Japan and the United States agreed earlier this year that ground-based Patriot Advanced Capability 3 interceptor missiles will be produced under license in Japan as part of the missile defense system, Defense Agency chief Yoshinori Ono said Tuesday.
Mitsubishi Heavy Industries Ltd. is expected to conclude a contract with U.S. manufacturer Lockheed Martin Corp. by March and produce the PAC-3 surface-to-air missiles beginning in fiscal 2008, agency sources said.
As the Defense Agency plans to start deploying the PAC-3 at around the end of fiscal 2006, Japan will purchase the interceptor missiles in fiscal 2006 and 2007 from the U.S. based on the foreign military sales arrangement under the bilateral security treaty's Mutual Defense Assistance Agreement.
The two governments concluded a memorandum of understanding in March for the licensed production arrangement, Ono told a news conference after the day's Cabinet meeting.
While the cost of producing the missiles domestically is much higher than purchasing them from the U.S., the long-term costs, including maintenance, will be less, the defense chief said, adding Japan would also benefit by building on its missile production technologies.
"Licensed production will secure Japan's technological and production bases," Ono said. "The cost will be higher in the short term, but when we think about the costs of inviting technicians from the United States for maintenance and repair, it would balance out in the long run."