In a significant move to strengthen global supply chains in the defence sector, Colt’s Manufacturing Company LLC (Colt), based in Connecticut, USA, and SME Ordnance Sdn Bhd (SMEO), a subsidiary company of National Aerospace and Defence Industries Sdn. Bhd, inked a Memorandum of Understanding (MOU) to jointly develop and supply small arms ammunition.
This strategic partnership, forged at DSA Malaysia 2024 and in line with the event’s ethos of promoting international collaboration, aims to explore and capitalise on opportunities that will enhance the production and distribution of 5.56mm M193 calibre ammunition.
Under the MOU, SMEO will produce and deliver six million rounds of ammunition annually to Colt over a three-year period. This collaboration, facilitated by the shared objectives and capabilities of both firms, sets a framework for a potential long-term partnership aimed at enhancing supply chain resilience and reliability.
“This will not only enhance our supply chain capabilities but also aligns with our strategic goal to ensure reliable and continuous supply to our global customers,” stated Jens Heider, VP of Global MIL/LE Sales at Colt. “We are excited to leverage SMEO’s manufacturing prowess to meet the growing international demand for high-quality ammunition.”
The MOU also emphasises the non-binding nature of the current understanding, serving as a precursor to more detailed agreements expected to be negotiated in the future. Both parties have agreed to operate under a non-disclosure agreement, ensuring the confidentiality and integrity of their strategic intents. Furthermore, the collaboration is structured to respect and comply with all relevant international laws and regulations, including U.S. export controls and Malaysian legal frameworks.
Colt’s Manufacturing Company, LLC (CMC, formerly Colt’s Patent Firearms Manufacturing Company) is an American firearms manufacturer, founded in 1855 by Samuel Colt and now a subsidiary of Czech holding company Colt CZ Group. They produce a wide range of firearms, including pistols, rifles, and submachine guns, known for their quality and reliability.
SMEO is a subsidiary company of National Aerospace and Defence Industries Sdn. Bhd. Located in Batu Arang, Selangor and was incorporated in 1969. In 1993, SMEO was approved by Royal Ordnance Division, British Aerospace (BAe) as the preferred suppliers of weapons and ammunition. The Standards and Industrial Research Institute of Malaysia (SIRIM) bestowed & registered SMEO’s quality system as compliant with MS ISO 9002:1991 systems on 7 December 1993.
