Lockheed Martin Corporation (LMT - Free Report) acquired orders for the production of external tanks for powering LNG driven vessels. The company is all set to build an LNG facility in Louisiana. Lockheed undertook this initiative to meet the rising demand for LNG tanks used for storage and transportation of cryogenic materials for Space Shuttle programs.
The company intends to employ its technologies originally designed for government programs in areas of national energy and economic priorities.
The external tanks or ETs are basically gas tanks that consist of the propellants used by the Space Shuttle Main Engines. It also provides structural support for the attachment with solid rocket boosters and orbiter.
As per the long-term business strategy, the company will be involved in the manufacturing of the equipment that is used for the production of the external tanks and for a varied range of LNG supply chain purposes. Lockheed will also lend its expertise for developing ancillary programs like spanning propellant handling; assembly, test and integration; composites manufacturing, production facility and tooling design.
The company has the skill and means to produce tanks of different sizes and capacities for multiple modes of transportation like land, rail, water systems and land-based LNG storage.
Lockheed has a long association with National Aeronautics and Space Administration ("NASA") as the company is its primary supplier of external tanks. The company in 2010 had received a contract extension for the bulk delivery of these tanks.
Lockheed’s aerospace division is expected to perform well with these diversified contract acquisitions. It recently clinched a $284.4 million fixed-price deal for the procurement of lead parts for the fifth and sixth Geosynchronous Earth Orbit (“GEO”) satellites under the Space Based Infrared System (“SBIRS’) missile warning group.
Lockheed intends to capitalize heavily from the applications of defense- and space-related technology in the private sector and from the economic advantages of natural gas while complying with pro-environment rules. The company stands to gain from its $18.1 billion backlog order from the Space Systems segment. Also, its debt control initiatives and effective share repurchase programs will act as tailwinds. Lockheed currently retains a Zacks Rank #2 (Buy).
Other Zacks Ranked #2 stocks currently doing well include The Boeing Company (BA - Free Report) , Alliant Techsystems Inc. and Rockwell Collins Inc. (COL - Free Report) .
Headquartered in Bethesda, MD, Lockheed Martin Corporation, a security and aerospace company, engages in the research, design, development, manufacture, integration, and sustainment of advanced technology systems and products.