Raytheon scores $250 million contract with Japan’s MELCO for ESSM Block 2 production

Raytheon, an RTX business, has been awarded a $250 million contract from Japan’s Mitsubishi Electric Corporation (MELCO) for Evolved Sea Sparrow Missiles (ESSM) Block 2 licensed production.

Under the contract, Raytheon will provide missile kits, parts, and components as well as technical support for missile production at MELCO in Japan.

This contract represents the latest chapter in the collaborative relationship between Raytheon and MELCO, and will allow Japan to enhance its domestic defense manufacturing and missile defense capabilities.

ESSM Block 2 is a short to medium-range, ship-launched, dual-mode, guided missile that has increased maneuverability and improved performance over its Block 1 predecessor.

According to Raytheon, the newest variant reduces dependence on shipboard illumination and is integrated on a wide variety of combat systems and launchers. It has significant digital processing margin to keep pace with evolving threats through software improvements.

“This innovative licensed production arrangement is the culmination of decades of partnership,” said Barbara Borgonovi, president of Naval Power at Raytheon.

“As Japan invests in this critical weapon system, it will strengthen their defense capabilities while reinforcing the vital security alliance between our nations.” 

Japan is a customer nation of ESSM, which is managed by the NATO SEASPARROW Consortium composed of 12 nations.

In May this year, Denmark decided to accelerate the procurement of additional Evolved Sea Sparrow Missiles (ESSMs) Block 2 for the Danish Navy’s frigates. Approximately DKK 880 million ($133 million) has been allocated from the Acceleration Fund to purchase the new ESSM Block 2 missiles, along with the necessary support equipment.