The French armament procurement agency Direction (DGA) has just awarded NEXTER Munitions a Multi-Annual Contract for the development, qualification and production of large-caliber ammunition.
The first part of this contract, worth ˆ138m, comprises development and qualification of 155/52-calibre illumination and smoke shells; the supply of modular charges for CAESAR© artillery; the supply of explosive 120-mm cartridges for Leclerc Main Battle Tank and 105-mm practice cartridges for AMX 10 RCR armored vehicles; and resumed production of 100-mm cartridges for the French Navy.
This package contract covers the Armed Forces' requirements for large-caliber ammunition and gives France guarantees regarding the short and medium-term sustainability of the business of its supplier NEXTER Munitions for both development and production of large-caliber ammunition. In addition, the flow of production protects the fabric of suppliers, giving them visibility and sustainability.
The multi-annual nature of the supply contracts also ensures better price control in an extremely competitive global market.