Alliant Techsystems Inc. (ATK) has received orders for the new medium caliber cannon to equip the U.S. allied forces worldwide, worth $33.5 million. Under the contract, Alliant will produce both 25mm M242 and the 30/40mm Mk44 automatic cannons to supply to its European and Middle East/North Africa (MENA) Region customers.
The medium caliber cannons produced by Alliant are the primary gun systems for the Bradley Fighting Vehicle, the Light Armored Vehicle, the Apache Attack Helicopter and the coastal patrol craft. The company said over 11,000 25mm M242 cannons are in service worldwide. The 30/40mm Mk44 has become the weapon of choice for the world’s medium caliber fighting platforms – including ground combat vehicles, naval and aircraft applications.
These contracts will expand the production of Alliant’s battle-proven M242 and Mk44 Bushmaster Chain Guns to support the allied forces. Alliant already sells medium caliber cannons to more than 30 countries world-wide. The company said it will carry out production of these cannons at its Mesa, Arizona facility.
Over the years, Alliant has been a leading supplier of affordable and proven medium caliber gun systems to the U.S. Army and its allies. Alliant provides affordable, precision, medium-caliber cannons, advanced fire control systems for ground, sea, and air platforms; and produces more than eight million rounds of medium caliber ammunition per year.
Earlier this week, Alliant Techsystems won a $49.9 million ammunition contract from the U.S. Army Contracting Command. Under the contract, the company will manufacture lightweight 30mm M789 high explosive dual purpose ammunition. These dual-purpose ammunitions are capable of hitting difficult targets by penetrating shields while also maintaining their capability of striking soft targets.
The latest cannons’ contract not only supports Alliant’s focus on international growth but also helps sustain its market leading position in the development and manufacturing of quality medium caliber guns systems.
Minneapolis, Minnesota-based Alliant Techsystems is a premier aerospace, defense and commercial products company operating in 24 states, Puerto Rico and internationally. The company competes mainly with peers like Northrop Grumman Corp. (NOC) and General Dynamics Corp. (GD). We retain our long-term Neutral recommendation on the stock. Also, Alliant currently has a short-term Zacks #3 Rank (Hold).
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