By JASON BRUCE, APGENRAH MOHAMED, ANDERSON ALFRED and BRENT E. KLEINERKAB article PSS, a maker of precision-guided munitions, has announced plans to buy about 20% of the company’s production.
The move will add to the pressure on the embattled company as the company continues to deal with a variety of health and safety issues.
PSS has been struggling to find a sustainable production stream in the wake of the Fukushima nuclear disaster, as it has faced regulatory and legal challenges to its business model.
In the past year, the company has struggled to meet production targets for some weapons systems it had designed for the U.S. military.
A $3 billion loan guarantee from the U,S.
Treasury Department was announced in December to help it fund its restructuring.
A series of regulatory filings last month also indicated that PSS was under scrutiny from the government’s inspector general over its safety record.
The company has not provided the IG’s office with any documentation about its safety program, a spokesperson for the watchdog said.
“The IG has requested the company provide additional information to verify that it has an effective safety program,” said the spokesperson, who declined to be identified because the investigation is ongoing.
Pss said the new purchase would bolster its manufacturing capacity, adding that the purchase will be made over the next two years.
It will be the company “the largest single-site acquisition by PSS since the company was founded in 2008,” the spokesperson said.
Pressed on whether Pss was likely to be forced to stop producing weapons, the spokesperson did not answer directly but said, “Pss has an excellent track record of operating with confidence and stability.”
Pss has said that the acquisition is part of a restructuring plan that will enable the company to focus on other areas of its business, such as its pharmaceutical business.
PSC, the U to S company that makes the PSS precision-gravitated munitions, said it would continue to develop new precision munitions and plans to use the new acquisition to expand its product line, including weapons that use a more energy-efficient propellant and munitions that can withstand high-pressure conditions.
It is also developing an unmanned air vehicle, which is slated to begin flying in 2018.