Australia Prepares to Pick New Munitions Supplier

Major American ordnance manufacturers Alliant Techsystems (NYSE: ATK  ) , General Dynamics (NYSE: GD  ) , and Olin Corp (NYSE: OLN  ) are all in the running to win a contract to produce "munitions, propellant and high explosives" for the Australian military, according to an announcement from that nation's Defence Materiel Organization this week.

On Monday, Minister for Defence Materiel Dr Mike Kelly  announced that three consortia of companies have progressed to the second stage of a tender Australia is holding to choose its munitions manufacturers after June 2015, when its current Strategic Agreement for Munitions Supply expires. Comprising these consortia are:

  • Alliant, in combination with NOIA Nominees Pty Limited, American Ordnance LLC, and Day & Zimmerman Inc
  • General Dynamics, teamed with Thales Australia Limited, NAMMO, and Winchester Australia (owned by Olin)
  • British arms merchant BAE Systems' (NASDAQOTH: BAESY  ) Australian division in combination with Expal Systems SA, BAE UK, and BAE USA.

Kelly did not say how much the supply agreement might be worth to the winners, but further details may be released when Australia announces its winner -- sometime in Q3 2014.

link


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2570103, ~/Articles/ArticleHandler.aspx, 11/27/2014 2:42:53 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement