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BAE Systems Finalizing Major Modernization at Holston Army Ammunition Plant

  BAE Systems Finalizing Major Modernization at Holston Army Ammunition Plant

Business Wire

KINGSPORT, Tenn. -- February 4, 2013

The U.S. Army has granted BAE Systems a $27 million contract to complete
construction of a state-of-the-art and energy-saving chemical processing
facility at the Holston Army Ammunition Plant in Tennessee. The new facility,
when finished later this year, will transform and modernize the way acetic
acid and acetic anhydride are produced, stored and handled at the plant for
manufacturing military explosives.

BAE Systems has been the operating contractor of the Holston plant since 1999,
developing innovative ...

BAE Systems has been the operating contractor of the Holston plant since 1999,
developing innovative products such as IMX-101, which the Army approved as the
first safe and effective replacement to TNT in artillery. (Photo: BAE Systems)

“This is one of the most important projects at Holston since it opened in
1942,” said Jerry Hammonds, vice president and general manager of BAE Systems
Ordnance Systems, which manages and operates the plant. “The facility will
significantly reduce energy usage and cut other costs, saving money for the
Army and for taxpayers.”

The Holston plant is an Army-owned, contractor-operated site that produces a
range of explosive fills, such as RDX and HMX, for artillery and other
munitions. Since World War II, chemicals like acetic acid and acetic anhydride
have been processed at a 110-acre site located 7 miles from the main plant. A
rail corridor and a series of pipelines currently carry the chemicals back and
forth during manufacturing. The new processing facility, in comparison, will
occupy just 10 acres on the main site. It will improve operating efficiency at
the plant, decrease production and maintenance costs, and reduce safety and
environmental risks associated with transporting and pumping chemicals.

The facility, designed by BAE Systems for the Army, will also utilize
combined-heat-and-power technology — also called cogeneration — to produce
steam from natural gas to process the chemicals. The resulting electricity
will be able to power at least 90 percent of the entire plant, a major step
forward in meeting Holston’s goal of energy independence.

The $27 million contract initiates the final phase of construction, which
began in 2011. The total cost of the Army project will be approximately $143
million, the largest single investment at Holston.

BAE Systems Ordnance Systems, Inc. is a subsidiary of BAE Systems, Inc. The
company is an industry leader in managing government-owned and
contractor-operated munitions sites for the U.S. military. BAE Systems has
been the operating contractor of the Holston plant since 1999, developing
innovative products such as IMX-101, which the Army approved as the first safe
and effective replacement to TNT in artillery. In 2012, the company began as
the operating contractor of the Radford Army Ammunition Plant in Radford,
Virginia. The Radford plant, similar to Holston, manufactures a range of
propellants for military munitions.

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Contact:

BAE Systems
Neil Franz
Office: 301-838-6446
Mobile: 240-687-0127
neil.franz@baesystems.com
or
Tony Hewitt
Office: 423-578-6255
Mobile: 423-534-5618
tony.hewitt@baesystems.com
www.baesystems.com