Arch Chemicals Gets Propellant Deal
Thursday March 31, 6:54 pm ET
Arch Chemicals Wins Back Government Hydrazine Propellant Deal After Year-Long Contest
NORWALK, Conn. (AP) -- Arch Chemicals Inc. said Thursday it received a 20-year, $149 million contract to supply, store and distribute hydrazine propellants for the Defense Department, a deal the company was told last year would go to another firm.
The government uses hydrazine propellants to launch GPS satellites and for space shuttles and F-16 fighter jets.
The 10-year deal will begin in 2007 and includes two five-year renewal options. Arch plans to use its hydrazine production plant in Lake Charles, La., to provide the products and services.
Arch, the government's sole supplier of hydrazine propellants for more than 50 years, said the government originally awarded the contract to a competing firm when its previous contract expired a year ago. Arch protested the award and submitted a new bid, which was accepted on Tuesday.
"This new long-term award solidifies our position as a major strategic supplier to the Department of Defense, NASA and other agencies that rely upon our propellants," said Chairman, President and Chief Executive Officer Michael E. Campbell. The company said the deal will not affect 2005 financial results.
Arch Chemical shares fell 24 cents to close earlier at $28.47 on the New York Stock Exchange.
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