Lockheed Martin Corp.’s (LMT - Free Report) business subsidiary, Lockheed Martin Sippican Inc., recently procured a modification contract for the production of Mk 48 Mod 7 guidance and control (G&C) sections and Mk 48 Mod 7 Common Broadband Advanced Sonar System (CBASS). The company will also produce Functional Item Replacement (FIR) kits, spares and production support material, apart from offering related engineering services and hardware repair support, for G&C sections and CBASS kits.
Valued at $56.9 million, the contract was awarded by the Naval Sea Systems Command, Washington, DC. Majority of the work, related to the deal will be performed in Marion, MA, and is scheduled to get completed by March 2021.
A Brief on Lockheed Martin’s CBASS Torpedo
The MK 48 Mod 7 CBASS is an upgraded version of the MK 48 Advanced Capability (ADCAP) Mod 6 Advanced Common Torpedo (ACOT), manufactured by Raytheon (RTN - Free Report) . At present, Lockheed Martin’s MK 48 Mod 7 CBASS torpedo is the U.S. Navy’s most potent anti-surface and anti-submarine weapon in use aboard allied submarines.
The torpedo has been designed to be exceedingly lethal and effective against threats operating in deep and shallow waters. The broadband sonar enhancement makes the torpedo more effective against emerging submarine classes in the harshest of acoustic environments. The CBASS torpedo also has the ability of multiband operation, providing the Navy a critical combat advantage.
What Favors Lockheed Martin?
In recent times, heightened geo-political tensions looming across the globe and rapid modernization of China’s submarine fleet have compelled the United States to modernize its naval defense. This has prompted the nation to significantly expand its defense spending. Consequently, Lockheed Martin witnesses a solid flow of contract from Pentagon, like the latest one, as it is one of the major manufacturers for maritime combat, undersea warfare missiles and torpedoes.
Per Technavio, the global torpedo market is expected to reach $11 billion by 2022, driven by the advancement in underwater warfare technology. This, in turn, will increase demand for torpedoes and other related technical services. The increased production of light weight torpedoes is likely to significantly boost the torpedo market, going forward. Lockheed Martin along with other key torpedo manufacturers like Honeywell International (HON - Free Report) , Raytheon and Northrop Grumman (NOC - Free Report) is most likely to benefit from such favorable projections in the days ahead.
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