BAE Radford Ammo Plant to Get $240M Upgrade

A Radford, Va.-based ammunition production plant run by BAE Systems is set to get a $240 million upgrade, the Roanoke Times reports.

The British contractor’s U.S. subsidiary took charge of the Radford Army Ammunition Plant from ATK (NYSE: ATK) July 1 and could break ground on a new facility for producing nitrocellulose in 2013, the newspaper reports.

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BAE holds a potential 10-year, $850 million contract including options that could have the subsidiary run the U.S. government-owned plant through 2037.

The plant produced 1 million to 1.2 million pounds of propellant solely through BAE efforts as of Sept. 6, spokeswoman Alicia Gray told the newspaper.

Hercules Inc. was the original operator of the plant until 1995, when ATK acquired the firm.

ATK runs the Lake City Ammunition Plant in Missouri for the Army under a seven-year contract.

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