(Alliance News) - Avon Protection PLC has secured a contract worth up to USD87.6 million over two years to develop and supply the US Army with head protection equipment, the company announced Wednesday.
The contract replaces the previous agreement announced last September, which was withdrawn following a competitor protest.
The US army has already placed a USD1.3 million order for first article test samples for delivery in the first half of Avon's financial year 2022.
"Production under the contract will follow on from the existing low-rate initial production contract for the first generation IHPS which, following the extension announced on 1 April 2021, is due to end in 2022," Avon said.
The Wiltshire, England-based company - formerly known as Avon Rubber - makes protection equipment for use by military, police, industrial and fire service personnel.
Shares were trading up 0.9% at 1,792.00 pence each in London on Wednesday morning.
"I am delighted that Avon Protection will continue to work with the US Army to deliver the next generation Integration Head Protection System. This contract demonstrates our ongoing commitment to developing next generation ballistic protection systems and further strengthens the medium-term outlook," commented Chief Executive Paul McDonald.
By Will Paige; willpaige@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
Avon Protection (AVON)