Raytheon, a business unit of RTX (NYSE: RTX), has been awarded a $745 million contract by the Missile Defense Agency for the production and sustainment of Standard Missile-3 Block IIA interceptors.

The SM-3 IIA is a cooperatively developed program between Raytheon and Japanese industry. The missile features a larger rocket motor and an enhanced kinetic warhead compared to its predecessors, enabling it to engage short- to intermediate-range ballistic missile threats across wider geographic areas.

Production under the contract will take place at Raytheon facilities in Tucson, Ariz., and Huntsville, Ala.

RTX recently completed a $115 million expansion of its Alabama missile integration facility, which the company says will increase integration and delivery capacity by more than 50%. The company stated it has made broader investments to expand capacity and accelerate production across its Standard Missile product line.

Barbara Borgonovi, president of Naval Power at Raytheon, said the company has "made sustained investments in our production lines and processes, which are allowing us to increase capacity and deliver these critical munitions to our customers more quickly."

The information above is based on a press release issued by RTX.