Karman Signs $218 Million, Seven-Year THAAD Deal With Lockheed Martin

Karman Space & Defense signed a seven-year, $218 million agreement with Lockheed Martin to build shrouds for Terminal High Altitude Area Defense (THAAD) interceptors, expanding its role in a ballistic missile defense program.

The companies signed the agreement Sept. 29, and Karman announced it Oct. 20. It was one of three long-term agreements Karman had identified as under negotiation during its Aug. 6 second-quarter earnings call.

The shrouds protect interceptor components during launch and flight, then separate later in the mission. Lockheed Martin is the prime contractor for THAAD, a transportable system designed to intercept ballistic missiles in their final phase of flight.

“This long-term agreement deepens our partnership with Lockheed Martin and enables us to support increased THAAD production for years to come,” said Karman CEO Jon Rambeau.

Karman plans to invest in staffing, equipment and manufacturing capacity to support the work.