Raytheon (NYSE: RTN) will continue to manufacture the tube-launched, optically-tracked, wireless-guidedÂ missiles through a $129.9 million contract modification from the U.S. Army.
The company said TuesdayÂ the award modifies a previously awarded $320 million contract forÂ TOW weapons production.
Kim Ernzen, vice president of Raytheon’s land warfare systems business, said there is global demand for the system that worksÂ to help U.S. and allied ground troops maintain a battlefield advantage.
The weapon uses multimission TOW 2A, TOW 2B and TOW Bunker Buster missiles designed to hit armored and wheeled targets.
Raytheon has provided more than 690,000 TOW units to customers to dateÂ and the company noted it expects the U.S. military to use the system through 2050.