Northrop Grumman expands PAC-3 MSE and THAAD production under USD 3 billion defence agreements

Northrop Grumman has secured framework agreements exceeding USD 3 billion to expand production of PAC-3 MSE propulsion systems and THAAD components. The multi-year effort will increase missile manufacturing capacity across multiple U.S. facilities, supporting higher procurement requirements for the U.S. military, Lockheed Martin missile programs and allied nations.

Northrop Grumman has entered into two multi-year framework agreements valued at more than USD 3 billion to expand manufacturing capacity for key U.S. missile defence programs, according to an official company statement. The agreements support PAC-3 Missile Segment Enhancement (PAC-3 MSE) and Terminal High Altitude Area Defense (THAAD) programs, with Northrop Grumman working alongside the U.S. Department of war and Lockheed Martin, the prime contractor for both missile defence systems.

Under the agreements, Northrop Grumman will accelerate production of PAC-3 MSE missiles by supplying additional solid rocket motors and ignition safety devices while expanding propulsion manufacturing capabilities. Production capacity for solid rocket motors will double at the company's Utah facilities, nearly triple at the Allegany Ballistics Laboratory in West Virginia, and increase by 25% at its Elkton, Maryland facility. The Allegany site will also significantly expand PAC-3 MSE solid rocket motor output to support higher missile production volumes.

The company will also significantly increase monthly deliveries of THAAD interceptor components over the next seven years, including interceptor shell cores, aft bulkheads and heat shield assemblies. The expanded production base is expected to strengthen the supply chain supporting integrated air and missile defence programs for the United States and allied nations.

The investment is expected to help increase annual PAC-3 MSE missile production from roughly 600 units to several thousand, improving production capacity and delivery schedules for future defence procurement. The expansion is also expected to benefit the wider defence manufacturing ecosystem, including suppliers of propulsion systems, advanced materials and precision-engineered components.

Northrop Grumman is a U.S.-based aerospace and defence company that develops aircraft, missile systems, space technologies and advanced defence solutions for government customers worldwide. Lockheed Martin is a U.S. defence contractor and the prime contractor for the PAC-3 MSE and THAAD missile defence systems, integrating the overall platforms while working with suppliers such as Northrop Grumman for critical propulsion and structural components.