RTX company Raytheon has secured a $250 million direct commercial sale contract with Japan‘s Mitsubishi Electric Corp. to support the licensed production of the Evolved SeaSparrow Missile Block 2 at MELCO’s local facility. The deal covers missile kits, components and technical support, marking a new phase in the companies’ defense cooperation that stretches back over 50 years.
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RTX said the ESSM Block 2 dual-mode guided missile offers improved maneuverability and reduced reliance on ship-based radar illumination, providing stronger performance in challenging maritime environments. The sale of ESSM is managed by the NATO SEASPARROW Consortium, a multilateral program that brings together 12 nations — including Australia, Canada and the United States — to share the development, production and sustainment of the missile system.
Barbara Borgonovi, president of naval power at Raytheon, said the contract is a “culmination of decades of partnership” and strengthens Japan’s naval defense and its security alliance with the U.S.
Raytheon and MELCO’s previous collaborations include a manufacturing license agreement to produce and repair AN/APG‑63(V)1 radars for the Japan Air Self-Defense Force’s F-15 fleet. In 2024, MELCO also signed a pilot contract with Raytheon to repair transmitters that the U.S. Air Force and its allies used.
The latest DCS contract also continues the defense partnership between Raytheon and Japan. Earlier this year, Washington approved Tokyo’s $3.6 billion request to acquire 1,200 AIM‑120D‑3 and C‑8 Advanced Medium-Range Air-to-Air Missiles. Additionally, the company recently received a $141 million contract modification from the U.S. Navy to provide Standard Missile‑2 spare parts for Japan and other foreign partners.