The Hudson campus of BAE Systems was the setting for the signing of a multiyear agreement with the U.S. Department of War to increase production capacity of the company’s APKWS laser-guidance kits up to 35,000 units per year.
The kits, which transform unguided 2.75-inch rockets into precision-guided munitions, are used by the Air Force, Army, Marine Corps and Navy, and are available to U.S. allies. They are designed to hit targets with pinpoint accuracy and minimal collateral damage, the company says.
“APKWS is a premier interceptor of choice for countering widespread aerial threats for us,” said Tom Arseneault, president and CEO of BAE Systems Inc., during an Oct. 19 presentation attended by Under Secretary of War Michael Duffy. “As an integral part of the U.S. defense industrial state, our job is to make sure our war fighters have what they need to fight and win in any conflict today and well into the future.”
The kits are produced at BAE Systems’ manufacturing plants in Hudson and Austin, Texas. BAE has produced more than 100,000 APKWS kits over the past 12 years and has 50,000 more on contract through foreign military sales, Arseneault said.
Michael Duffy, under secretary of war for acquisition and sustainment, and Tom Arseneault, BAE Systems Inc. CEO, shake hands after signing a framework agreement to accelerate delivery of proven, cost‑effective precision munitions Oct. 19. (Courtesy of BAE Systems)
“These kits leverage a robust supply chain here in the United States, and with this agreement, BAE Systems will issue subcontracts for machining services, batteries, fuses, coatings, fiber optics and more,” he said. “These contracts will support jobs at more than 25 companies across the United States.”
BAE works with more than 15 APKWS suppliers in New Hampshire. Overall, BAE works with more than 250 suppliers across the state, the company said.
“This agreement also shows why sustained investment in critical munitions matters. It reflects the confidence and trust that the Department of War places in the defense industrial base to deliver critical munitions like APKWS at speed and at scale,” Arsenault said.
Under the agreement, BAE Systems will increase production while negotiating a multi‑year contract within the framework. APKWS kits have been used for precision strikes against a range of threats, including unmanned aircraft systems, which Duffy noted during an interview with NH Business Review.
“This was an honor to come here personally to address the workforce and the leadership team that had the ingenuity to build this weapon and really give us value that that delivers capability at a lower cost to defeat the unmanned vehicle threat,” Duffy said after a signing ceremony.
The Department of War has been working with defense contractors to “flip the script” and enable a faster response to world conflicts, he said.
“One of those really powerful ways to flip the script is repositioning the relationship between industry and government in the sense that industry is really delivering value in terms of innovation and production and skilled labor that government cannot bring to the equation,” he said.
“I think we’re recognizing that rather than having a relationship where government directs industry what to do, we now have industry bringing tremendous capability to government and saying, ‘We can help deliver value for the war fighter,’” Duffy said. “I think APKWS is a great example of that.”
APKWS guidance kits transform unguided 2.75-inch rockets into precision-guided munitions. (Courtesy of BAE Systems)
BAE Systems employs about 1,000 people in Hudson and 6,500 in New Hampshire spread across campuses that also include Nashua, Merrimack and Manchester. The company has been working with the state’s higher education system to cultivate the talent it needs, Arsenault told NHBR.
Duffy was scheduled that day to visit NHTI to hear about a program BAE developed to train microwave assembly technicians.
“We donated equipment and helped with the training programs in order to build a pipeline of talent for the businesses here,” Arsenault said.
Mike Cote is editor of NH Business Review. Contact him at mikecote@yankeepub.com
The Hudson campus of BAE Systems was the setting for the signing of a multiyear agreement with the U.S. Department of War to increase production capacity of the company’s APKWS laser-guidance kits up to 35,000 units per year. The kits, which transform unguided 2.75-inch rockets into precision-guided munitions, are used by the Air Force, Army, Marine Corps and Navy, and are available to U.S. allies.
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