Raytheon to dramatically expand Tomahawk production under $22.9 billion deal

A new $22.9 billion Navy contract with Raytheon will boost production of the long-range Tomahawk cruise missile to more than 1,000 missiles per year, according to a company statement this week.

The deal will accelerate Tomahawk production at “unprecedented speed,” acting Navy Secretary Hung Cao said in a statement Monday, adding that the Pentagon is “using every available tool to meet the demand of current operations.”

The deal comes amid news reports and studies raising concerns that the Iran war has significantly reduced U.S. weapons stockpiles.

The Iran war has placed “unprecedented strain on inventories” of Tomahawks and other high-end precision munitions, according to a report this month by the Center for Strategic and International Studies.

Its analysts estimate that more than 1,000 Tomahawks have been fired during the war with Iran, roughly one-third of the estimated pre-war U.S. inventory of just over 3,000 missiles. Executive branch officials have denied that there is a shortage.

Raytheon President Phil Jasper called the Tomahawk “the Navy’s most important strike weapon.” A Tomahawk launched from ships and submarines can precisely strike targets up to 1,000 miles away, even in heavily defended airspace, the company says.

Under the seven-year contract, Raytheon is expected to produce more than 1,000 Tomahawk missiles per year, Raytheon’s statement said. The company currently makes 60 per year, according to Reuters.

It’s uncertain how quickly Raytheon will be able to ramp up Tomahawk production. The company, based in Waltham, Mass., relies on a network of subcontractors and smaller firms for the missiles’ thousands of components, The National Interest reported in March.

The process from order placement to completion can take 18 to 24 months, the publication said.

Under the new contract, the company will “collaborate closely with hundreds of small and mid-sized suppliers nationwide,” according to the statement.