Alliant Techsystems Inc. (ATK) has received a two-year contract from Mechanical and Chemical Industry Corporation (Makina ve Kimya Endustrisi Kurumu or “MKEK”). The deal extends their decade-long partnership and is a part of the 10-year extension signed in December 2010.
Per the $16.2 million contract, Alliant will provide 25mm tactical and training ammunition components to this Turkish defense firm. The munition, including M792 High Explosive Incendiary with Tracer, (HEI-T) M793 Target Practice with Tracer (TP-T) and M791 Armor Piercing Discarding Sabot with Tracer (APDS-T), will be supplied 2012 onward.
The Alliant-MKEK tie-up dates back to 1999 with the former having received net orders worth $40 million for training, equipment, technology transfers and 25mm components. All these years, Alliant has helped MKEK establish itself as a producer of medium caliber munitions through technology transfer and manufacturing assistance agreements.
Alliant focuses on a long-term strategy for international expansion through either direct sales or partnership. So, the company’s direct sales and transfer of technology pact with MKEK gels well with its global vision. Apart from the Turkish firm, Alliant supplies medium caliber munitions to more than 30 countries worldwide.
Last week, Alliant received a contract worth $12.6 million from the allied forces. The contract entails the company to supply 25mm M242 Bushmaster and 30/40mm Mk44 Bushmaster Automatic Cannon systems.
Earlier this week, Alliant entered into a long-term international distribution deal with Zaklady Chemiczne, a Polish company also known as Nitro-Chem. Per this deal, Alliant will sell Nitro-Chem produced TNT for both military and commercial applications as well as other explosive products and compounds, including boosters for commercial mining and construction, RDX, HMX, Comp B, and DNT. This partnership brings home growth prospects in domestic as well as international commercial energetics' markets.
Alliant Techsystems currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. The company competes with General Dynamics Corp. (GD) and Raytheon Co. (RTN).
Based in Minneapolis, Minnesota, Alliant Techsystems supplies aerospace and defense products to U.S. government agencies. The company also supplies ammunition and related accessories to law enforcement agencies and commercial customers.
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