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| Published October 1, 2009 |
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Lake City ammunition plant gets $105.8M order from Afghanistan
Alliant Tech Systems Inc. received a $105.8 million contract to provide ammunition to the government of Afghanistan.
The contract includes several options that could increase its value to $200 million and will be fulfilled at the Lake City Army Ammunition Plant in Independence by ATK Small Caliber Systems, a division of Alliant Tech Systems (NYSE: ATK), based in Edina, Minn. [Eden Prairie]. The estimated completion date is Sept. 30, 2012.
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A 7.62 mm bullet for the AK-47 rifle. |
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Alliant Tech Systems spokeswoman Amanda Covington said Thursday that production won't occur in Independence but that the local operation will procure ammunition from other suppliers, mainly in Eastern European countries.
The ammunition is "nonstandard," meaning it is used in guns such as the AK-47, which is not used by the United States.
"This is the second of two contracts we’ve received for this," Covington said. "The first, in December 2008, was for $87 million."
Jack Figg, a spokesman for ATK Small Caliber Systems, said this is a big deal for the Independence operation because it’s a new market segment.
"This is part of a plan to go after international business to offset any slump in our business with the U.S. Army," Figg said. "By establishing ourselves with the ability to be able to fill a contract like this, if there is a downward slump, we can sell to this type of client and avoid violent swings in employment."
http://kansascity.bizjournals.com/kansascity/stories/2009/09/28/daily34.html
© Copyright 2009 Business Journals. All rights reserved. Reposted for educational purposes.
Link active when posted, but will not be updated. |
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