ST Engineering Wins $88 Million UK 40mm Grenade Contract

ST Engineering Advanced Material Engineering will supply the British military with 40mm grenades under a five-year contract valued at $87.8 million (£65.84 million), according to a contract award notice published by Defence Equipment and Support.

The Singapore-based manufacturer beat two competitors to secure the deal, which covers nine variants of 40mm high and low velocity grenades. The award decision was made on 20 March 2026, and the contract was set to be signed on 7 July 2026 and will run through July 2031. The Ministry of Defence holds an option to purchase additional munitions during the five-year period.

Defence Equipment and Support, which managed UK defense procurements, received three tenders in the final assessment stage. ST Engineering's bid defeated submissions from NIOA Nominees and Edgar Brothers.

GTDS Europe, which serves as the authorized representative of ST Engineering, were initially listed as the awardee before the notice was amended to list ST Engineering - the prime supplier. ST Engineering produce a wide range of high and low velocity 40mm grenades, these include 40mm 40mm Air Bursting Munition Systems (ABMS), Airburst Dual Purpose Ammunition, High Velocity Counter-Unmanned Aerial System, 40mm High Explosive / High Explosive Dual Purpose and a range of training ammunitions including target practice marker grenades and tracer grenades. From the award notice its unclear which grenades the UK has procured but of the nine variants there is likely a mix of high explosive and training grenades for both high and low velocity launchers.

The grenades to be procured will be used in the British armed forces' 40mm low velocity grenade launchers (such as the L123 Underslung Grenade Launcher - HK AG36) and HK-manufactured GMG high velocity automatic grenade launchers (designated the L134A1 in UK service).