Lockheed Martin Gets $1.3Bln to Manufacture More THAAD Interceptors

WASHINGTON (Sputnik) - Lockheed Martin has been awarded nearly half a billion dollars to manufacture Terminal High Altitude Area Defense interceptors, increasing the initial contract value from $827 million to $1.3 billion, the US Department of Defense said in a press release.

"Lockheed Martin Corp. Missiles and Fire Control, Dallas, Texas, is being awarded a $459,230,468 modification to exercise an option for the production of additional Lot 10 Terminal High Altitude Area Defense (THAAD) interceptors (one-shot devices); and to provide associated production support," the release said on Friday. "The value of this contract is increased from $826,614,843 to $1,285,845,311."

THAAD intercepts ballistic missiles during their late mid-course or final stage flight in and outside the Earth's atmosphere.

Work under the contract will be performed in the US states of Texas, California, Alabama and Arkansas and is expected to be completed by June 25, 2021.

The US has been deploying such systems in South Korea since 2016 in response to the continuing missile and nuclear tests performed by DPRK. The deployment has caused tension between South Korea and China, with Beijing believing the US-owned and operated missile shield could be used against China.