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Teaming Agreement Announced for Domestic Munitions Manufacturing Arrangements Competition

Canberra – 17 January 2011: Raytheon Australia today announced that it has teamed with Chemring 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.

The Raytheon Australia 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.

Raytheon Missile Systems is a global leader in the manufacture of precision guided munitions and is the primary supplier to the ADF of the majority of classes of in-service guided munitions. Raytheon Australia is a subsidiary of Raytheon Company with an impeccable record in contract delivery and performance across all domains.

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 expendable countermeasures, and is a niche manufacturer of munition components and energetic materials.

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, Raytheon Australia, Raytheon Missile Systems, Chemring 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. Selection of the Raytheon team and its proud record of contract performance also offers the opportunity to minimise program transition risk. 

In announcing the teaming agreement, the Managing Director of Raytheon Australia, Mr Michael Ward, emphasised the importance of a comprehensive and sustainable approach to the domestic manufacture and supply of munitions. He also pointed to Raytheon Australia’s extensive mission support pedigree and performance in the transition and delivery of complex commercial and personnel requirements.

Mr Ward welcomed the Raytheon team for the DMMA project. “Raytheon is proud to be associated with Chemring and Poongsan in what is a formidable team. Together we believe that by focusing on capability, cost and seamless transition management as well as the expectations of our customer we will be well positioned to become a trusted partner in Australia’s munitions manufacture and management.”

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Raytheon Company (NYSE: RTN), with 2009 sales of $25 billion, is a technology and innovation leader specializing in defense, homeland security and other government markets throughout the world. With a history of innovation spanning 88 years, Raytheon provides state-of-the-art electronics, mission systems integration and other capabilities in the areas of sensing; effects; and command, control, communications and intelligence systems, as well as a broad range of mission support services. With headquarters in Waltham, Mass., Raytheon employs 75,000 people worldwide.

Further information:
Jessica Thomas
0427 216 236
jessica.thomas@raytheon.com.au