The Canadian government signed a license agreement with Rheinmetall and General Dynamics [GD] to produce Omnitrap decoy ammunition for the Canadian Navy for 30 years, Rheinmetall said Thursday.
The agreement was inked at the Canadian Association of Defense and Security Industries (CADSI) CANSEC trade show in May and is valued in the mid-range tens of millions of dollars over the course of a 30-year lifetime. The contract will encompass the supply of core components by Rheinmetall for the decoy ammunition. The company will provide technical assistance to set up an assembly line at GD’s facility in Repentigny, Québec, Canada where final assembly will occur.
Earlier, Canada ordered 2,450 Omnitrap decoy rounds from the companies and in the second quarter of 2016 Rheinmetall booked an order of the rounds worth $2.8 million.
“The newly signed agreement will continue this supply relationship as well as the support that both companies provide the Canadian government and PSPC (Public Service Procurement Canada) for the next 30 years,” Rheinmetall said in a statement.