* System could be ready as soon as 2013
* Could bring more than $1 billion in sales worldwide
* Raytheon says also being looked at for Europe
By Jim Wolf
HUNTSVILLE, Alabama, Aug. 18 Raytheon Co
(RTN.N), the world's biggest missile maker, said it was
developing a new system that, if deployed, could boost Israel's
defenses against Iran as soon as 2013 and beef up anti-missile
The system could also help resolve a U.S.-Russian deadlock
over Bush-era plans to extend into Europe the U.S. shield
against ballistic missiles.
The plan is to create a land-based version of Raytheon's
existing Standard Missile-3, a mainstay of U.S. missile defense
from the sea. It also would use a long-range Raytheon radar
already deployed in Israel and Japan as part of yet another
U.S. defense system.
"Coming soon to a theater near you," the company said in a
slide presentation on its would-be new SM-3 "ashore"
Raytheon executives talked up the concept on Tuesday at an
annual U.S. Army-organized missile-defense conference in
The proposed land-based SM-3 system "could provide Israel a
near-term solution to counter ballistic missiles from Iran,"
Raytheon said in its slide presentation.
"If the program goes through to production and is deployed
globally with international allies, the potential value ...
will be more than $1 billion," Michael Booen, a Raytheon vice
president for advanced missile defense, told Reuters.
Company executives said the land-based SM-3 could be
operational as soon as 2013 if funded adequately by the
Pentagon. The Pentagon has requested $50 million for its
development in fiscal 2010, which starts Oct. 1. Raytheon has
already made a significant investment of its own, Booen said.
The SM-3 is a defense against short- to intermediate-range
missiles. It was developed for ships equipped with Lockheed
Martin Corp's (LMT.N) Aegis ballistic missile defense and has
already notched up 15 "hit-to-kill" test intercepts.
Development costs would be very low, and the system would
take advantage of billions of dollars of other U.S. investments
to beef up the emerging, layered anti-missile shield, said
Peter Franklin, a vice president of Raytheon's Integrated
Defense Systems business unit.
Raytheon executives said land-based SM-3 systems were also
being looked at by the Pentagon as an option for European
missile defense. It could play a role there with or without the
10 interceptor missiles that former president George W. Bush
proposed to put in Poland, along with tracking radar in the
Czech Republic, as a hedge against Iran, Booen said.
Moscow has strongly opposed the plans for Poland and the
Czech Republic as a threat to Russia's security.
Riki Ellison, a prominent U.S. missile-defense advocate,
said land-based SM-3 missiles may be easier for the United
States to "sell" to Russia as a European missile-defense
solution aimed at defending against Iran.
Moscow would be more receptive, he said, partly because
land-based SM-3's would be incapable of shooting down
strategic, long-range Russian missiles. Also, the availability
of such a system could lead to a face-saving deal that could
substitute for a Polish and Czech installation.
"It's one of the primary solutions" that the Obama
administration is mulling, said Ellison, who heads the Missile
Defense Advocacy Alliance, a private group close to the
Pentagon and industry.
Gen. Kevin Chilton, who oversees missile defense as
commander of the U.S. Strategic Command, told the conference
the United States was mindful of maintaining "strategic
stability" with Russia and China as it builds its shield.
The U.S. plan to put interceptors in Poland "is akin to
having missiles in Cuba to them," he said of Russia's concerns,
referring to the 1962 showdown between the Soviet Union and the
United States generally regarded as the closest the Cold War
came to nuclear war.
Chilton declined to comment on whether the land-based SM-3
was one of the alternatives under review by the Obama
administration. "I think there's all kind of potential
solutions on the table, being discussed," he said.
(Reporting by Jim Wolf; editing by Tim Dobbyn)