Raytheon awarded $2.35 billion contract for SM-3 missiles

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[December 19, 2015]  WASHINGTON (Reuters) - Raytheon Co <RTN.N> has won a contract worth up to $2.35 billion to build 52 SM-3 Block IB missiles for the U.S. Missile Defense Agency using fiscal 2015 funding, plus three one-year options, the Pentagon said on Friday.

The contract finalizes a preliminary contract for 44 SM-3 Block IB missiles awarded to Raytheon in April with a value of $541 million and adds eight missiles for a total of 52, the Defense Department said in its daily digest of arms contracts.

It also includes three one-year options for fiscal 2016 through fiscal 2018 that would buy up to 52 additional missiles each year.

The U.S. military has increased its orders of SM-3 missiles to keep up with growing missile threats around the world.

The U.S. and Romanian governments on Friday said work had been completed on a new U.S. missile defense site south of Bucharest that will defend against potential attacks from Iran, and the site would be declared for combat use in early 2016.

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The Aegis Ashore site includes a powerful radar, missile interceptors and communications equipment built by Lockheed Martin Corp <LMT.N> and Raytheon. The site will use the new SM-3 Block IB missiles built by Raytheon.

(Reporting by Andrea Shalal; Editing by Dan Grebler and Chris Reese)

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