BAE Systems Land & Armaments BAE Systems Land & Armaments is a subsidiary of BAE Systems Inc . and is responsible for the design , development and production of combat vehicles , ammunition , artillery systems , naval guns and missile launchers . It is the largest such company in the world . It was created on June 24 , 2005 , following the completion of BAE Systems plc ' s acquisition of United Defense and its merger with BAE Systems Land Systems . The L & A group In 2007 BAE Systems acquired Armor Holdings adding to the size of Land & Armaments significantly . History . Until 2004 BAE Systems was a relatively small player in the land systems industry , however following the 2004 purchase of Alvis Vickers , the 2005 acquisition of United Defense and the acquisition of Armor Holdings in 2007 it is now the largest land systems defense contractor . BAE Systems was formed in 1999 by the merger of British Aerospace ( BAe ) and Marconi Electronic Systems ( MES ) . BAe ' s land systems business was RO Defence , a major manufacturer of explosives , ammunition and small arms . MES owned Vickers Shipbuilding and Engineering Ltd , manufacturer of the M777 howitzer . On June 4 , 2004 BAE Systems outbid General Dynamics for Alvis plc , the UK ' s principal land systems business . What had seemed a certain win for the US company was stopped by BAE Systems ' surprise move . It has been seen as an attempt to keep such a strong competitor at bay in BAE Systems ' " backyard . " Alvis and BAE RO Defence were merged as BAE Systems Land Systems . When Dick Olver was appointed Chairman of BAE Systems in July 2004 he ordered a review of the company ' s businesses which confirmed the attractiveness of the land systems sector . This shift in strategy was described as " remarkable " by the " Financial Times " . On March 7 , 2005 BAE Systems announced the $ 3 . 974 billion acquisition of United Defense Industries ( UDI ) . UDI , a major competitor to General Dynamics , was primarily a land systems manufacturer , boosting BAE Systems ' involvement in this sector and its sales in the important North American market . UDI manufactured combat vehicles , artillery systems , naval guns , missile launchers and precision guided munitions . BAE Systems Land and Armaments was formed in June 2005 in a reorganisation of BAE ' s businesses . Land and Armaments , headquartered in the United States as part of BAE Systems Inc , took control of BAE ' s existing land systems businesses . Land and Armaments has received regular contracts for the " reset " of Bradley armoured fighting vehicles . By August of the financial year 2006 BAE had received contracts totaling $ 477 . 9 million . In July 2009 BAE failed to win the $ 1 . 06 billion MRAP All Terrain Vehicle ( M - ATV ) contract which will see 2 , 244 vehicles produced for the US Marine Corps . In September 2009 BAE lost a larger contract , the first stage of a multibillion - dollar follow - on order for up to 23 , 000 trucks as part of the Family of Medium Tactical Vehicles programme . Despite a successful appeal forcing the US Army to reevaluate the bids , Oshkosh Corporation was confirmed as the winner of the £2 . 3 billion ( $ 3 . 7 billion ) contract in February 2010 . BAE announced a £592 million writedown of the former Armor Holdings business as a result . Organization . Global Tactical Systems . Global Tactical Systems ( GTS ) was formed from the merger of Mobility & Protection Systems ' Medium / Heavy Vehicle business ( formerly Armor Holdings ) and the Land Systems South Africa businesses . US Combat Systems . The former United Defense business , BAE ' s US Combat Systems produces fighting vehicle platforms and armaments . Global Combat Systems . Global Combat Systems ( GCS ) was formed on 1 February 2009 by the merger of BAE Systems ' Land Systems Weapons & Vehicles , Land Systems ( Munitions & Ordnance ) Ltd and BAE Systems AB in Sweden . It also has a 50 / 50 joint venture with Nexter ( formerly GIAT ) , CTA International , which is located in Bourges , France . GCS Munitions . History . Upon its creation on 2 January 1985 , Royal Ordnance plc owned the twelve Royal Ordnance Factories ( ROFs ) that remained open , plus the Waltham Abbey South site , RSAF Enfield and three Agency Factories . Several factors delayed the intended privatisation until 22 April 1987 , when British Aerospace purchased the company . In 1999 British Aerospace merged with Marconi Electronic Systems , the defence interests of GEC to form BAE Systems . In 2002 Heckler & Koch was sold to Heckler and Koch Beteiligungs GmbH . In 2004 BAE Systems acquired Alvis plc which was merged with the RO Defence business and ex - GEC plants at Barrow - in - Furness and Leicester to form BAE Systems Land Systems . RO Defence was renamed BAE Systems Land Systems ( Munitions and Ordnance ) . In 2005 BAE Systems acquired the US company United Defense Industries and merged it with the Land Systems business to create BAE Systems Land and Armaments . The former RO Defence business was renamed BAE Systems Land Systems Munitions . In February 2009 it was merged into GCS as Global Combat Systems Munitions . Products . GCS Munitions manufactures 4 . 6mm , 5 . 56mm and 7 . 62mm small arms ammunition , mortars , and land and sea artillery ammunition . It also produces explosives , guidance kits , propellants , demolition charges , initiators , pyrotechnics , and warheads for missiles , torpedoes and depth charges . These include the BROACH multi - stage warhead produced in partnership with Thales Missile Electronics and QinetiQ . GSC Weapons . Manufactures " intelligent ammunition , artillery systems , combat vehicle turrets , naval gun and air defence gun systems . " Examples include the M777 howitzer . GCS Vehicles . Global Combat Systems Vehicles produces and supports main battle tanks , infantry fighting vehicles , armoured engineer vehicles , armoured all - terrain vehicles and military bridging vehicles . Examples include the Challenger 2 main battle tank and the CV90 infantry fighting vehicle family . Security & Survivability . Security and Survivability ( S & S ) consists of 3 Functional Areas : Platform Survivability ( PS ) , Individual Protection Systems ( IPS ) and Advanced Materials . Platform Survivability Product lines include armored , crashworthy , and armored - crashworthy seating for aerospace products along with mineblast attenuating seats for vehicles . IPS produces individual small arms and fragmentation protection solutions , such as ESAPI and XSAPI armor , mostly for military customers . In July 2010 , it was announced that Security and Survivability will cease to exist on 1 January 2011 . The functional areas of S & S will be assigned to Global Tactical Systems ( GTS ) or the BAE Systems Products Group . Management . Bob Murphy was named president of BAE Systems Land & Armaments Operating Group in November 2009 after Linda Hudson was promoted to President and CEO of BAE Systems Inc . Tom Rabaut was named President of the newly created BAE Systems Land and Armaments , he was previously Chief Executive Officer ( CEO ) and President of United Defense since January 28 , 1994 . Rabaut retired on 1 January 2007 and was succeeded by Linda Hudson . Hudson has led General Dynamics Armament and Technical Products and held senior management positions at Lockheed Martin , Martin Marietta , Ford Aerospace , and Harris Corp .