Boeing says it's ramping up seeker production as Patriot demand surges
Aug 7 (Reuters) -Boeing BA.N on Wednesday said it has been ramping up its production of PAC-3 seekers - critical components used in Patriot interceptors - to meet the surge in demand for the missile defense system.
The company said it was on pace to break its annual seeker production record by over 20% by the end of the year.
The United States' plan to boost production of Patriot air defence missiles at Japanese factories hit a roadblock due to shortage of these critical component manufactured by Boeing.
Japan's Mitsubishi Heavy Industries 7011.T makes about 30 PAC-3 missiles each year under license from defence contractor Lockheed Martin LMT.N, and plans to increase that number to around 60.
The expansion is not possible without additional supply of seekers, essential for guiding the missiles in their final flight stages.
Last year, Boeing began expanding its seeker factory in the United States to increase production by 30%, though the new lines would not be operational until 2027.
Patriot missile defense systems are in high demand, with their use in Ukraine to counter Russian attacks and in the Middle East due to the threat from Iran.
Reporting by Pratyush Thakur in Bengaluru; Editing by Maju Samuel
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
