BAE Systems Getting in Step with 21st Century Munitions at Kingsport Holston

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Researched by Industrial Info Resources (Sugar Land, Texas)--BAE Systems Incorporated (Rockville, Maryland), a private subsidiary of aerospace and defense contractor BAE Systems plc (LSE:BA) (Farnborough, England), is a civilian agent of the United States under contract to operate and maintain the Holston U.S. Army munitions manufacturing facility in Kingsport, Tennessee. The facility is one of only two in the continental U.S. capable of producing the tremendous quantities of HDX and RDX explosives necessary for certain military ordinance and explosive charges.

The site consists of two plants on two separate plots of land that are separated by about four miles: Plant A, which is a 5,900-acre site plot, and Plant B, which is on a 120-acre site plot. Traditionally, the two plants are considered to be the Holston Army Munitions Plant.

Portions of the munitions plant are more than 75 years old. As a consequence of its extreme age, much of the facility is in need of upgrading, refurbishment, remediation and/or replacement, although a substantial amount of work has already been done to the site and equipment over the last few years. Over the next three years, the military is planning to make investments of more than $100 million in capital projects, as part of an ongoing effort to bring the aging Holston munitions production site up to acceptable standards and extend its productive lifespan.

The rejuvenation projects scheduled to begin in the summer of 2010 will come in the form of adding equipment such as a scrubbing unit to reduce harmful emissions to the environment, and the relocation of an acid concentration unit from Site B to Site A to reduce transportation hazards and long-term costs. Other benefits of this move include the chance to replace piping and corroded equipment, and reduce potential regulatory liabilities in the future related to emissions and possible excursions.

Other projects being considered for the next few years are additions at the munitions production line at Plant B, which could have a cumulative cost of as much as $25 million, and Plant B utility upgrades that will cost about $50 million. It is possible that one or more of these size and type of projects may begin construction by the middle of 2011, if approved and funded in late 2010.

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