Lockheed wins US Army missile contract worth up to $1.2 billion
Lockheed wins US Army missile contract worth up to $1.2 billion Sept 21 (Reuters) - Lockheed Martin LMT.N said on Monday it had secured a contract worth up to $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 defense giant signed a seven-year agreement with the US Department of War to increase annual production capacity to 550 missiles, building on a $4.94 billion Army contract awarded last year and following the weapon's first combat use during Operation Epic Fury.
(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Jonathan Ananda)
((Aatreyee.Dasgupta@thomsonreuters.com;))
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