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BAE SYSTEMS Wins Competition For 105mm Improved Ammunition

15 Mar 2005

BAE Systems today announced that it has won a contact from the UK MOD for the manufacture and initial supply of 105mm Improved Ammunition (IA) for the L118 105mm Light Gun. The contract will, subject to successful qualification, lead to an initial buy of 50,000 shells valued at approximately 17M.

The 105mm IA contract was run under competition by the Defence Procurement Agency and the Land Systems proposal was selected for its advanced technology and better value for money.

Land Systems has invested over 15M during the last few years in developing an Insensitive Munitions (IM) technology and building a new manufacturing facility at Glascoed in South Wales. This new facility will enable Land Systems to provide a surge capacity to meet the demands of all identified UK ammunition programmes, with scope to meet export orders.

Steve Rowbotham, Managing Director of Land Systems (Munitions & Ordnance) said: This contract will support and sustain skilled jobs across the United Kingdom and is fundamental to the continued success of the Land Systems business. This contract award is very good news for us. This will be the first opportunity for Land Systems to deploy the considerable technology investment and innovation that has been committed to the provision of Insensitive Munitions, which will offer the improved safety demanded by our armed forces and will also significantly enhance lethality over conventional ammunition.

Defence Procurement Minister, Lord Bach said: As we have seen recently in Iraq and Afghanistan, artillery is a potent weapon on the modern battlefield and this advanced new munition will ensure that our front line troops get the world class equipment they need to get the job done. More effective against a range of targets and even safer to store, handle and transport it is also going to be produced across the UK where I am delighted to say it will help support and sustain skilled jobs.

Notes to Editors:

Insensitive Munitions offer much greater safety through the life of the ammunition system, greatly reducing the risk of damage and loss of life through accidents or wartime aggressions.

There are three key benefits of having less sensitive munitions:
Operational - enhancing the battlefield winning capability through minimising the loss of key assets and personnel
Logistic - reducing the whole life costs through easing storage, handling and transportation constraints
Safety - reducing the risk of response to accidental or combat stimuli

About BAE SYSTEMS

BAE Systems is an international company engaged in the development, delivery and support of advanced defence and aerospace systems in the air, on land, at sea and in space. The company designs, manufactures and supports military aircraft, surface ships, submarines, fighting vehicles, radar, avionics, communications, electronics and guided weapon systems. It is a pioneer in technology with a heritage stretching back hundreds of years. It is at the forefront of innovation, working to develop the next generation of intelligent defence systems.

BAE Systems has major operations across five continents and customers in some 130 countries. The company has more than 90,000 people and generates annual sales of over 13 billion through its wholly-owned and joint venture operations.

About BAE SYSTEMS Land Systems

BAE Systems Land Systems is part of the CS&S and Land Systems group. It has some 5,100 employees across four business streams: Land Systems Hagglunds, Land Systems Weapons & Vehicles, Land Systems Munitions & Ordnance and Land Systems OMC.

Land Systems' product portfolio includes military vehicles, main battle tanks, munitions, artillery, armoured personnel carriers, infantry fighting vehicles, turreted weapon systems, engineering vehicles and bridging equipment that can be fully integrated and supported to meet a range of customer requirements.
Our aim is to enhance customers military capability by delivering the most efficient systems and solutions - always.

For further information, please contact:

Marilyn Swann, Communications Manager, BAE Systems Land Systems (Munitions & Ordnance)
Tel: +44 (0) 1257 242637 Mob: +44 (0) 7801 713117



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