Defence giant BAE has secured a five year contract to supply the U.S. army with equipment in a deal valued at $780 million.

The contract will see the arms manufacturer supply newly developed explosives from its Tennessee plant to the U.S. military, as a high stability replacement for TNT, which is being phasing out within U.S. forces.

The contract comes as welcome news to the company’s shareholders, at a time when BAE is suffering from reduced contracts being put for tender, as the world’s largest defence spender makes significant cuts to defence programs, in light of global recession and the changing theatre of warfare.

Erin Moseley, president of BAE Systems’ Support Solutions sector, said of the new explosives: “Once fully fielded, it will help to save lives on and off the battlefield.”

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