Raytheon has secured a $250 million agreement with Mitsubishi Electric Corporation (MELCO) for the licensed manufacturing of the Evolved SeaSparrow Missile (ESSM) Block 2 in Japan.
The agreement falls under a direct commercial sale. MELCO will produce the advanced naval munition in its local plants using missile kits, parts, components, and technical assistance provided by Raytheon.
Amid rising regional tensions, the deal strengthens Japan’s missile production and defense capabilities while also bolstering a larger security pact between Tokyo and Washington.
Additionally, it helps Raytheon increase its presence in the defense market of the Asia-Pacific.
“Decades of cooperation have culminated in this novel licensed manufacturing arrangement,” stated Barbara Borgonovi, president of Raytheon’s Naval Power division.
