Proactive Investors - BAE Systems (LON:BAES) has penned yet another multi-million dollar deal with the US Army this week, this time for artillery pieces.
Structures for BAE’s M777 lightweight howitzer will re-enter production under the deal, which is currently limited to US$50 million and will see deliveries begin in early 2025.
Production of the titanium structures, which form the basis of the artillery pieces, had been paused last year after a dip in demand.
However, on the back of fighting in Ukraine - where models of the howitzers have been sent - BAE said nations had reignited interest.
“BAE Systems has seen an increase in interest from across Europe, Asia, and the Americas in the M777 gun system,” vice president John Borton said.
“This new contract creates the optimum conditions for a restart of M777 production in the UK,” he added.
“[It] presents an opportunity to new and existing users to join a new M777 production initiative and take advantage of the benefits from a hot production line and economies of scale.”
BAE already signed a US$78 million deal with the US Army earlier this week, expanding on an existing contract for infantry fighting vehicles.
Under this, existing models of the M2 Bradley Infantry Fighting Vehicle will be retrofitted and made into the later M2A4 version, with the total contract now amounting to US$750 million.
Canada and Australia have joined the US in donating models of the M777 to Ukraine meanwhile, with Borton adding the gun would “remain at the forefront of artillery technology well into the future”.