On Thursday, British defense company BAE Systems PLC BAESY announced signing an agreement with the U.S. Army for M777 lightweight howitzer major structures under an Undefinitized Contract Action (UCA), which is currently limited to $50 million.
BAE Systems will work with its supply chain in the U.K. and the U.S. to manufacture M777 titanium structures, which form the basis of the gun.
The company has seen an increase in interest from across Europe, Asia, and the Americas in the M777 gun system, creating an opportunity for a restart of M777 production in the U.K.
"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 UK.
This artillery piece, last ordered five years ago, is seeing renewed interest due to its battlefield effectiveness in the ongoing Ukraine conflict, reported the Wall Street Journal.
BAE Systems anticipates future contracts for complete M777 guns, as inquiries from over eight countries have increased since the war's inception, as per the report.
The M777 howitzer, despite needing to be towed into position, has gained preference for its reliability, ease of use, and simple repair process compared to more nimble self-propelled howitzers, the report added.
"The M777 will remain at the forefront of artillery technology well into the future through the use of technical insertions, long-range precision guided munition developments, and flexible mobility options," Borton added.
Price Action: BAESY shares closed higher by 2.26% at $58.55 on Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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