The agreement, signed under contract W519TC-25-C-0032, is valued at USD 636.2 million, with the formula allowing for possible amendments depending on economic conditions. The subsidiary of the Czech holding submitted the sole electronic bid for the project.
The contract covers the construction of a new 155 mm ammunition production line at IAAP in Middletown, Iowa. The line will provide capacity for projectile manufacture, loading and packaging of finished shells, with work scheduled for completion by 10 August 2029.
The IAAP currently produces 155 mm artillery ammunition, 120 mm tank rounds, 60 mm, 81 mm and 120 mm mortar rounds, as well as warheads for TOW-2, Hellfire, Javelin, Stinger and Sidewinder missiles. It also manufactures hand grenades, engineer charges, ceremonial ammunition and test munitions.
The government-owned factory is operated by American Ordnance LLC. The expansion contract follows the US Department of Defense’s plans to significantly increase production of all types of ammunition in the coming years.
