Orbital ATK has secured a $92m contract for the production of small-calibre ammunition for the US Army.

Under the contract, the company will produce 5.56mm and 7.62mm ammunition at the Lake City Army Ammunition Plant (Lake City) in Independence, Missouri.

The facility was recently upgraded by the army and the company for enhanced product quality, performance and efficiency.

It also received operational improvements for safety and environmental stewardship, Orbital ATK stated.

“Orbital ATK is honoured to continue our longstanding support of the US Armed Forces and its allies by providing them with reliable, high-quality ammunition."

Orbital ATK's Small Caliber Systems Division of the Defense Systems Group vice-president and general manager Jim Nichols said:  “Orbital ATK is honoured to continue our longstanding support of the US Armed Forces and its allies by providing them with reliable, high-quality ammunition.

“Every member of the Orbital ATK team understands that our nation’s warfighters depend on us to provide the highest quality ammunition possible, and we do not take that responsibility lightly.”

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Since 2000, Orbital ATK has produced more than 17 billion rounds of small-calibre ammunition at Lake City to support US and allied warfighters worldwide.

Orbital ATK’s Defense Systems Group provides precision and strike weapons, advanced propulsion and hypersonics, missile components across air, sea and land-based systems, ammunition and related energetic products.

In February, Orbital ATK secured a $45m contract to complete development of the next-generation 120mm multi-purpose round for the Abrams Main Battle Tank.

This contract funds the final development and qualification for the US Army’s Advanced Multi-Purpose (AMP) round.

The deal calls for a 30-month development and qualification deliverable and also comprises three exercisable options for initial and full-rate production, which could take the total value of the contract to $119m.