SACO (AP) – General Dynamics has won an $18 million contract to produce an updated rapid-fire gun system that’s the last line of defense for most U.S. warships.

Raytheon Missile Systems of Louisville, Ky., awarded the contract to General Dynamics Armament and Technical Products division.

The contract, announced Thursday, will be managed from Burlington, Vt., and production will be carried out in Saco, Maine.

Developed for the Navy, the Phalanx utilizes a radar-directed, 20-mm Gatling gun that can be used against anti-ship missiles, aircraft and high-speed watercraft.

A land-based version, which is mounted on wheels, can be used to protect ground forces and installations from rocket, artillery and mortar threats.

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