Karman Space & Defense will make protective covers for Terminal High Altitude Area Defense (THAAD) interceptors under a seven-year, $218 million deal tied to a planned U.S. production expansion.
The Missile Defense Agency awarded Lockheed Martin, THAAD’s prime contractor, a seven-year interceptor production contract valued at $35.3 billion in June. Lockheed Martin said the award would quadruple production.
Karman disclosed the shroud agreement Oct. 20, after signing it with Lockheed Martin on Sept. 29. The covers protect key interceptor components at launch and in flight before separating later. As a mobile defense system, THAAD targets ballistic missiles near the end of their flight.
Karman had identified the shroud agreement as one of three long-term deals under negotiation during its Aug. 6 earnings call. Its results pointed to growing missile defense demand, citing recent THAAD and PAC-3 interceptor awards to prime contractors exceeding $90 billion.
Karman Space & Defense CEO Jon Rambeau said rising missile defense demand would require more manufacturing capacity. Karman plans to invest in staff, equipment and manufacturing capacity for the shroud work.
