General Dynamics Awarded $36 Million for 30mm M789 Cartridges

ST. PETERSBURG, Fla., Aug. 16, 2011 /PRNewswire/ -- General Dynamics Ordnance and Tactical Systems, a business unit of General Dynamics (NYSE: GD), has been awarded a $35.6 million contract for the production and delivery of 30mm M789 High Explosive Dual Purpose (HEDP) ammunition cartridges by the U.S. Army Contracting Command. Work will be performed at the company's Marion, Ill., operations.

The 30mm M789 HEDP is the primary tactical round of the Apache AH-64 helicopter, widely used in current combat operations. The Apache's ability to provide accurate air support with minimal collateral damage led to increased use and volume demands for M789 ammunition.

In 2010, the Army awarded General Dynamics a contract to establish a new, fully independent manufacturing capability for the M789 ammunition to meet the growing needs for the Apache combat round. This state-of-the-art production line was successfully completed ahead of schedule and completed First Article testing earlier in 2011. The new production line, and its independent supplier base, eliminates the potential of a single-point of production failure and provides the Army with sufficient production resources to deliver ammunition to the warfighter quickly and efficiently.

"This new M789 line provides our customer with a vital resource at a critical time of growing operational demands. Standing up this production line in concert with our supplier base was a significant challenge that we are extremely proud to have successfully accomplished ahead of schedule," said Tim McAuliffe, vice president and general manager of medium caliber ammunition for General Dynamics Ordnance and Tactical Systems.

General Dynamics was also recently awarded a $13 million contract by the same customer for the production and delivery of the 30mm M788 Training Practice (TP) cartridge.  The 30mm M788 is the low- cost target practice cartridge, ballistically matched to the 30mm M789 combat round.  Both rounds are used in the M230 chain gun. Work on this contract will also be performed at the Marion, Ill., operations.

"Production of the M788, combined with the new addition of the M789, enables General Dynamics to offer the most comprehensive family of lightweight 30mm tactical and training ammunition for the Apache worldwide," said McAuliffe.

For more information about General Dynamics Ordnance and Tactical Systems, please visit www.gd-ots.com.

More information about General Dynamics is available online at www.generaldynamics.com.

SOURCE General Dynamics Ordnance and Tactical Systems

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