News: Electro Optic Systems wins $9.3M contract from Hyundai-Wia

Electro Optic Systems (ASX:EOS) has been awarded a $9.3 million contract to provide advanced military sub-systems and components to South Korean defence company Hyundai-Wia.

EOS will deliver surveillance and force protection parts and subsystems over 12 months from the third quarter of 2015.

Hyundai-Wia, a subsidiary of the Hyundai Motor Group, will also produce some EOS designs under license for this requirement.

This follows on the two companies reaching a teaming agreement in July 2012 to combine their r respective technologies and production capabilities to meet high performance and extreme environmental requirements in very demanding applications for military surveillance, electronics and force protection products.

It allocates work share for each company in the event that the team is successful in achieving contract awards in these fields.

In late 2012 Hyundai-Wia was selected by one customer for long term trials involving more than two years of operational deployment of EOS-Hyundai-Wia equipment for surveillance and force protection.

The trials concluded in the first quarter of 2015 and the customer has recently awarded a contract for the requirement to Hyundai-Wia, resulting in the award to EOS.

The current awards relate to an initial phase of acquisition for one program.

This program, if funded in subsequent budget appropriations by the customer, would extend over 4-5 years and require 5 times more equipment than is presently under order.

Larger programs requiring similar equipment have already been initiated by the same customer, and Hyundai-Wia and EOS now plan to compete for those requirements as well as further opportunities in the international market.