Army Selects Cytec Thermoplastic Prepreg
WEST PATERSON, N.J. -- Cytec Industries Inc. (NYSE:CYT) confirmed that its Advanced Thermoplastic Composite has been selected as the material of choice by Alliant Techsystems (NYSE:ATK) and the U.S. Army Tank-Automotive and Armaments Command (TACOM), for use in manufacturing the Army's next generation 120mm armor-piercing tank ammunition round, the M829E3. The selection was presented to Cytec Fiberite Inc., a wholly owned subsidiary of Cytec Industries Inc. If exercised, options for low-rate production and two subsequent production orders could bring the value of the program to $18 million through 2004. Follow-on production to meet U.S. inventory requirements could result in $24 million of additional sales, resulting in $42 million total sales over the life of the program.
The M829E3 will replace the M829A1 and M829A2 rounds. The M829E3 was co-developed by Alliant Techsystems and the Army in the late 1980s. Widely regarded as the most effective tank-fired anti-armor weapon in the world, the round was nicknamed "the silver bullet" by Army tank gunners because of its effectiveness during Operation Desert Storm.
Cytec Fiberite's material, known as the APC line of prepreg, is a carbon fiber reinforced advanced thermoplastic resin system. It was chosen by Alliant and the Army for its unique high temperature and toughness properties and ease of processing.
Winning this program reinforces Cytec Fiberite's commitment to further extend its product offerings outside of the commercial aerospace market.
Cytec Fiberite is a leading worldwide supplier of adhesives and advanced composite materials for commercial and military aerospace and industrial applications. Cytec Fiberite's materials is qualified to most major commercial and military airframe programs in the western world and are well positioned to support the structural materials industry.
Cytec Industries Inc. is a vertically integrated, specialty chemicals and materials company that focuses on value-added specialty products. The company develops, manufactures and markets water and industrial process chemicals, performance products, specialty materials and building block chemicals to serve a broad group of end users, including the aerospace, plastic, coatings, mining, paper and water treatment and automotive industries.
Forward-Looking and Cautionary Statements
Except for the historical information and discussions contained herein, statements contained in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Achieving the results described in these statements involves a number of risks, uncertainties and other factors that could cause actual results to differ materially, as discussed in Cytec's filing with the Securities and Exchange Commission.