U.S. ammunition contract not renewed: MND
ROC Central News Agency
By Emmanuelle Tzeng and Kendra Lin
Taipei, Feb. 28 (CNA) The Ministry of National Defense said Monday that a contract to supply ammunition to the U.S. had not been extended, but dismissed a media report that an arsenal will have to be closed as a result.
The U.S. armed forces signed the contract five years ago with the ministry to buy 500 million 5.56mm M-16 rifle rounds made by the 205th Arsenal under the Combined Logistics Command, the China Times reported that same day.
The report continued that the renewal of the contract, which expired this year, was won by a U.S. company.
The ministry said the export deal was terminated because it came to an end and the buyer did not express further demand for a continuation of the contract.
The order helped the factory, which was on the verge of closing down at that time, to earn profits of at least NT$2 billion (US$6.73 million), the ministry said.
A defense official dismissed the report that the bullet production line at the arsenal will be forced to close soon.
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