Skip to comments.Olin (Winchester) Awarded $14 Million Contract for Army Ammo
Posted on 03/04/2013 10:19:36 AM PST by EXCH54FE
The U.S. Army has awarded the Olin Corp. the contract for its upcoming small-caliber ammunition needs, an order that is expected to see production run from now until August 2014. Production will take place at Winchesters East Alton, Illinois, facility.
This may be one of the last production runs of this type at Winchesters Illinois plant, as they are currently in the process of moving their ammunition manufacturing facilities to Mississippi along with about 1,000 jobs. Winchester plans to be moved out of East Alton by 2016.
Olin CEO Joseph Rupp said, During 2012, Olin achieved $373 million of adjusted EBITDA, which is the highest in the history of the company. The record EBITDA was driven by strong results in the Winchester business As Olin enters 2013, we are optimistic that we can generate adjusted EBITDA in the range of $410 million to $440 million.
Winchester, like all ammunition manufacturers the world around, is seeing a massive increase in ammunition sales, a product of the current American firearm market. Overall, Winchesters earnings are up 27 percent over their 2011 numbers, with massive fourth quarter gains compared to the previous year.
(Excerpt) Read more at guns.com ...
> just thats its small caliber
.223 is a small caliber.
9mm Luger can be considered small, too.
If they’re ordering either of these, ammo availability will be impacted.
When I read the headline that was my first thought, that Obama would be rewarding his friends in Illinois. Just spreading the wealth!!!!!!!!!!!
They are moving out of state.
They should...I won’t support a state economy that is based on oppression, lies and cheating.
Winchester is expanding their plant in Oxford, Mississippi and is thriving there. The Mississippi Department of Economic Development has contacted Remington and Kimber also. Mississippi is gaining the ire of liberals everywhere with the legislatures' pro gun and pro free choice to work stance.
I really wish Olin would tell the US Gubmint to go get stuffed on this.
It’s a “production run.” That means that the ammo is being manufactured. That’s a good thing. It means more ammunition available in the civilian market sooner...that is, if the scalpers, purveyors of hysterical panic, don’t buy it all up to be stuck with it and busted in sensationalized news stories later on.
“Formerly successful business leader arrested with 100s of thousands of rounds of ammo—kept repeating, ‘end is near’”
Buy low, sell high. Get the stuff, when it’s cheaper and more readily available.
Oops. Buy low and keep it, that is.
Winchester doesn’t make the only brandof ammo. There are other manufacturers BUT, tieing up Winchester only puts a greater burden on the rest who make ammo. Right now there is such a big shortage or small ammo, this action will only lengthen the lead times to restock the shelves. I figure it will take the better part of 1 1/2 years.
I am betting that within 6 months if there is no major Federal legislation that bans the sale or production of ammunition, no more mass shootings, and no major decline the the US economic situation the ammunition bubble will start to soften and then pop. Hopefully by then, production will have been ramped up to such an extent that ammunition prices will be ridiculously low.
Nope. The overhang will still be there as the same people will be in charge and now we know their intentions. Anyone who stops buying thinking they will just go away is delusional.
Were you not around for the ammunition threads in 2009? I’m betting the same thing will happen. At this point I refuse to buy 5.56 ammunition for 99 cents a round.