Lockheed Martin Corp.’s (LMT - Free Report) Space Systems business unit recently won a modification contract for supporting the production of Trident II (D5) missiles. The deal was awarded by the Strategic Systems Programs, Washington, D.C.
Valued at $494.9 million, the contract will entail provision of deployed systems support for these missiles. Majority of work related to the deal will be performed in Cape Canaveral, FL; Kings Bay, GA; Bangor, WA, and Sunnyvale, CA, while the entire task is scheduled to be completed by Sep 30, 2024.
Why Lockheed Martin?
Of late, increasing geopolitical conflicts, war, and terrorism across the globe have forced developing nations, the United States and other developed countries to boost their missile strength significantly. To this end, it is imperative to mention that America’s persistent tiff with nations like North Korea and Iran has been the primary reason behind solid demand for such missiles lately. Rising unrest in the Middle East nations, resulting in Saudi Arabia increasingly seeking military assistance from the United States, has also been a major contributor.
As a result, America, being the largest provider of missile defense systems, is witnessing increased number of contracts from the Pentagon as well as other U.S. allies for supplying combat-proven missiles. Being the largest defense contractor for the Pentagon, Lockheed Martin has been witnessing a huge inflow of significant contracts for its renowned missiles like the latest one.
With submarine-launched fleet ballistic missile (SLBM) being an integral part of the United States’ strategic nuclear deterrent Triad, Lockheed Martin’s Trident II offers the latest generation of SLBMs. The company thus hold a firm position in the U.S. missile market.
Since its design completion in 1989, Trident II has made 167 successful test launches — a record unmatched by any other large ballistic missile or space launch vehicle. This surely positions Lockheed Martin, Trident’s primary contractor, in a comparatively advantageous spot when it comes to the U.S. Navy’s preferred missile programs.
The global missiles and missile defense system market is projected to witness a CAGR of 2.32% during the 2018-2028 period, with North America acting as a key catalyst (per a GlobalData report). Such projections reflect increased growth opportunities for Lockheed Martin in the aforementioned market in the coming days.
Lockheed Martin apart, other major U.S. missile makers and those supporting missile defense systems like Raytheon (RTN - Free Report) , Northrop Grumman (NOC - Free Report) and Boeing (BA - Free Report) might benefit from this market growth.
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