MBDA UK has been picked by Britain's Ministry of Defense Ministry to develop a new naval missile defense system.

Called the Sea Ceptor, the system would intercept and destroy incoming missiles honing in on ships at supersonic speeds.

"The development of this missile system is a huge boost to the U.K.'s world-leading missile industry and once again proves our commitment to providing battle-winning technology for our Armed Forces," Minister for Defense Equipment, Support and Technology Peter Luff said.

"The introduction of this cutting-edge missile system will not only ensure that the (British navy) will be able to continue protecting our interests wherever they may be, but is also highly significant in sustaining and developing the U.K.'s skill in building complex weapons."

MBDA, the parent organization, is owned by BAE Systems, Netherland's EADS and Finmeccanica of Italy.

The company said the contract to develop Sea Ceptor is worth more than $760 million.

As envisaged the anti-missile missile would fly at Mach 3 -- about 2,300 mph. The system itself would provide coverage for a 500-square-mile area and be able to simultaneously engage multiple targets.

Sea Ceptor has been designed for initial use on the Type 23 frigate and would replace the Sea Wolf air defense system starting in 2016.

Sea Ceptor will protect both the host ship and high-value assets within the coverage area from incoming missiles -- including saturation attacks.

"This new weapon system will equip our frigates to deal with the type of sophisticated missile threat expected in the coming decades," said First Sea Lord Adm. Mark Stanhope. "Investment in advanced defense technology, such as Sea Ceptor, is vital to ensure the Royal Navy's continued ability to defend the U.K.'s interests wherever necessary."

MBDA said the system would also be used on Britain's Type 26 Global Combat Ship and could be adapted for the army and air force.

Sea Ceptor is the second major package of work launched under a 2010 between MBDA and the Defense Ministry, through which MBDA will enhance the country's complex weapons capability projects.

That overall Portfolio Management Agreement carries a 10-year value of more than $6.2 billion

MBDA said the Sea Ceptor project will sustain around 500 jobs in MBDA and its supply chain in key locations across Britain.