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Gun Reports - News

BAE, Winchester Form Joint
Venture to Pursue
Ammo Contract

(GunReports.com) -- BAE Systems and Olin Corporation's Winchester Ammunition Division have formed a joint venture to pursue the U.S. Army's contract to manage, operate and maintain the Lake City Army Ammunition Plant.

The new company, called U.S. Munitions, LLC, will submit a proposal for the contract, which has a potential value in excess of $2 billion in sales over 10 years.

U.S. Munitions combines the capabilities of BAE Systems Ordnance Systems, a subsidiary of BAE Systems, Inc., and Winchester Ammunition, a division of Olin Corporation.

Officials say that the experience and capabilities of BAE Systems and Winchester Ammunition will allow U.S. Munitions to offer the Army a solid track record of partnering with military customers at government-owned and contractor-operated facilities like the Lake City plant, and bring a history of performance and accountability in meeting the military's needs for small-caliber ammunition, which Lake City produces.

The Army has solicited proposals for the Lake City contract and is expected to reach a decision by October 2012. The new operating contract is scheduled to begin fully on October 1, 2013, following a one-year transition period.

The Lake City plant, which began production in 1941, provides small-caliber military ammunition for both training and combat purposes. The plant also serves as a national and regional test center for ammunition performance and weapons firing.

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