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Economy

Economy

BAE Systems signs US Army deal for M777 gun structures

People gather at the BAE Systems' booth during the Association of the United States Army (AUSA) Global Force Symposium & Exposition in Huntsville, Alabama, U.S. March 28, 2023. REUTERS/Cheney Orr/File Photo
People gather at the BAE Systems' booth during the Association of the United States Army (AUSA)... People gather at the BAE Systems' booth during the Association of the United States Army (AUSA) Global Force Symposium & Exposition in Huntsville, Alabama, U.S. March 28, 2023. REUTERS/Cheney Orr/File Photo
People gather at the BAE Systems' booth during the Association of the United States Army (AUSA) Global Force Symposium & Exposition in Huntsville, Alabama, U.S. March 28, 2023. REUTERS/Cheney Orr/File Photo
People gather at the BAE Systems' booth during the Association of the United States Army (AUSA)... People gather at the BAE Systems' booth during the Association of the United States Army (AUSA) Global Force Symposium & Exposition in Huntsville, Alabama, U.S. March 28, 2023. REUTERS/Cheney Orr/File Photo

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BAE Systems (BAES.L) announced the restart of structural manufacturing for its M777 lightweight howitzer after signing a first transaction worth up to $50 million with the U.S. army for the weapon, which was transferred to Ukraine.

The British defense business stated that it would collaborate with its suppliers in the UK and the U.S. to manufacture the titanium structures, with the first deliveries scheduled for 2025.

It said it would begin delivery while finalizing the contract’s specifics and overall amount. BAE Systems reported an upsurge in interest in the M777 gun system from Europe, Asia, and the Americas. The buildings were built in Barrow-in-Furness, England, and assembled and tested in Hattiesburg, Mississippi.

According to the company, Australia, Canada, and the United States have provided the weapons to Ukraine.

“This restart of production of the major structures for the U.S. Army’s M777s comes at a critical time, with howitzers deployed on operations in Ukraine,” said John Borton, vice president and general manager of BAE Systems Weapons Systems U.K.

According to BAE Systems, the deal will let new and existing users participate in a new M777 manufacturing program and benefit from the advantages of a hot production line and economies of scale.


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