Sign up Australia
Proactive Investors - Run By Investors For Investors

Electro Optic Systems expands capacity as order book grows

The company recently executed a $170 million contract to supply weapon systems.
A weapon system mounted on a vehicle
Electro is expanding into a larger facility in Australia

Electro Optic Systems Hldg Ltd (ASX:EOS) is significantly expanding its production capacity after executing a major weapon systems order and becoming the preferred tenderer for two others.

The company produces robotic or remotely-controlled weapon systems, tailored to mount customer weapon inventories.

Electro had executed a $170 million contract to supply weapon systems to aerospace and defence systems company Orbital ATK Inc (NYSE:OA) in June this year.

The contract, deliverable from 2017 to 2020, relates to Electro’s new R-400S-Mk2 weapon system product, released to the market early in 2017.

The R-400S-Mk2 product has been tendered for two other international customers who have chosen Electro as their preferred bidder for contract negotiation.

Significantly, the company now expects to exceed $500 million in 2017 orders for its new weapon system.

Electro has entered into an agreement for a larger facility in Australia that has a production capacity of $150 million per annum per shift to be operational from Q1 2018.

The company has been working with its suppliers to increase capacity, improve quality and reduce risk through just-in-time supply chain management.

Electro’s shares were last trading circa 8% higher intra-day, at $2.75.

Register here to be notified of future EOS Company articles
View full EOS profile View Profile

Electro Optic Systems Holdings Ltd Timeline

Related Articles

Plastic bags
September 08 2017
"Ours is the only one that has been approved so far"

© Proactive Investors 2017

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use