Defense Business Remains Interanational As Boeing Subs To MB Aerospace

The British company MB Aerospace announced that it had secured a further contract from Boeing to build launch systems for the Harpoon Surface-to-Surface anti-ship missile. This award is a four year extension of an original one year contract. This original contract was for about $10 million in work and the four year extension will add another $30 million.

This contract continues to illustrate the global integration of the defense business. This is especially true for the Western NATO allied countries. Because Harpoon is a system used not just by the U.S. but a variety of their allies and foriegn customers it makes sense to build parts for it in other nations. It may be a way to secure a better price or faster production or it may help sales to a foriegn customer. The overseas customers also provide necessary competition to U.S. sub-contractors.

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