RTX subsidiary Raytheon has secured a $250m contract from Japan’s Mitsubishi Electric Corporation (MELCO) for the licenced production of the ESSM Block 2 missile.
This agreement, part of a direct commercial sale, involves Raytheon supplying missile kits, components, and technical assistance for production at MELCO’s facilities in Japan.
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The ESSM Block 2 missile, designed for short to medium-range engagements and launched from ships, offers enhanced manoeuvrability and performance compared to its predecessor, Block 1.
It operates with reduced reliance on shipboard illumination and is compatible with various combat systems and launch platforms.
Engineered for effectiveness in challenging maritime conditions, the missile features advanced digital processing capabilities that allow it to adapt to emerging threats through software updates.
Raytheon Naval Power president Barbara Borgonovi said: “This innovative licenced production arrangement is the culmination of decades of partnership.
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By GlobalData“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 an active participant in the ESSM programme, overseen by the NATO SEASPARROW Consortium, which includes 12 member nations.
This contract not only boosts Japan’s domestic missile production capabilities but also strengthens the security partnership between the US and Japan, according to the company.
Recently, Raytheon obtained a $646m contract to continue producing AN/SPY-6(V) radars for the US Navy.
This contract is the fourth option exercised from a March 2022 award, which encompasses hardware, production, and sustainment, with a total potential value of up to $3bn over five years.
The company also won a $1.1bn contract from the US Navy earlier in June 2025 to boost production of AIM-9X Block II Sidewinder short-range air-to-air missiles.
This contract represents the largest award for the AIM-9X programme to date, increasing annual production to 2,500 missiles.
