Senate Approves $95B Aid Package; Lockheed Expands Weapon Product
Recent approval from the U.S. Senate has authorized a $95 billion wartime aid package destined for Ukraine, Israel, and other American allies, though the bill's journey now rests in the hands of the Republican-controlled House.
In an update, Lockheed Martin (LMT:US), a prominent defense company has announced plans to boost production of its weapons systems in response to heightened demand amid escalating security concerns globally.
Various geopolitical factors such as the Russia-Ukraine conflict, the crisis in the Middle East, and concerns over Chinese aggression have contributed to the increased demand for weapons systems manufactured by U.S. defense companies.
Lockheed Martin has outlined its intentions to double the production of its High Mobility Artillery Rocket Systems (HIMARS). Already, the production capacity for HIMARS has risen from 48 per year to 60 per year, with projections to meet a capacity of 96 per year by the end of 2024.
Similarly, production of the Javelin, an antitank missile system has increased to 2,400 per year with plans to further raise production capacity to 3,960 Javelins per year by late 2026.
Lockheed Martin aims to deliver over 10,000 Guided Multiple Launch Rocket Systems (GMLRS) this year and aims to scale up production capacity to 14,000 per year by 2025.
Furthermore, the company has allocated advanced funds to increase the annual production rates of the PAC-3 MSE air defense missile system to 650 by 2027.
On the congressional trading front, Democratic Congresswoman Kathy Manning and Republican Representative Kevin Hern were stocking up the defense stock in January.
