Bethesda, Maryland-based Lockheed Martin Corporation was awarded a $2.4 billion Pentagon contract on Monday for THAAD interceptor missiles, some of which will head to Saudi Arabia, Reuters reports.
The announcement of the THAAD system was “part of a $15 billion package for defensive ballistic missile systems,” the UPI reports. Lockheed will provide interceptors and associated one-shot devices, the U.S. Missile Defense Agency announced Monday. With the new contract modification, the value of Lockheed’s contract for the systems increased from from $1.4 billion to $3.9 billion.
The Pentagon said the Saudi government would pay $1.5 billion of the $2.4 billion.
Lockheed Martin, the biggest U.S. arms maker, builds and integrates the THAAD system, which is designed to shoot down short-, medium- and intermediate-range ballistic missiles. Raytheon, another U.S. firm, builds its advanced radar, Reuters reports.
In November, Saudi Arabia signed a letter of offer and acceptance for the THAAD missile system, paving the way for the massive sale of 44 THAAD launchers, missiles and related equipment.