Allen-Vanguard signs another $10-million contract

OTTAWA — Allen-Vanguard Corp. receives $10 million in new business for the second time in a week, but the defence products firm is hinting that there may Allen-Vanguard-logoNEW150X24.JPGbe lean times ahead. Despite a recent order from the US military for $10.3 million in bomb-jammer training services and a subsequent deal for explosive ordnance disposal (EOD) equipment from the same customer, as well as a further $4 million in orders from Brazil and eastern European customers, the company is suggesting it is in need of new customers. Chief executive David Luxton has indicated that the unfavourable economy and increased shop-at-home practices by main customer the US Department of Defense has harmed one of its bomb-jamming equipment products and forced the company to look for new business elsewhere. “Very recently we have seen some downside in the US military jammer market, with the Department of Defense clearly favouring large, established domestic suppliers, which is causing us to re-evaluate our strategy there regarding Chameleon jammers,” states Mr. Luxton. However, as one door is closing, the company is finding a wider opening for ordnance disposal gear as international conflicts scale down. “We are seeing a pronounced increase in activity for EOD equipment requirements, driven by a combination of heightened IED (improvised explosive device) threats in many countries and by equipment attrition in theatres of conflict and stockpiling of leave-behind equipment, as U.S. troops draw down in Iraq,” says Mr. Luxton.

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