Monday, July 12, 2010

Future of Alcotan-100 Hangs on Spanish Army Procurement

The initial serial production run of the Alcotan-100 for Spanish Army procurement reportedly ended in 2007. To date, the Spanish Army is apparently the only customer for this weapon system.

The Alcotan-100 remains within the high end of the market, given its unit price and level of incorporated technology. Despite its technical merits and the steadily improving reputation of Instalaza, the Aloctan-100 faces an already inundated international market and a domestic market limited in size.

Ongoing combat operations in Afghanistan and Iraq highlight the infantryman's increasing need for lightweight, shoulder-fired weapons that are effective against a variety of targets. The Alcotan-100 and its associated line of munitions should be particularly well suited to fill this need. Yet, we have not been able to confirm whether Spanish troops have even employed the Alcotan-100 in combat.

Without a proven combat record to promote in today's glutted international market, the Alcotan-100 remains at a distinct marketing disadvantage. Indeed, we have no evidence that the Alcotan-100 has scored any export sales to date.

Regardless of the potential for export orders, production at a moderate level for possible Spanish Army follow-on orders may resume this year. However, without a proven combat record, the Alcotan-100 may be unable to realize its sales potential on the international market.

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