Raytheon [RTN] has begun full-rate production of the TALON Laser Guided Rocket co-developed with the United Arab Emirates under a $117 million contract, a company official said.

The TALON LGR will be used for the UAE’s AH-64 Apache helicopters. Raytheon will maintain full integration of the TALON system into the UAE armed forces to include logistics, training and warranty support, Darryl Kreitman, TALON program director, said.

The TALON LGR is a low-cost, digital semi-active laser guidance and control kit. The TALON guidance section fits directly to the front of the legacy 2.75-inch Hydra-70 unguided rocket.

Raytheon and the UAE started work on the contract five to six years ago, Kreitman said. The program is governed by the International Traffic in Arms Regulations (ITAR) and Foreign Corrupt Practices Act, a familiar process for Raytheon and fellow defense industry companies. ITAR has “an easy roadmap to follow” he said, and Raytheon has trained experts in both fields to liaison with company programs and government entities to keep the firm in compliance.

The rules and regulations are well understood, as “the ramifications are serious” if there are violations. Potential consequences include financial damages and penalties in the marketplace and to the company’s reputation, Kreitman said.

Thus, the TALON co-development went through the complex licensing, qualification and requirements work leading to the product program.

International programs also need to build in lead time for a program’s budget, which in the United States at least means a year or two to be approved through the Pentagon and Congress.

Raytheon believes TALON’s architecture and ease of employment make it a low-cost, highly-precise weapon for a wide market for countries that want to add a precision capability, Kreitman said. There are multiple manufacturers of the 2.75 Hydra-70, such as General Dynamics [GD] and

Thales, and many countries already have the rocket in their inventory that might be interested.

Raytheon could market TALON, and it has approval in more than 30 countries to do so, as a direct commercial sale. Customers could buy a new Hydra rocket with the TALON kit, or just by the kit.

TALON, as a low-cost guidance kit, is easily integrated on existing rockets, he said.

The U.S. Army is “very interested” in TALON, Kreitman said. After nearly 40 shots, in April, Raytheon received an airworthiness certificate for TALON on Apache.

“We’re now working with the Army, if it should decide to start a program in the next year or two and working on how it would fit Apache” missions, he said. Over the next few months, the company and the Army will work to develop the tactics, techniques and procedures a combat aviator would use.

Discussions with Army program and requirements offices take place monthly and as an acquisition strategy could be put in place, discussing how TALON could fit, what the pricing would look like based on quantities, and the technical performance parameters. The company keeps them informed as they move ahead.

For the past several years, Raytheon has been talking with customers throughout the world about TALON’s potential. There has been a lot of interest in the Middle East and Asia, and some interest in Europe, though Kreitman says more interest may surface over time.

Now that TALON is in full-rate production, other orders are expected.

“We anticipate that within the next nine months to one year, there will be some additional orders, and some may surprise some people,” Kreitman said.