Raytheon awarded $250m contract for missile production in Japan

American defense supplier Raytheon has been awarded a $250 million contract from Japan's Mitsubishi Electric Corporation (MELCO) for the licensed production of the evolved sea sparrow missile (ESSM) Block 2.

Under the direct commercial sale contract, Raytheon will provide missile kits, parts, components, and technical support to MELCO for the production of the missiles in Japan.

The ESSM Block 2 is a short to medium-range, ship-launched guided missile with increased maneuverability over its predecessor, according to Raytheon.

The company said the newest variant reduces dependence on shipboard illumination and can be integrated with a wide variety of combat systems and launchers. It added that it also has significant digital processing margin to enable future software improvements.

Raytheon noted that the licensed production arrangement allows Japan to "enhance" its domestic defense manufacturing capabilities while reinforcing the security partnership between the US and Japan.

Japan is a customer nation of the ESSM program, which is managed by a twelve-nation NATO consortium.