Sky's The Limit: RTX's Raytheon JV Pockets Massive NATO Contract For Patriot Missiles

COMLOG, a joint venture between RTX Corp's RTX Raytheon and MBDA Germany, won the first contract under the European Sky Shield Initiative (ESSI).

With a total value of up to $5.6 billion, the NATO Support and Procurement Agency (NSPA) contract supports a coalition of nations, including Germany, the Netherlands, Romania and Spain, with a combined quantity of up to 1,000 Patriot GEM-T missiles, if all options are exercised.

GEM-T missiles are a primary effector for the combat-proven Patriot air and missile defense system

The contract entails the qualification of updated components, the addition of new suppliers, test equipment, and spares to help future sustainment. 

COMLOG plans to boost the production capacity of GEM-T missiles in Europe, which is projected to enhance the security of supply and will contribute to the replenishment of Patriot air defense missile inventories. 

"Raytheon and MBDA have partnered with NSPA, the United States Army and a broad network of suppliers across the region to offer our European partners a GEM-T program which increases NATO's air defense missile inventory, strengthens NATO deterrence, and sustains the operational readiness of Patriot air defense systems across Europe. This bundled procurement strengthens cooperation among European Patriot allies," said Thomas Laliberty, President, Raytheon Land & Air Defense Systems.

Also Read: RTX Wins Contract For Raytheon's One-Box Solution & Antenna Systems To Defeat Airborne Threats At The Speed Of Light

"The order volume will enable MBDA to set up a production facility for Patriot missiles in Germany, as well as major subcomponent production. The COMLOG facility is currently the only one of its kind for the Patriot missile outside the U.S.," stated Thomas Gottschild, Managing Director MBDA Deutschland.

Also, RTX's Raytheon won a $400 million contract from the U.S. Air Force to produce and deliver more than 1,500 StormBreaker smart weapons.

Price Action: RTX shares are trading higher by 1.56% at $86.55 on the last check Wednesday.

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