Lockheed Martin said on Monday it had secured a contract worth up to $1.2 billion from the US Army to produce the increment 2 variant of the precision strike missile (PRSM).
PRSM is the Army's next-generation long-range precision strike weapon, designed to replace the army tactical missile system, or ATACMS.
Lockheed Martin said the award follows a second successful flight test of the missile's increment 2 variant, which demonstrated its ability to engage moving maritime targets.
The contract comes as Lockheed ramps up production of the precision strike missile amid rising demand for long-range strike weapons.
In March, the defence giant signed a seven-year agreement with the US Department of War to increase annual production capacity to 550 missiles, building on a $4.94 billion Army contract awarded last year and following the weapon's first combat use during Operation Epic Fury.
Earlier this month, Lockheed was also awarded a contract modification worth around $257 million by the US Navy for the manufacture of components and spares as well as hardware repairs of Mk 48 MOD 7 heavyweight torpedoes.
(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Jonathan Ananda, Baird Maritime)
