A huge tender for the supply of MRAP (mine resistant ambush protected) vehicles for the US military closed recently. The tender, for the supply of vehicles to US forces in Afghanistan, was won by US company Oshkosh, and is worth $1.05 billion. There is also an Israeli connection. Plasan Sasa will be a subcontractor in the project. Its share will amount to some $300 million.
Sources inform "Globes" that another company that will benefit from teh order is FMS Enterprises Migun (TASE: FBRT), which will be a subcontractor to Plasan Sasa. FMS produces a unidirectional composite of polyethylene fibers used in the armor industry for protection against ballistic threats.
FMS shares rose 9% yesterday and another 2.5% today.
FMS said, "Plasan Sasa is a customer of the company, but as far as the current tender is concerned, it is not yet clear what, if any, will be the value of orders that will result from it."
Under the contract, Oshkosh will produce 2,200 MRAP vehicles in 2009, each costing about $500,000. The contract includes an option on a further 3,000 vehicles in 2010.
Published by Globes [online], Israel business news - www.globes.co.il - on July 2, 2009
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