Lockheed Martin Corp [NYSE: LMT] recently revealed that its space system unit was awarded a $254.7 million FMS deal. The follow on foreign military sales contract was provided by the Missile Defense Agency. As per the terms of the contract, Lockheed Martin will provide maintenance and sustenance services for the defense forces of the UAE.
The services will be provided for two THAAD batteries and will include logistics management, product database, training, missile, and ground repair. Work operations related to the contract will be executed in Sunnyvale, CA; Grande Prairie, TX; Huntsville, AL, and others.
THAAD ( Terminal High Altitude Area Defense) by Lockheed Martins is an integrated defensive missile system specifically designed to protect against ballistic missile threats above sea level. THAAD batteries have a well-established market in the US and these batteries have also been distributed to UAE, Japan, SouthKorea, Israel, and SA.
The prerequisite for THAAD has been ascending as the Army keeps on integrating the framework with the Patriot Air-and-Missile Defense system to construct a missile defense architecture that is strong.
The U.S. government’s financial 2021 defense spending includes spending of $916 million on the THAAD ballistic missile defense systems. Such overpowering spending provisions, thusly, should introduce more agreements for Lockheed Martin’s THAAD batteries.
The geopolitical scenario is favorable for the growth of the missile market. Keeping in view the U.S’s large defense budget and the US is the largest exporter of military equipment gives benefit to other missile makers. Famous missile makers such as The Northrop Gruman, General Dynamics, and Raytheon Technologies are primed to gain.