RAYTHEON LOBBIES JAPAN FOR LOCKHEED’S $300-M RADAR DEAL

US defense company Raytheon is lobbying Japanese lawmakers to replace Lockheed Martin Corp. as the supplier of powerful radars as Tokyo reconsiders plans for two Aegis Ashore missile defense sites, three sources told Tim Kelly and Yoshifumu Takemoto of Reuters on July 30, 2020.

“It’s game on,” said one of the sources, who has direct knowledge of Raytheon’s lobbying campaign. Raytheon’s pitch includes a proposal to put its SPY-6 radar on refitted destroyers, as the US Navy plans to do. The company says that would save money and time as Japan tackles new missile threats, drones and stealth aircraft.

Lockheed Martin has a contract with Japan to build its $300 million SPY-7 radars at the two cancelled Aegis Ashore sites, but says other sites or ships are possible. But critics say dedicating ships to missile defense pulls them away from other duties, and new destroyers can cost hundreds of millions of dollars. And Japan could face financial penalties if it pulled out if its contract with Lockheed Martin. “We are looking at the various options available to us,” a defense ministry spokesman said.

A key battle for the two companies will be winning the support of former defense ministers and deputy ministers who as early as next month will make recommendations to Prime Minister Shinzo Abe. That group, led by former defense minister Itsunori Onodera, formed in June after current defense chief Taro Kono suspended the Aegis Ashore plan. It will weigh in on missile defense and possibly propose that Japan acquire strike weapons for that mission, Japanese officials have said. Japan under Abe has beefed up its military with stealth fighters designed to fly off carriers, longer-range missiles, new amphibious units and stronger air defenses meant to deter threats from neighbors, including North Korea and China.