Ceradyne Inc. said Monday that it inked a five-year pact worth up to $612 million to supply ceramic body armor to the Army.
The first order under the pact for the Costa Mesa-based company is worth $60 million. Ceradyne said it would start shipping armor under the deal this month to the Army’s Aberdeen Proving Ground in Maryland.
Ceradyne said it would use plants in Costa Mesa, Irvine and Lexington, Ky., to make the body armor.
There’s no guarantee that the Army will buy the full amount of armor under the contract. The $612 million value is the maximum that the Army could buy.
Shares of the company were up 6.5% to $52.69.
