Orbital ATK receives $115M to produce Army ammunition

April 11 (UPI) -- Orbital ATK announced Wednesday it was awarded a $115 million contract by the U.S. Army to produce small-caliber ammunition.

The 5.56mm, 7.62mm and .50 caliber ammunition will be manufactured at the Lake City Army Ammunition Plant in Independence, Mo., which is owned by the U.S. government and operated by Orbital ATK.

"This latest order continues a long history of supplying only the highest quality, most reliable ammunition to our warfighters," Jim Nichols, vice president and general manager of Orbital ATK's Small Caliber Systems division of the Defense Systems Group, said in a press release.

"Working with the U.S. Army, we will continue to focus on readiness, reducing risk, accelerating new capabilities while meeting operational demands and continuing key cost-effectiveness measures."

In collaboration with the U.S. Army, the company recently modernized it's Lake City Army Ammunition plant, located in Independence, Mo., which is owned by the Army but operated by Orbital.

In all, Orbital ATK has invested more than $100 million in the plant since 2012. The plant originally was established by Remington Arms in 1941 to manufacture and test small caliber ammunition for the U.S. Army.