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BAE SYSTEMS receives $43.8 million contract to manufacture explosives for U.S. navy

15 May 2002

BAE Systems has received a $43.8 million contract from the U.S. Army Industrial Command to produce explosives in support of various U.S. Navy programs. With options, the total value of the contract could grow to $54.4 million.

Under the contract, BAE Systems Ordnance Systems will manufacture nearly eight million pounds of CXM-7 explosives for the U.S. Navy at the Holston Army Ammunition Plant in Kingsport, Tennessee. Deliveries will begin in June 2002 and will be completed by August 2003.

This award demonstrates the rapid response capability that was a cornerstone of our successful bid for the 25-year Facility Use contract at Holston,8 said Bruce Hamilton, president, BAE Systems Technologies Services Sector. Holston has a strategic role to play in the U.S. ammunition industrial base. No other facility in the western world could produce these quantities in this timeframe, other than Holston, and we're proud to be making our contribution to the war on terrorism.