Boeing and Lockheed Martin Sign $14.7 Billion Contract to Expand PAC-3 MSE Production

Boeing and Lockheed Martin have signed a seven-year contract worth about $14.7 billion to expand production and deliveries of the PAC-3 Missile Segment Enhancement (MSE).

According to Reuters, the deal was announced in a statement by Boeing.

The agreement will allow the company to triple production of PAC-3 MSE seekers — the component of the missile's guidance system that detects, tracks and helps intercept approaching targets.

In January, Lockheed Martin announced a seven-year framework agreement with the U.S. Department of Defense to increase annual production capacity of PAC-3 interceptor missiles from 600 to 2,000 units.

These arrangements are part of a broader initiative by President Donald Trump's administration to ramp up weapons production in the United States.