MOD Signs Partnering Agreement with Austin Hayes
21st July 2010
Austin Hayes Limited, which has spent over 50 years specialising in recycling by refurbishing ammunition containers and munitions packaging, has signed a long term partnering agreement with the Ministry of Defence. The five year, £18.5 million contract, with options for a further five years, has the potential to be worth £40 million pounds over the next 10 years.
The partnering agreement builds on an existing contract and long-term relationship between Austin Hayes and the MOD and will see the company supply a range of over 50 refurbished munitions packaging components for use by munitions manufacturers supplying British troops on operations around the world and in training.
It is anticipated that up to half a million items will be recovered from the UK and abroad each year and refurbished to “as new” condition. This will enable the MOD to perpetuate the current saving, estimated at £20 million per year, funds that would otherwise have to be spent on procurement of new items. Nik Vjestica, Managing Director of the Yeadon, West Yorkshire based company, said:
“This is great news! This contract will provide a stable platform from which we can work with the MOD to develop ever-more cost effective solutions for the taxpayer. We are here today at the Royal Armouries to celebrate the contract award. From tomorrow onwards my team is focused on the challenges ahead. We will continue to work closely with the Defence General Munitions Project Team to provide an increasingly effective and efficient service. With them we will share the responsibility in developing future strategies which will benefit the tax payer by providing better value for money, benefit our environment by developing greener technologies and ultimately providing our serving troops with a better and improved product.”
Together with staff from the DGM PT, and the Defence Storage and Distribution Agency depot at Longtown , where the recovered munitions packaging is processed, Austin Hayes was recently praised by the MOD’s Chief of Defence Material for its contribution to the MOD’s Sustainable Procurement Strategy and was awarded a Commendation at a prestigious ceremony in London.
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