Raytheon Company (NYSE:RTN) has received a $349 million contract to provide the U.S. Army with new, heavy anti-tank TOW missiles. The deal is good for five years and calls for the delivery of 6,676 of the upgraded wireless missiles.
Raytheon has developed wireless technology that offers improvements to the popular anti-tank TOW missiles that have been in use for nearly 50 years. With the new advancements, gunners can give commands via a wireless guidance link, thus eliminating the need for the wire connection that was standard on past models. The new missiles will function seamlessly with existing launch platforms, meaning the Army can continue to use its primary anti-tank and precision assault weapons without having to alter tactics or institute additional training.
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Raytheon Vice President of Land Combat Michelle Lohmeier said in a statement “the upgrade to wireless gives our warfighters an improved capability,” and that, “with this contract, we are partnering with the U.S. Army to ensure our warfighters continue to have this life-saving weapon for years to come.”
Focusing on streamlining operations, Lockheed will create the Missiles and Fire Control and Missions Systems and Training business areas. The company hopes the moves will help reduce costs by around $50 million per year.
The changes will take effect December 31 and are expected to affect about 200 jobs.