State Department OKs $440M Ammunition, Logistics Support Sale to Taiwan

The State Department has approved a pair of proposed agreements worth $440.2 million combined to sell ammunition and logistics supply support to Taiwan.

Taiwan’s economic and cultural representative office asked to procure various unclassified 30 mm ammunition, including multi-purpose rounds, high explosive incendiary-tracer rounds and training rounds under a potential $332.2 million FMS deal, the Defense Security Cooperation Agency said Thursday.

Alliant Techsystems Operations and General Dynamics‘ (NYSE: GD) ordnance and tactical systems business will serve as principal contractors on the ammunition deal to sustain Taiwan’s CM34 armored vehicles.

The Taiwanese government also requested to buy repair and spare parts for vehicles, small arms and combat weapon systems and related program support as part of the proposed $108 million cooperative logistics supply support arrangement.

The Defense Logistics Agency will determine the principal contractors on the potential transaction.

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