Modernization Boost for Rocket Propulsion: L3Harris' Success Story

L3Harris Technologies has laid the foundation for a fresh start with significant investments in its Aerojet Rocketdyne division. The acquisition 15 months ago was a response to years of underfunding and delivery delays. As one of only two major manufacturers of solid rocket motors for the Pentagon, Aerojet plays a critical role in the modernization of aging intercontinental missiles and the storage of tactical missiles to deter China. This responsibility was burdened by a long period of uncertainty, exacerbated by a failed takeover attempt by Lockheed Martin and regulatory objections in 2019. It was only with L3Harris's offer in December 2022 that a concrete perspective emerged. At that time, the company was lagging behind in thousands of deliveries. However, it was not just a financial risk but also a leap into the unknown, given the ongoing conflict in Ukraine. A notable example is the Javelin missile, for which production deficits have since been made up. Through an 84 percent increase in investments in the unit, processes have been optimized, factories digitized, and supply chains strengthened. A 600 percent increase in the production capacity of a rocket motor casing illustrates the success of these efforts. Revenue serves as an indicator of success, with an increase of 23.6% compared to five years ago, thanks to innovative approaches in supply chain management by L3Harris.