BAE Systems has been awarded a ten-year operating contract by the US Army to manage, operate and maintain the Radford Army Ammunition Plant in south-west Virginia, US.

The $850m operating contract includes three five-year options which, if fully exercised, will extend the award to 2036.

BAE Ordnance Systems will operate the facility, established in 1941, which manufactures propellants for military munitions.

Ordnance Systems vice-president and general manager Jerry Hammonds said the company would provide innovative ideas as well as cost-effective solutions for safe, secure and efficient facility operations.

US Army Holston Army Ammunition Plant is also being contract-operated by BAE.