Sunday, December 18, 2016

Huge M1A2 order from Kuwait

via Fox Business
General Dynamics landed a huge arms contract Opens a New Window. in August when Saudi Arabia requested permission to purchase $1.15 billion worth of M1 Abrams main battle tanks for its army. At least, the contract looked huge at the time. Now, it looks positively tiny...
Because General Dynamics just scored a second tank contract last week that's 50% bigger.
Once again, General Dynamics is benefiting from turbulence in the Middle East.
As we learned earlier this week from an official U.S. Defense Security Cooperation Agency notification Opens a New Window. to Congress, the government of Kuwait has asked Congress to approve the sale of a "recapitalization" package for 218 of its M1A2 main battle tanks. According to DSCA, this recapitalization will include the sale of 240 .50-caliber M2A1 machine guns and 480 7.62 mm M240 machine guns to install on the tanks, plus upgraded armor and engines, new 120 mm cannon tubes and remotely operated weapons stations, and assorted radios, night vision goggles, infrared sights, and other hardware.
In total, the recapitalization, which is essentially a rebuilding and upgrading of the entire tank fleet, will be worth $1.7 billion in revenue to principle contractor General Dynamics, which builds the M1. Other companies named as principal contractors include American contractors Raytheon, Northrop Grumman, Lockheed Martin, and Honeywell, and also Norwegian defense giant Kongsberg.
Bad times and rumors of war in the middle east is good news for defense  contractors.

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