Raytheon, a business of RTX, has signed a $250 million direct commercial sale contract with Mitsubishi Electric Corporation (MELCO) of Japan for the licensed production of the Evolved SeaSparrow Missile (ESSM) Block 2.
As part of the agreement, Raytheon will deliver missile kits, components, and technical support to enable local assembly and production by MELCO in Japan. The arrangement builds on a defense partnership between the two companies that spans more than five decades.
The ESSM Block 2 is a ship-launched surface-to-air missile designed for short to medium-range threats. It features enhanced maneuverability and reduced reliance on ship-based guidance systems compared to the earlier Block 1 version. The missile is compatible with multiple launch platforms and combat systems, and includes advanced digital processing to support future software upgrades.
The contract is expected to support Japan’s broader efforts to expand its domestic defense manufacturing capacity and deepen its role in international defense programs. Japan participates in the NATO SEASPARROW Consortium, which manages the ESSM program and includes 12 member nations.
The agreement also reflects ongoing defense industrial collaboration between Japan and the United States.