The contract will run over a three year period and will focus on factory production optimization and logisitical networks. The expansion is to meet U.S.military, commercial; and foreign demand for standatd NATO and non-standard ammuntion
"Supplementing military production, commercial supply agreements like these are beneficial to both Orbital ATK and our Army customer as they provide an expanded business base for our Lake City operations, workforce, and key suppliers, and help ensure that we stand ready to quickly increase production of small-caliber ammunition for the U.S. Army when needed," Small Caliber Systems general manager Jim Nichols said in a press release .
Orbital ATK Small Caliber Systems is one of the primary suppliers of 5.56, 7.62mm and .50 ammunition for the U.S. and allied militaries along with commercial customers. Prodution takes place at the Lake City Army Ammunition Plant in Independence, Mo., under U.S. Army oversight. It has produced over 17 billion rounds of ammunition since 2000.
The ammunition -- 5.56mm, 7.62mm, and .50 -- are the standerd ammunition used in U.S., NATO, and other countries' rifles and machine guns across the world. There is also civilian-government and civilian demand for security forces and recreational shooting.
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