American Ammunition, Inc. (AAMI) has entered into a teaming agreement with Israel Military Industries Ltd. (IMI), effective May 20, 2003. The expressed purpose of the agreement is to utilize complimentary assets and resources each has with respect to the manufacture, marketing and supply of small arms ammunition to governmental and private customers in the United States and worldwide.
AAMI and IMI agree to cooperate on a non-exclusive basis. The program is effective for a period of one year. AAMI will be the prime contractor and IMI will be the main subcontractor for the performance of the first project covered by the agreement. The first project within the scope of the teaming agreement has been agreed upon.
IMI is a government-owned company organized and existing under the laws of Israel having its principal office in Ramat Hasharon, Israel, and is engaged in the production of small arms ammunition utilizing technology and skills not currently utilized by AAMI.
"We are pleased that IMI has agreed to work with us. IMI technology and workforce brings to the table added technology and skills that we are not in a position to presently acquire and work with. This cooperative agreement will enable AAMI to extend and expand its markets with additional products and additional volume," AAMI President and CEO Andres Fernandez stated.
IMI’s General Manager of Small Arms Ammunition Division Eli Gold stated, "AAMI brings to IMI a presence in the United States from which we can through team development and effort exploit new markets and share our technologies. We consider this development effort productive for IMI and look forward to the relationship."
AAMI is an autonomous manufacturer of ammunition. The ammunition industry has experienced a 28 percent average increase in revenues annually between 1991 through 1998, and the trend is expected to continue through the year 2005 and beyond. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
