U.S. Navy Signs Huge Order to Supplement Ammunition Stockpile

Reference News Network, October 4 According to a report by Reuters on October 1, the U.S. Navy announced on the 1st that Raytheon Company, a subsidiary of Raytheon Technologies, has secured a multi-year contract worth up to $24.4 billion to produce Standard-6 interceptors for the U.S. Navy. The Pentagon is currently accelerating the replenishment of ammunition stocks depleted due to conflicts in the Middle East.

The Navy stated that this 5-year contract also includes a 2-year optional extension, aimed at ensuring a stable supply of Standard-6 missiles. This type of missile possesses both offensive strike capabilities and missile defense capabilities.

This Standard-6 order is the latest in a series of large ammunition contracts awarded by the Pentagon this year, intended to pressure contractors to ramp up production. Prior to this, Raytheon Company secured a multi-year interim contract worth $20.7 billion for AIM-120 AMRAAM air-to-air missiles in late September, and in July, Lockheed Martin received a $58.6 billion contract for Patriot interceptor missiles.

Reports indicate that such production agreements are designed to incentivize contractors to accelerate expansion, as part of the U.S. government's strong push to prioritize weapon production over shareholder returns.

Industry executives have warned that Congress has yet to allocate funding for the aforementioned contracts. This means that contractors may not be able to make large-scale investments in components and production facilities until lawmakers complete the appropriations process.

Raytheon Technologies stated that the company has invested significant resources to meet the growing demand. The company has expanded its skilled workforce, deepened collaboration within the defense industrial base, advanced production automation, and focused on significantly increasing capacity to meet both short-term and long-term needs.

Raytheon Company stated that the Standard-6 is the only weapon that has been battle-tested and can perform air defense, anti-ship, and ballistic missile defense missions. It can be launched from various naval vessels as well as from land-based launch systems. (Translated by Liu Zongya)