UNITED STATES OF AMERICA —L3Harris Technologies has received a seven-year undefinitized contract award from Lockheed Martin valued at $4.7 billion for propulsion systems used in the PAC-3 Missile Segment Enhancement (MSE) interceptor. The award is the company’s largest PAC-3 propulsion contract to date and is aligned with a long-term framework agreement established with the Department of War.
The programme covers production of several critical propulsion components for the MSE interceptor, including its two-pulse solid rocket motor, Lethality Enhancer and Attitude Control Motors. The scale and duration of the award provide L3Harris with a substantial production commitment tied to continued PAC-3 interceptor manufacturing.
To support higher output, L3Harris is developing two new production facilities at its Camden, Arkansas, site. The facilities are expected to become operational in 2027 and are intended to increase onsite production, improve manufacturing throughput and modernize solid rocket motor manufacturing capabilities.
The Camden expansion forms part of a broader investment programme across L3Harris’ propulsion manufacturing footprint. The company is investing billions of dollars and plans to construct approximately 60 new facilities while adding or upgrading nearly 1 million square feet of manufacturing and office space across Alabama, Arkansas and Virginia.
The expansion is significant for the US defence industrial base because PAC-3 MSE production depends on specialized propulsion manufacturing capacity and associated inspection capabilities. Earlier investments at Camden, including dedicated production bays and automated digital X-ray systems, provide additional infrastructure for scaling output and supporting quality-control requirements.
For defence suppliers, the award creates longer-term demand visibility for missile propulsion manufacturing and related industrial capabilities. It may also support additional activity across the US aerospace and defence supply chain as L3Harris expands facilities, equipment and production capacity in multiple states.
For businesses and investors, the combination of a $4.7 billion multi-year award and large-scale capacity expansion signals sustained production requirements for PAC-3 propulsion systems. The investment also indicates that L3Harris is positioning its manufacturing network for higher munitions output over the longer term, rather than relying solely on existing production infrastructure.
L3Harris Technologies is a US defence technology company supplying systems and components for aerospace, missile, communications and national-security applications. Lockheed Martin is a major US aerospace and defence contractor and the prime contractor responsible for the PAC-3 missile system.
