Ultra Electronics awarded $7m US Navy contract

Ultra Electronics announced on Monday that its Ocean Systems business, based in Braintree, Massachusetts, has been awarded a contract valued at just over $6.6m from Lockheed Martin.

The FTSE 250 company said the deal was for the non-recurring engineering and production of the MK 48 Torpedo Array Nose Assembly as well as engineering services and spares.

Options to extend the contract for a further four years could increase the initial value to $27m.

Under this new contract, Ultra will provide fully integrated Array Nose Assemblies to increase the US Navy inventory of MK 48 torpedoes.

The MK 48 is used by all classes of US Navy submarines as their primary anti-submarine warfare and anti-surface warfare weapon, the board said, with potential for production orders from the Navy of more than 250 MK 48 torpedoes over the next five years.

“I am pleased that Ultra has been awarded this contract,” said chief executive Rakesh Sharma.

“It reinforces Ultra's Ocean Systems position as a leader in the Undersea Warfare environment through the provision of highly complex acoustic products and capabilities to both the US Navy and international customers.”