(Reuters) -Defense contractor RTX said on Friday its joint venture Raytheon-Rafael Protection Systems has secured a $1.25 billion contract to supply Israel with surface-to-air missiles.

The deal includes missiles, missile kits and test equipment for Israel's Iron Dome system.

Demand for the company's defense business is strong amid rising geopolitical tensions around the world.

The companies said a $33 million capital investment has been used to establish a new facility in East Camden, Arkansas, which will make missiles for the Iron Dome Weapon System and its U.S. variant, SkyHunter, a short to medium-range air defense weapon designed to counter a range of threats.

Last month, RTX raised its annual profit and revenue forecast on rising demand for its missiles and aftermarket services.