The US Navy has awarded BAE Systems a contract with an initial value of $22m to manufacture missile canisters for the Mk 41 Vertical Launching System (VLS).
The agreement contains options that, if exercised, could bring the total value up to $317m.
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Mk 41 VLS missile canisters function as sealed units for storing, transporting, and launching various weapons compatible with the system.
As per the contract, BAE Systems will also continue the production of Mk 29 missile canisters, which are used for storing, transporting, and launching missiles on US Navy and allied vessels.
Production work under the latest contract will take place at BAE Systems’ main missile canister facility located in Aberdeen, South Dakota, US.
Engineering and programme support will be provided from Minneapolis.
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By GlobalDataBAE Systems weapon systems vice president Brent Butcher said: “Missile canisters are the connective tissue between the Mk 41 Vertical Launching System and the various missiles that provide Sailors the capability needed to deter threats around the world.
“These continued contract awards are a testament to the expertise of our workforce in Aberdeen. Their dedication to delivering high-quality missile canisters to the US Navy and allied nations supports our customers in fulfilling their missions of keeping sea lanes open and free.”
This contract follows another order placed in July 2024, which had a combined value of $738m for Mk 41 VLS missile launching canisters.
BAE Systems has produced all canisters used in both Mk 41 and Mk 57 launching systems for more than three decades.
These canisters are designed to support multiple missile types including Tomahawk, Standard Missile variants, Evolved SeaSparrow, and Vertical Launched Anti-Submarine Rockets.
The company supplies these products to the US and ten allied countries.
In June 2025, BAE Systems received a $30m contract from the US Navy to upgrade the Identification Friend or Foe (IFF) AN/APX-123A(V) Common Transponder (CXP) for preventing friendly fire incidents.
