ATK and General Dynamics Form American Powder Company, Munitions Propellant Joint Venture
Jun 12, 2001
ATK (Alliant Techsystems)(NYSE: ATK) and General Dynamics (NYSE: GD) have entered into an agreement under which the two companies will jointly develop and produce munitions propellant for the U.S. Department of Defense and operate the Radford Army Ammunition Plant in Radford, Va. -- the U.S. Army's only munitions propellant manufacturing facility.
The agreement calls for the formation of a joint venture company called American Powder Company, which will be co-managed by ATK Ammunition and Powder Company, Radford, Va., and General Dynamics Ordnance and Tactical Systems, St. Petersburg, Fla. Patrick S. Nolan, president, ATK Ammunition and Powder Company, will serve as president of the newly formed American Powder Company.
Nick Vlahakis, ATK group vice president, Defense, said the joint venture represents an innovative approach to Army facilities utilization benefiting the U.S. government as well as ATK and General Dynamics shareholders.
"This is a win-win across the board," said Vlahakis. "For our customer, it will provide for the most effective utilization of the U.S. Army's only remaining propellant plant -- a critical national security asset. American Powder Company will ensure a reliable source of high-quality propellant, which is a key component of the ammunition produced by ATK and General Dynamics."
Mike Wilson, president of General Dynamics Ordnance and Tactical Systems, said, "The formation of American Powder is a positive step for both companies. Blending the capabilities and expertise of the companies to manage the Radford Army Ammunition Plant will maximize workload, better ensure continuing facility viability, and deliver customer satisfaction."
The companies believe the joint venture will enable them to compete more effectively in the global munitions marketplace. The combination of each company's technologies also will speed the development and production of next-generation propellant that will increase the effectiveness of tactical munitions -- a key objective in the U.S. Army's transformation to a more lethal and mobile fighting force.
ATK Ammunition and Powder Company, one of five operating companies in ATK's Defense Group, is the largest supplier of ammunition propellant to the U.S. Department of Defense and a major producer of commercial and military smokeless powder. The company's propellants are used in tank ammunition, medium-caliber ammunition, artillery propelling charges, and tactical rocket motors.
ATK is a $1.6 billion aerospace and defense company with leading positions in munitions, precision capabilities, propulsion, and composite structures. The company, which is headquartered in Hopkins, Minn., employs approximately 10,000 people and has two business segments: Aerospace and Defense. ATK news and information can be found on the Internet at http://www.atk.com/ .
General Dynamics Ordnance and Tactical Systems, a business unit within the General Dynamic's Combat Systems Group, produces over 120 types of Ball Powder® Propellant for all segments of law enforcement, industrial and sporting ammunition industries and various military applications. In addition to propellants, General Dynamics Ordnance and Tactical Systems manufactures large and medium caliber ammunition and precision metal components, provides explosive load, assemble and pack services for a variety of tactical missile and rocket programs and designs and produces shaped charge warheads and control actuator systems.
General Dynamics, headquartered in Falls Church, Va., employs approximately 47,000 people and anticipates 2001 sales of approximately $11.5 billion. The company has leading market positions in business aviation, information systems, shipbuilding and marine systems, and land and amphibious combat systems.
SOURCE: Alliant Techsystems
Contact: Media, Rod Bitz, 952-931-5413, rod_bitz@atk.com, or Investors,
Steve Wold, 952-931-6747, steve_wold@atk.com, both of ATK, or Media, Gail
Wilson of General Dynamics, 727-578-8144, gswilson@stp.gd-ots.com
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