General Dynamics Earns $36 Million U.S. Army Contract


General Dynamics will likely add defense jobs thanks to a new Army contract.

General Dynamics Ordnance and Tactical Systems was recently awarded a $35.6 million contract by the U.S. Army Contracting Command to produce and deliver 30mm M789 High Explosive Dual Purpose ammunition cartridges.

Production will take place in Marion, Illinois, and the company could need to hire employees with security clearance for the duration of the contract.

"This new M789 Line provides our customer with a vital resource at a critical time of growing operational demands," said Tim McAuliffe, vice president and general manager of medium caliber ammunition for General Dynamics Ordnance and Tactical Systems.

This most recent contract will coincide with an existing contract through the same customer for the production and delivery of 30mm M788 Training Practice cartridges designed as a low-cost yet ballistically matched alternative to the 30mm M789 cartridges to be used for target practice.

According to CNBC, General Dynamics was also awarded a contract from the U.S. Army last year to build a manufacturing facility designed exclusively for ammunition, and opening up the opportunity to create new defense jobs and intelligence jobs. The project was completed earlier in 2011.