Raytheon Secures $250M Contract from MELCO for ESSM Block 2 Missile Production in Japan

Raytheon, an RTX business, has been awarded a $250 million Direct Commercial Sale contract by Mitsubishi Electric Corporation (MELCO) to support licensed production of the ESSM Block 2 missile system in Japan.

Under the agreement, Raytheon will deliver missile kits, parts, components, and technical support for local manufacturing at MELCO facilities. This strategic partnership aims to bolster Japan’s domestic defense production capacity and reinforce its maritime defense posture amid rising regional threats.

“This innovative licensed production arrangement is the culmination of decades of partnership,” said Barbara Borgonovi, President of Naval Power at Raytheon. “As Japan invests in this critical weapon system, it will strengthen their defense capabilities while reinforcing the vital security alliance between our nations.”

A Longstanding U.S.-Japan Defense Collaboration

Raytheon and MELCO share a history of over 50 years of cooperation on critical defense technologies. This latest contract not only enhances Japan’s missile defense capabilities, but also deepens the strategic alignment between the U.S. and Japan in the Indo-Pacific region.

About ESSM Block 2

The Evolved SeaSparrow Missile (ESSM) Block 2 is a short-to-medium range, ship-launched, dual-mode missile designed for agile maritime threat interception. It offers enhanced maneuverability, reduced reliance on shipboard illumination, and seamless integration with a wide range of combat systems and launchers.

Its advanced digital processing capabilities and software-upgradable architecture ensure the missile can adapt to evolving threats well into the future. Compared to its predecessor, Block 1, the new variant delivers superior performance in complex, high-threat environments.

Japan is among the member nations of the NATO SEASPARROW Consortium, which oversees the development and management of the ESSM program across 12 allied countries.