Canberra, Aug 2, 2010 (ABN Newswire) - Electro Optic Systems Holdings Limited (
ASX:EOS) (PINK:EOPSF) has been awarded a new contract for delivery of remote weapon systems. The contract value is approximately A$10 million and the systems will be delivered within 6 months.
The order is from an existing customer for EOS remote weapon systems, and specifies the delivery of EOS R-400 products.
Commenting immediately after the award of the contract today, the Chief Executive of EOS, Ben Greene said:
"This award lifts the quantity of unfilled orders for weapon systems above the current annual production capacity of EOS for specific product variants. With ongoing marketing efforts, we expect the existing capacity limits to be inappropriate for future operations."
"In expectation of achieving this order threshold, the company has planned a simultaneous consolidation and expansion of its production capacity in the US. This plan is now being executed."
"The Barrington (Illinois) production plant acquired from ROI in November 2009 will be closed immediately and EOS' production capacity in Tucson (Arizona) will be substantially expanded. The consolidation will result in substantial cost savings for EOS, while the expanded Tucson capacity will meet current and future demands."
"In particular the upgraded Tucson plant, to be on line by November 2010, will be able to support rapidly-scalable large scale production as required for the US Army CROWS program. The Army requirement for rapid adjustment of both production volume and product technical configuration in response to urgent needs is not readily met by most production capabilities in this industry, word-wide."
"The commercial need to re-configure and update production capabilities allows EOS to meet these needs with changes implemented in the normal course of business, well before any need arises under the CROWS program. EOS will rely on its CROWS program partner, Northrop Grumman Corporation (NYSE:NOC), for specialist advice and technology transfer to ensure that the new US capabilities will integrate seamlessly with Northrop Grumman supply chain and production control processes for CROWS."
EOS is also reviewing its Australian production capabilities in the light of developing market trends in the Australian region.
ASX:EOS) (PINK:EOPSF) has been awarded a new contract for delivery of remote weapon systems. The contract value is approximately A$10 million and the systems will be delivered within 6 months.The order is from an existing customer for EOS remote weapon systems, and specifies the delivery of EOS R-400 products.
Commenting immediately after the award of the contract today, the Chief Executive of EOS, Ben Greene said:
"This award lifts the quantity of unfilled orders for weapon systems above the current annual production capacity of EOS for specific product variants. With ongoing marketing efforts, we expect the existing capacity limits to be inappropriate for future operations."
"In expectation of achieving this order threshold, the company has planned a simultaneous consolidation and expansion of its production capacity in the US. This plan is now being executed."
"The Barrington (Illinois) production plant acquired from ROI in November 2009 will be closed immediately and EOS' production capacity in Tucson (Arizona) will be substantially expanded. The consolidation will result in substantial cost savings for EOS, while the expanded Tucson capacity will meet current and future demands."
"In particular the upgraded Tucson plant, to be on line by November 2010, will be able to support rapidly-scalable large scale production as required for the US Army CROWS program. The Army requirement for rapid adjustment of both production volume and product technical configuration in response to urgent needs is not readily met by most production capabilities in this industry, word-wide."
"The commercial need to re-configure and update production capabilities allows EOS to meet these needs with changes implemented in the normal course of business, well before any need arises under the CROWS program. EOS will rely on its CROWS program partner, Northrop Grumman Corporation (
NYSE:NOC), for specialist advice and technology transfer to ensure that the new US capabilities will integrate seamlessly with Northrop Grumman supply chain and production control processes for CROWS."EOS is also reviewing its Australian production capabilities in the light of developing market trends in the Australian region.
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About Electro Optic Systems Holdings Limited
Electro Optic Systems Holdings Limited (EOS)(ASX:EOS) develops, manufactures and sells sophisticated aerospace technology with a wide range of applications through two business divisions - military and space.
EOS' remote weapon systems enable a weapon to be fired rapidly and accurately by a gunner safely relocated away from the weapon. Typically the technology is applied for mounting weapons on the top of an armoured vehicle, and the gunner inside the vehicle. EOS remote weapon systems have been produced in significant numbers for US Army, NATO forces, Australia, and other countries around the world.
EOS' space division is as a manufacturer of telescopes and technology to support space surveillance and space debris management, including removal. In space surveillance, EOS's laser tracking systems and computer technology can simultaneously track tens of thousands of orbiting objects - as small as 2 cm in diameter -while its space ablation technology and systems can potentially alter the orbits of objects (e.g. satellites) in space
EOS has around 140 employees, based in Canberra (Australia), Tucson (Arizona), Singapore and Deggendorf (Germany). The company also has manufacturing centres in Queanbeyan and in Tucson, Arizona.
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