[Photo provided by LIG Nex1]
LIG Nex1, a South Korean aerospace and defense company, announced on Monday it has signed a supply contract connected to the Korean military counter-battery radar system II program.
The contract signed with Defense Acquisition Program Administration is valued at 181 billion won ($163.1 million), which represents 10.3 percent of the company’s revenue last year.
Full rate production should be met by 2020.
A counter-battery radar system for the purpose of enemy field artillery location and acquisition plays a key role as the core element of a brigade or division level counter-battery system.
Prototypes show 30-40 percent better performance and 95 percent in component localization versus imported ARTHUR-K
LIG Nex1 shares gained 2.55 percent and closed at 34,150 won in Seoul trading on Monday.
The company expects large-scale exports will follow after full-rate production as overseas buyers in Europe and the Middle East show a keen interest in the better price and performance of the weaponry.
Meanwhile, LIG Nex1 continued an increase in operating profit in the second quarter after a turnaround in the first quarter. The company posted 13.1 billion won in operating profit over sales of 363.3 billion won in the Apr.-Jun. period.
Sales were down 17.2 percent from a year ago with operating profit down 47.3 percent. But from the previous quarter, operating profit increased 52 percent in the second quarter.
By Moon Ji-woong and Minu Kim
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]