US-Japan plan to increase Patriot missile production for Ukraine defence delayed

Component shortage from Boeing impedes efforts to meet rising demand


REUTERS July 20, 2024

TOKYO:

A US initiative to increase the production of Patriot air defence missiles in Japanese factories, aimed at bolstering Ukraine's defences against Russian attacks, is being delayed due to a shortage of a crucial component manufactured by Boeing, according to four sources.

Japan's Mitsubishi Heavy Industries (MHI) currently produces about 30 PAC-3 missiles annually under a license from defense contractor Lockheed Martin. This production could be ramped up to around 60 missiles per year, according to two Japanese government officials and two industry sources who spoke to Reuters.

The US aims to increase global production from approximately 500 to over 750 missiles per year as soon as possible, according to a person familiar with the program. However, any expansion in Japan hinges on the availability of additional missile seekers, which are essential for guiding the missiles in the final stages of flight, the officials and industry sources noted.

"It could take several years before MHI is able to raise output" due to the shortage, said one industry source, who, like the others, wished to remain anonymous because they were not authorised to speak to the media.

The production delay in Japan underscores the difficulties Washington faces in integrating industrial support from global allies into its complex supply chains. Boeing began expanding its seeker manufacturing facility in the United States last year to increase production by 30%. However, the new production lines won't be operational until 2027. While Boeing did not disclose last year's production figures, it noted the delivery of its 5,000th seeker.

A Boeing representative directed inquiries to Lockheed Martin, the prime contractor for the interceptor. Lockheed Martin has stated it plans to increase its US output of Patriot interceptors from 500 to 650 by 2027, with each interceptor costing about $4 million.

Even if sufficient seekers become available, further expanding Japan's annual PAC-3 production beyond 60 missiles would require MHI to enhance its production capacity. In its 2022 plan to double military spending, Japan's government pledged financial support to defense companies seeking to expand production. However, these subsidies are only available for equipment destined for Japan's Self-Defense Forces and not for export.

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