with a diversified line of military products, including missiles, radars, sensors, surveillance and reconnaissance equipment, communication and information systems, naval systems, air traffic control systems and technical services.
L-3 COMM HLDGS (LLL): Free Stock Analysis Report
LOCKHEED MARTIN (LMT): Free Stock Analysis Report
Be the first to comment