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Home Front: Politix
ATK: Ammo for Uncle Sam, and for Us, Too
2011-09-13
Condensed to include just this part about ATK
ATK's largest responsibility regarding national defense is running the Lake City Army Ammunition Plant in Independence, Missouri. Back in WW2, the U.S. ran six small arms ammo-manufacturing plants, but Lake City is now the only one left. The government still owns the plant, but ATK has operated it since 2001. That makes ATK at Lake City the sole source for 99% of the 5.56 NATO, 7.62 NATO, and .50 BMG ammo used by every branch of the U.S. military.

How much ammo do they make? Operating at maximum production capacity for the last few years, Lake City has managed to crank out an average of about 1.4 billion, yes BILLION, rounds a year, and still they barely meet the demands of fighting our wars in Iraq and Afghanistan.

In May 2011, the US Army decided that they really liked the 100 million rounds of M855A1 Enhanced Performance Round ammo that ATK had built so far. ATK had helped develop the new round, which uses no lead in its copper and steel bullet construction. The Army was impressed with its superior stopping power, especially at extended ranges, and its improved barrier penetration.

They signed a new $488 million contract for ATK at Lake City to crank out this latest generation of 5.56 ammunition, along with more badly needed 7.62 and .50 cal ammo for our troops.

There are some concerns about Uncle Sam putting all of its ammo production eggs in one basket at Lake City. Although ATK is working on a $242 million modernization project there, it will not actually result in an increased capacity to make more ammo than the plant currently produces.

Producing 99% of our military ammo in one place has physical risks as well; although the plant is well guarded and safety rules strictly followed, a terror attack or industrial accident could potentially cripple America's ability to wage war.
Here's the money line
The primers used in making the military ammo also contain a less obvious national security risk--of the 13 chemicals used to make the primer compound, 10 of them are imported from outside the country. For example, four of the chemicals can only be found in China, and two can only be found in Mexico.

If either of those countries were unwilling, or unable, to export these chemicals to us in the future, we would need to come up with a new way to make primers. However, solving these issues is not up to the private company doing what the government tells them; it is up to our policymakers.

ATK is the company trusted by our military to make the billions of rounds of ammo needed by our troops around the world. ATK's parent company, Honeywell, was one of the early adopters of the "Six Sigma" quality control process, in which 99.99966% of products manufactured are expected to be free of defects. Put another way, this means 3.4 defects per million products made.

The ATK subsidiaries building products for the civilian market are held to the same standards, and as a result, their quality is recognized throughout the industry. When making your next high-quality ammo purchase, do not be surprised if the brand you choose turns out to be an ATK-owned company.
Posted by:Sherry

#5  Pleasure Skid. Here's a much, much better one NYSE:HCN
Posted by: Besoeker   2011-09-13 01:16  

#4  Good tip B. Thanks.
Posted by: Skidmark   2011-09-13 01:05  

#3  So when does the 25mm air bursting munition go on sale at Walmart?
Posted by: Eohippus Phater7165   2011-09-13 00:38  

#2  NYSE:ATK
Posted by: Besoeker   2011-09-13 00:34  

#1  ATK is also heavily involved in producing fuselage and wing panels for the F-35.
Posted by: USN, Ret.   2011-09-13 00:23  

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