Signal: BAE win $8.8bn deal for Holsten Army Ammunition Plant

BAE has won a $8.8bn contract to continue running the Holsten US Army ammunition plant for the next ten years.

Andrew Salerno-Garthwaite December 13 2023

BAE have won a ten year contract worth $8.8bn to continue running the Holsten Army Ammunition Plant in Kingston Tennessee, a US Government-owned, commercially-operated site for developing munitions that BAE has managed since 1999. 

The 75-year-old facility that has sustained a 24/7 production demand since the Korean War is ripe for a modernisation initiative focused on existing infrastructure and expanding the production capabilities for the development of new products, such as IMX-101, a replacement for TNT in artillery that Holsten developed in 2010 as a safer alternative. 

The success of IMX-10 lead to an International Munitions Safety Awards for Technical Achievement, and necessitated the expansion of IMX production capability at Holsten. 

"Our team is proud to continue our work as the operating contractor of the Holston Army Ammunition Plant," said John Swift, vice president and general manager of BAE Ordnance Systems Inc. "BAE Systems is committed to delivering safe, reliable products for our customers at a time when it matters most, while modernising the Holston Army Ammunition Plant to meet increased demand." 

BAE Systems Plc sales growth weakened from 2019 to 2021 before accelerating dramatically in 2022.

Demand for domestically produced ordnance has increased over the last two years as the war in Ukraine exposed shortfalls in certain munition stockpiles, particularly 155mm shells, and critical supply chain disruption has limited industry's capacity to ramp up production.

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