investments_cluster_munitions

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“The BLU-108 submunitions released from the Sensor Fuzed Weapon (SFW) are propelled by an ATK Missions Systems designed and produced rocket motor. The SFW was designed specifically to provide upward axial thrust and rotational torque to the BLU-108 submunition, releasing the skeet warheads at the end of motor burn. The upward thrust and rotational torque is achieved by utilizing dual tangential nozzles in the ATK rocket motor. The SFW is the first smart air-to-surface munition to enter production for the U.S. Air Force. The SFW, a 1,000-pound class weapon, contains ten BLU-108 submunitions, each with four smart Skeet warheads, for a total of 40 warheads. Designed for stand-off deployment from a wide variety of aircraft, SFW’s versatility and superior lethality make it a weapon of choice for anti-armor, destruction of enemy air defense, and many other combat missions.”25 As a supplier for an important component of the SFW, ATK has been involved in several SFW contracts concluded by Textron Defense Systems with the US Air Force. In March 2006, Textron Systems announced that it had been awarded a US$108 million contract by the US Air Force for its Fiscal Year 2006 procurement of the SFW. The three-year contract was part of an on-going Long Term Pricing Agreement (LTPA). Overall, Textron Systems would deliver approximately 6,500 SFWs to the US Air Force by the end of 2013.26 The most recent US Air Force contract with Textron we found on SFW deliveries is a “$92,938,707 firm-fixedprice contract modification” dated 31 January 2007 which “provides for 291 Sensor Fuzed Weapons (SFW) Full Rate Production, Lot 12 option exercise”. 27 This same contract was modified in February 2009 for an additional $9,527,490 of SFWs. According to the US Department of Defense “This action will provide 30 additional Sensor Fuzed Weapons, Full Rate Production Lot 12. At this time, the entire amount has been obligated. Eglin Air Force Base is the contracting activity.”28 In its annual report for the fiscal year ended March 2010, Alliant Techsystems confirms that it was recently involved in these SFW supplies to the US Air Force, “ATK’s sole-source contracts accounted for 58% of U.S. Government sales in fiscal 2010 and include the following programs: (…) Sensor Fuzed Weapon propulsion systems, (…).”29 Since July 2004, Textron Defense Systems also sells SFWs to other countries, mostly under US Air Force Foreign Ministry Sales (FMS) contracts. As an important component supplier, ATK very probably was involved in these contracts. For more details, see paragraph 1.1.8. Alliant Techsystems is included in the red flag list because, despite removing information about its rocket motor for the SFW from its website, there is evidence that the company has been manufacturing this key component for SFW cluster munitions after May 2008. The company confirmed this when its latest annual report referred to the SFW propulsion system as one of its sole-sourced contracts with the US government. Alliant Techsystems has not publicly stated that it will end its involvement within the coming 12 months.

1.1.2

Hanwha (South Korea)

Hanwha Corporation, the former Korea Explosives Corporation, is a world business leader in industrial explosives production, and in construction, trade, machinery, and pharmaceuticals.30 The South Korean company was officially designated a defence contractor in 1974. Since then, it has specialised in munitions, whose production process is under strict government control and for which the South Korean Government is its sole customer.31 Hanwha produces 130 mm Multiple Launch Rocket System (MLRS) and 2.75” Multi-purpose submunitions (MPSM). The company confirmed its manufacture of these types of cluster munitions in a written answer to the Norwegian Government Pension Fund in 2007.32 In February 2010, Hanwha Corporation still advertised the 130 mm MLRS and the 2.75” MPSM on its website. It described the 130 mm MLRS as a rocket launcher that could “launch multiple rockets into concentrated

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