18 Feb Demand Increases for EOS Defence Products
The UAE Armed Forces has announced a contract of approximately $450 million to EOS for remote weapon systems for UAE Navy and for critical UAE infrastructure protection. The announcement was made at the International Defence Exhibition [IDEX] in Abu Dhabi and published in UAE press on 18 February.
This $450 million announcement is effectively an upgrade of $40 million to the contract valued at $410 million previously announced by EOS on 31 January 2018. The IDEX announcement relates to amendments to this contract, principally through the exercise of contract options.
Speaking at the formal contract announcement at IDEX, the Group Chief Executive of EOS Defence Systems, Ben Greene said:
“This announcement confirms EOS as the largest global provider of remote weapon systems. This is a significant achievement considering the tight restrictions placed on access to these EOS products by the combined defence export license processes of the USA and Australia.”
“EOS now has a pipeline of firm orders and written customer commitments of around $700 million which provides the basis for strong revenue for EOS Defence Systems well into the future.”
Also present at the IDEX announcement was Grant Sanderson, Chief Executive of EOS Defence Systems, who added:
“This award reflects growing market appreciation of the excellence of EOS defence products. In the past two years EOS has achieved a contract award in every instance where it has offered its weapon stations to a sovereign customer approved to receive the product through export license processes in both the USA and Australia.”
“The order backlog for weapon systems now includes seven sovereign customers, representing a continuing diversification of our customer base. The majority of this backlog will be produced at EOS’ Australian plant at Hume, ACT. Production capacity in EOS’ Huntsville plant in the USA will be added as awards expected late in 2019 are secured.”
“New products, such as the lightweight R-150 weapon station, are expected to achieve sales from 2019. Further releases of products to expand the EOS product range in this market are imminent.”