DUESSELDORF (Reuters) - Germany’s NP Aerospace has won a contract for ammunition and armour plating for a number of German Army vehicles, which will increase the company’s capacity for its US sales programme, NP said on Monday.
“This is a new contract, so it has given us a sales order in America,” Chief Executive Karl Buerger told Reuters. “This contract gives us a very significant order but it’s still unallocated.”
NP’s contract to provide ammunition and armour plating to a specific fleet of M1A2 main battle tanks is worth 30 million euros ($34 million) per year and comes in addition to U.S. safety mandate because of German procurement delays, the firm said.
Shares in NP were up 0.63 percent at 17.5 euros at 0840 GMT, above a Munich-listed index down 0.2 percent.
It will be the first time the bullets and armour plate are fitted to the German Army in 20 years, and NP will provide the shell armour plating.
“It’s a very nice contract, one with a long time horizon,” Buerger said.
($1 = 0.8724 euros)