Financial News
US approves Poland's bid to buy $10 billion in HIMARS, ammunition
The U.S. has granted approval to Poland's potential purchase of an estimated $10 billion worth of High Mobility Artillery Rocket Systems (HIMARS), which have gained broader public recognition following their provision to Ukraine last summer and effectiveness in carrying out precision strikes against Russian forces in the months since.
The State Department on Tuesday granted a favorable determination for the arms sale, of which the Defense Security Cooperation Agency (DSCA) published and notified Congress as required by law. While lawmakers could technically hold a vote to block the sale in the next two weeks, it appears unlikely to occur given Poland's status as a key NATO ally.
Poland has asked to buy 18 M142 HIMARS launchers along with 468 launcher loader module kits, 45 M57 Army Tactical Missile Systems (ATACMS), and more than 1,500 Guided Multiple Launch Rocket Systems (GMLRS) – which includes three sub-variants of the rocket munition. The sale also includes associated sensors, training materials and relevant technical assistance from the U.S. government and contractors.
US COULD QUICKLY RUN OUT OF MUNITIONS IN CONFLICT WITH CHINA, DEFENSE INDUSTRY UNPREPARED: REPORT
The HIMARS is made by Lockheed Martin and has been in service with the U.S. since 2010 with the Army and Marine Corps. Aside from Ukraine, several foreign militaries currently field the HIMARS, including Jordan, Romania, Singapore and United Arab Emirates. Other countries that have received approval to buy HIMARS in recent years include Australia, Estonia, Latvia, Lithuania and Taiwan.
The U.S. has provided at least 20 HIMARS to Ukraine since June 2022, with a further 18 expected to be delivered in the future. Initially, the Biden administration balked at providing the systems to Ukraine following Russia's invasion in February 2022, partly due to a concern that Russia could use the provision of the advanced artillery platform as a pretext to escalate the war.
Since its arrival in Ukraine, the mobility and firepower of the precision rocket artillery system helped stem Russia's advance and set the stage for Ukraine's counteroffensive last summer and fall, particularly with strikes on Russian supply depots.
US ARMS SALES JUMP BY 50% IN 2022 AMID SECURITY CONCERNS OVER WAR IN UKRAINE, CHINA AGGRESSION
Regarding the HIMARS sale to Poland, the DSCA announcement said it will "support the foreign policy goals and national security objectives of the United States by improving the security of a NATO Ally that is a force for political stability and economic progress in Europe."
"The proposed sale will improve Poland’s military goals of updating capability while further enhancing interoperability with the United States and other allies," the announcement continued. "Poland intends to use these defense articles and services to modernize its armed forces and expand its capability to strengthen its homeland defense and deter regional threats. Poland will have no difficulty absorbing this equipment into its armed forces."
DSCA added, "There will be no adverse impact on U.S. defense readiness as a result of this proposed sale."
OMNIBUS CONTAINS $11.9B FOR PENTAGON TO REPLENISH WEAPON SYSTEMS SENT TO UKRAINE
Lockheed Martin is planning to expand HIMARS production to 96 systems annually after beginning 2022 at 48 systems a year and had reached a rate of about 60 per year as of the end of last year. The company was awarded a $431 million contract in December for full-rate production to support the needs of the U.S. military and overseas allies and partners.
A recent report by the Center for Strategic and International Studies (CSIS) warned about the status of the U.S. military's stockpiles of key munitions and the defense industrial base's capacity to quickly ramp up production in the event of a potential war with China. CSIS warned that the U.S. "would likely run out of some munitions – such as long-range precision-guided munitions – in less than one week in a Taiwan Strait conflict."
GET FOX BUSINESS ON THE GO BY CLICKING HERE
The CSIS report found that the U.S. military's inventories of HIMARS inventories were "medium" – and recommended that the Pentagon consider making commitments for multiyear acquisitions to encourage investments in surge capabilities. It also suggested exploring the co-production of HIMARS with Poland as a means of "ally-shoring" production to boost capacity and support an economic partnership.
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.