Raytheon Co.’s Missile Systems business said it has reached a $1 billion, 5-year strategic agreement to purchase propulsion systems from Aerojet Rocketdyne for Standard Missile products.
“Moving to multi-year, rather than annual-year contracting enables Raytheon and its supply chain to deliver even more value to our Missile Defense Agency and U.S. Navy customers, and the taxpayer,” said Eugene Jaramillo, Raytheon Missile Systems vice president of global supply chain management.
“These multi-year agreements also allow our suppliers to transform the way they do business with Raytheon,” he added.
Aerojet Rocketdyne provides propulsion systems spanning Raytheon’s Standard Missile family including the SM-2 missile, SM-3 interceptor and SM-6 missile. The company also produces the Divert and Attitude Control System for the SM-3.
“Aerojet Rocketdyne has supported one or more variants of the Standard Missile program for more than three decades. We are proud of our contributions to these vital defense products,” said Eileen Drake, Aerojet Rocketdyne CEO and president. “This significant agreement on multi-year contracts strengthens our current relationship and positions Aerojet Rocketdyne favorably for future business opportunities and continued growth.”
