Teaming Agreement Announced for Domestic Munitions Manufacturing Arrangements Competition

21 Januari 2011

Munition for Army (photo : Australian Aviation)

Chemring Australia today that it has teamed with Raytheon Australia and Poongsan Corporation to bid for the Domestic Munitions Manufacturing Arrangements (DMMA) project. The DMMA project aims to deliver new commercial arrangements for the manufacture and supply of domestically produced munitions, replacing the Strategic Agreement for Munitions Supply (SAMS) and Mulwala Agreements upon their expiry in June 2015.

This industry team draws together three recognised global munitions companies with extensive expertise, experience, and infrastructure in the manufacture and supply of energetic materials, guided munitions and non-guided munitions. This collaboration will ensure the transfer of manufacturing technology and processes which will significantly reduce costs whilst strengthening this designated Priority Industry Capability for Australia.

Chemring Australia is the country’s foremost manufacturer and supplier of expendable countermeasures and military pyrotechnics. Chemring Australia is part of the global Chemring Group PLC, which is the world leader in expandable countermeasures, and is a niche manufacturer of munitions and energetic materials.

Raytheon Australia, a subsidiary of Raytheon Company, is a highly capable prime contractor with an engineering and technical workforce of 1300 backed by world-class management systems and access to the global resources of Raytheon Company. It has an extensive mission support pedigree and performance in the transition and delivery of complex commercial and personnel requirements.

Poongsan Corporation, based in the Republic of Korea, is renowned for its design, development and manufacture of small, medium and large calibre ammunition and propellant. The company is the designated general ammunition manufacturer to the South Korean Government and recognised as a leader in the provision of conventional ammunition to the global market, with an overseas customer base that spans 60 countries including the USA and Australia. Together, Chemring Australia, Raytheon Australia and Poongsan propose an innovative and comprehensive offering that will meet the strategic objectives of the Defence White Paper, the Strategic Reform Program and the Defence Industry Policy Statement. The team’s cost effective end-to-end solution will be tailored to the needs of the ADF and squarely focused upon delivering a comprehensive range of cost effective munitions and technology whilst ensuring the transfer of valuable skills to the domestic workforce.

To this end, the team’s solution will increase capability to the ADF and reduce the operating costs to Defence through the provision of a holistic solution that draws upon the expertise, infrastructure and global markets within the team. Mr Michael Flowers, Managing Director of Chemring Australia, said “This is a great opportunity to develop a solution that genuinely fulfils the needs of the customer for the supply of munitions for the long term, whilst delivering sustainable and competitive domestic manufacturing capability”.

(Chemring)