Edina’s ATK expects sales surge from Afghanistan buildup

Photo: Army.mil via Flickr

While President Obama’s plan to send 30,000 more troops to Afghanistan has been met with mixed reactions, one local company sees an upside to troop escalation. Edina-based ATK, formerly Alliant TechSystems, expects to see demand for bulletproof vests go up — and, after U.S. troops leave, a surge in ammunition sales to the Afghan army.

On Thursday, ATK’s interim CEO John Shroyer told a Credit Suisse conference that Obama’s strategy should boost demand for vests and other accessories, with more sales expected after U.S. forces leave. “We’re in a very good pole position as they get pulled out,” Shroyer said. “This Afghan weapons and ammo business, I see, as a huge opportunity for the company as that shift takes place.”

The Wall Street Journal lists ATK among potential “beneficiaries” of expected military spending spikes, and reports that the company has a contract to provide ammunition to the Afghan army.

Washington Technology ranked ATK on its list of the top 100 U.S. government contractors at number 37, with $581,514,667 in contracts in 2009.

Since the invasion of Afghanistan in 2001, the U.S. has spent around $227 billion, according to Congressional Research Service. Adding 30,000 troops could cost around $20 billion a year, says Kenneth Mayer, professor in the Department of Political Science at University of Wisconsin, Madison.