Lockheed Martin received a $273 million contract to produce Terminal High Altitude Area Defense Lot 9 Interceptors for the U.S. Missile Defense Agency.

Terminal High Altitude Area Defense systems, or THAAD, are defensive platforms used to engage incoming ballistic missile attacks and other airborne threats. The system is capable of intercepting missiles from inside and outside of the Earth's atmosphere.

Lockheed Martin says the product is ideal for defending highly concentrated population centers and high-value infrastructures. It is also designed to be interoperable with other ballistic missile defense systems.

In addition to Lot 9 Interceptors, the fixed-price agreement also includes one-shot devices and associated production support efforts.

According to the U.S. Department of Defense, work on the contract will be performed at various locations in Texas, Alabama and Arkansas. The Interceptors are expected to be delivered by the end of March 2020.

The Missile Defense Agency is managing the project.

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