Lockheed Martin Space Systems lands $2B interceptor contract

A Terminal High Altitude Area Defense (THAAD) interceptor is launched during the system’s first operational test Oct. 5, 2011, at the Pacific Missile Range Facility in Hawaii. During the test the THAAD system simultaneously intercepted two ballistic missile targets.

Lockheed Martin Space Systems Co. has won a $2 billion contract to build missile interceptors for the U.S. Missile Defense Agency.

The military piggybacked its purchase on the production of interceptors for the United Arab Emirates to save money over the life of the six-year contract.

Lockheed Martin Space Systems is a Jefferson County-based unit of defense and aerospace giant Lockheed Martin Corp. (NYSE: LM). The U.S. contract will be worked on by the LMSS campuses in Sunnyvale, Calif. and Troy, Ala.

The U.S. is buying at least 42 of the Terminal High Altitude Area Defense (THAAD) interceptor missiles. The production will coincide with filling a THAAD order by the Persian Gulf state of UAE, which is buying 96 THAAD interceptors from LMSS.

The military announced the contract Tuesday afternoon. The work is slated to be completed by mid-2018.