Progress for Nammo in Poland

The US company Lockheed Martin (LM) and Nammo have cooperated in the defence market for many years.

The US company Lockheed Martin (LM) and Nammo have cooperated in the defence market for many years. During the last two years LM Aero and Nammo have explored the possibility to launch a Transfer of Modern Ammunition Technology project from Nammo to the Polish ammunition factory MESKO (in Skarzysko Kamienna) supported through LM Aero’s Polish Offset Obligations.

2. The Polish market’s requirement for modern ammunition is demanded by their new defence projects

· New Fighter Airplanes F-16: 20mm ammunition and 70mm Rocket Systems
· New 8-wheeled Infantry Fighting Vehicles: 12.7 and 30mm ammunition
· Upgrade of helicopters: 70mm Rocket Systems
· Introduction of new 12.7mm Anti-Material Rifles
· Possible upgrade of existing APC vehicles
· Introduction of 12.7mm Heavy Machine Guns in the Navy
· Leopard II Main Battle Tanks acquired

3. LM Aero and the Polish Government signed an agreement on 19 January 2005 where transfer of Nammo’s modern ammunition technology to MESKO is included. Nammo will also transfer to MESKO licenses for the production and sale of these products to the Polish market, and to other markets. The Total Credit Value (after multiplier) for LM Aero is 876 Million USD. The Projects are as follows:

· 12.7mm ammunition family
· 20mm ammunition family
· 30mm ammunition family
· Components for Medium Caliber Ammunition
· Development of 70mm Rocket Motor and assembly with Warhead of complete Rocket Systems
· Safe and environmentally friendly demilitarization of outdated ammunition

4. LM Aero and Nammo have a separate agreement, whereby LM Aero will provide financial support to Nammo for transfer of technology for these Projects to MESKO. This will enable Nammo to also include Capital Investments at MESKO for establishment of modern production technology. The performance window for these Offset Commitments is the years 2005 through 2013. For Nammo this will mean long term cooperation with Mesko for the Polish and other markets with the potential of development of additional projects in the future.

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