Taiwan’s Mine Delivery System Procurement Request Gets State Department Clearance

The State Department has approved Taiwan’s request to buy Volcano anti-tank munition-laying systems mounted on M977A4 heavy expanded mobility tactical trucks, related equipment and services through a potential $180 million foreign military sales agreement with the U.S. government.

Northrop Grumman (NYSE: NOC) and Oshkosh (NYSE: OSK) will serve as principal contractors in the proposed transaction and will produce munition canister mines and M977A4 HEMTT vehicles, respectively, the Defense Security Cooperation Agency said Wednesday.

The proposed FMS deal also includes test ammunition rounds, logistics support packages such as spare parts and tool kits, organic depot production, technical manuals, operator and maintenance training support, engineering services, program management and other technical support services.

DSCA on Wednesday notified Congress of the potential sale, which will enable Taiwan to maintain a defensive capability, modernize its armed forces to deter adversaries and improve its security posture.

The transaction will require the deployment of one technical representative to Taiwan for up two years as well as U.S. government and contractor staff to support program management and equipment training and fielding activities over a period of five years.

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