U.S To Increase Missile Protection, Defense Contractors Look At Long-Term Investments

  • Bindiya Thomas
  • 01:08 PM, March 27, 2013
  • 2322
U.S To Increase Missile Protection, Defense Contractors Look At Long-Term Investments

The U.S has announced plans to increase its missile defense protection despite budget cuts and sequestration is full effect -- a move that defense giants are likely to welcome the open arms.

Pentagon’s plan to prepare for threats from Iran and North Korea include reinstating the Bush Administration’s missile defense plan, the U.S now hosts a growing total of 44 missile interceptors.

The additional interceptors are projected to boost the United States' missile defense capabilities by 50% and cost an estimated $1 billion, according to reports.

Defense Secretary Chuck Hagel recently announced that the U.S. is looking to add a second ballistic missile radar instillation in Japan and that the U.S. will be shifting "resources" to boost funding to Lockheed Martin's Aegis Missile defense system. 

Besides Lockheed Martin companies such as Boeing Military, Raytheon and Northrop Grumman all stand to gain billions in the event of an all-out attack.

Northrop Grumman, for instance, is the prime contractor on the Missile Defense Agency's Joint National Integration Center, a simulating and war-gaming center that provides answers for America's missile defense capabilities.

Boeing makes ground-based interceptors (America’s first line of defense against missiles) and Raytheon which builds the SM-3, a defense weapon used to destroy incoming ballistic missiles have reason to cheer after Obama’s latest announcement in terms of long-term investments. 

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