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State Dept Clears $1.7B Main Battle Tank Recapitalization Deal for Kuwait

The State Department has approved Kuwait’s request to buy equipment and support services for the recapitalization of 218 General Dynamics-built (NYSE: GD) Abrams M1A2 main battle tanks under a potential $1.7 billion foreign military sales agreement with the U.S. government.

The Defense Security Cooperation Agency said Tuesday the deal covers 240 .50 Cal M2A1 machine guns, 480 7.62mm M240 machine guns. 240 AN/VRC-92E SINCGARS radios and 1, 085 AN/PVS-7B night vision goggles.

Kuwait also requested to procure depot-level support; training and support equipment; technical data and publications; and U.S. government and contractor engineering, technical and logistics support services, among others.

Other principal contractors for the sale include:

  • DRS Technologies
  • Honeywell (NYSE: HON)
  • Konsberg Defense Systems
  • Lockheed Martin (NYSE: LMT)
  • Meggitt Defense Systems
  • Miltope
  • Northrop Grumman (NYSE: NOC)
  • Raytheon (NYSE: RTN)

Kuwait plans to use the equipment to modernize and extend the service of its fleet of M1A2 full track tanks, DSCA noted.

The FMS deal will require the deployment of five to seven contractors and 25 to 30 U.S. government personnel to Kuwait.

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