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General Dynamics Wins Deal to Demilitarize Munitions

General Dynamics (NYSE: GD) Ordnance and Tactical Systems picked up a $37 million contract from the U.S. Army Contracting Command for demilitarization of munitions.

The deal carries a $163 million value over five years if all options are exercised.

The firm reports it “will demilitarize eight munitions families including High Explosive bombs, Improved Conventional Munitions, fuzes, Explosive D bombs and ammunition ranging for 25mm to 106mm calibers. The ammunition-demilitarization process involves the separation of the munitions’ elements, such as explosives, metal parts and plastics. About 95 percent of the processed materials are reclaimed for recycling while the remaining elements are destroyed through a safe thermal treatment process.”

“Demilitarization of aged munitions is an important step in the lifecycle management of the U.S. ammunition stockpile.  General Dynamics has been the prominent commercial provider of demilitarization services to the U.S. Defense Department for over 15 years, and has a long legacy of on time execution in ammunition demilitarization. Our state-of-the-art demilitarization processes allow us to continue to provide high quality, competitive demil services to our customer, ” said Dr. Dean Bartles, general manager and vice president of large caliber ammunition for General Dynamics Ordnance and Tactical Systems.

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