Associated Press April 2, 2003
Raytheon, Navy in talks to accelerate Tomahawk production
By JUSTIN POPE
Defense contractor Raytheon Corp. said it is in talks with the Navy to accelerate production of the next generation of Tomahawk cruise missiles after two weeks of war in Iraq have depleted stocks of the existing model.
In response to queries from the Navy, Lexington-based Raytheon has said it could accelerate production of the new Tactical Tomahawks, to be manufactured in Tucson, Ariz., from 38 to 50 per month if funding becomes available, Raytheon spokeswoman Jennifer Allen said Wednesday.
The Navy has said it plans to spend as much as $2 billion for 1,353 of the next-generation weapons, which are scheduled to become operational in the summer of 2004. That date could be brought forward.
Raytheon is under two contracts totaling $260.5 million to build 192 of the new missiles.
Allen said it is unknown whether the Navy would order further missiles or just ask for accelerated delivery of those currently under contract.
"We're standing by," she said.
Navy Cmdr. William Fenick confirmed the discussions.
"Obviously there will be a need to replenish our stockpiles of these and other precision guided munitions," Fenick said. "Each of the services are working to plan for the reconstitution of these and other military capabilities when we have achieved our objective to liberate Iraq."
The Army said earlier this week that 700 Tomahawks have already been fired by the U.S. Military in the Iraqi war. Analysts had estimated the Pentagon's pre-war stockpile at only about 2,000.
The satellite-guided missiles are fired from ships and submarines.
John Pike, president of defense consultancy GlobalSecurity.org., said the Pentagon is more likely to use cruise missiles early in a war when targets are better defended. He said the Pentagon planning called for a large enough stockpile to handle conflicts in Iraq and, if needed, North Korea, with some extras in reserve.
"I'm not going to try to second-guess their estimates over time as to how many they would want to have, but I am assuming they are rapidly running out of the number that would be allocated to targets other than North Korea," Pike said. "They basically don't intend to find themselves with a one-war inventory when they're done with Iraq."
In a separate announcement, Raytheon said recent contracts and another anticipated deal involving Patriot missiles will mitigate previously announced layoffs.
In February, Raytheon said it would lay off 300 workers at its Andover plant, about 3 percent of the employees of Raytheon's Integrated Defense Systems division. Raytheon said Wednesday it would instead trim 200 positions.
About 3,300 people work at the Andover plant.
The company said the layoffs were necessary because of the winding up of a contract to build Patriot missiles for Greece and duplication in operations, but said it had since won a number of smaller component manufacturing contracts and that it anticipated an additional contract. The company did not provide any more specifics.
Raytheon produces older versions of the Patriot, known as the GEM and GEM+ models, which have been deployed in the Middle East. It also makes radars for the newest version, the Pac-3, though the missile itself is manufactured by Lockheed Martin Corp.
Raytheon shares were up 7 cents at $28.95 in afternoon trading on the New York Stock Exchange.
© Copyright 2003 Associated Press State & Local Wire
