The U.S. subsidiary of Europe's Nammo Group is to manufacture M72 Light Assault Weapons under a four-year contract from the Department of Defense.

Nammo Talley said the initial order already received under the indefinite-delivery/indefinite quantity award is worth more than $25 million. The total value -- contingent upon the total quantity of options exercised -- is worth about $63 million.

"This is another important milestone for the battle-proven M72 LAW," said Chad Parkhill, a Nammo Talley product line director. "It also sustains the vital ammunition industrial supply base in a period of decreasing volume.

"We're ready and proud to provide U.S. and allied forces with what we believe are the lightest, most capable and cost-effective shoulder-fired weapons in the world."

Nammo Talley said its production under the award will cover anti-armor and anti-structure variants of the weapon as well as sub-caliber training systems and other support services.

The M72 LAW was first brought into service by the United States in 1963. It weighs 5.5 pounds and, when loaded, is 34.67 inches long. The weapon fires a 66mm rocket and has an effective distance of about 660 feet.

Nammo Talley is owned by Norway's Nammo Group and Finland's Patria. It says it is the only manufacturer of man-portable, unguided, shoulder-launched munitions in the United States.

Rounds for the weapon will be made at the Nammo Talley headquarters in Mesa, Ariz. The launchers will be manufactured at a company facility in Pennsylvania.