General Dynamics (GD) and Lockheed Martin (LMT) signed framework agreements with the Department of Defense, initiating seven-year multiyear procurement contracts to expand production of components supporting the THAAD and PAC-3 MSE interceptor programs, the department said Monday.

The agreements aim to triple PAC-3 MSE and quadruple THAAD interceptor production capacity while strengthening output of key interceptor components, according to the statement.

The agreements provide minimum annual procurement commitments to support capacity expansion, with funding subject to annual appropriations, the statement added.

General Dynamics and Lockheed Martin shares were down 2.2% and 0.9% respectively, in Monday trading.

Price: 370.87, Change: -8.45, Percent Change: -2.23