Lockheed wins US Army missile contract worth up to US$1.2 billion

BENGALURU: Lockheed Martin said on Monday it had secured a contract worth up to US$1.2 billion from the US Army to produce the Increment 2 variant of the Precision Strike Missile (PrSM).

PrSM is the Army's next-generation long-range precision strike weapon, designed to replace the Army Tactical Missile System, or ATACMS.

Lockheed Martin said the award follows a second successful flight test of the missile's Increment 2 variant, which demonstrated its ability to engage moving maritime targets.

The contract comes as Lockheed ramps up production of the Precision Strike Missile amid rising demand for long-range strike weapons.

In March, the defence giant signed a seven-year agreement with the US Department of War to increase annual production capacity to 550 missiles, building on a US$4.94 billion Army contract awarded last year and following the weapon's first combat use during Operation Epic Fury.