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Updated Thursday, October 9, 2008 10:17 am TWN, Reuters

BAE unit in US$30 million settlement over body armor

WASHINGTON -- The Armor Holdings Products unit of BAE Systems has agreed to pay US$30 million to resolve charges that it knowingly made and sold defective bullet-proof vests used by U.S. police and emergency workers, the Justice Department said on Tuesday.

The department had charged that Armor Holdings made and sold Zylon vests despite having information that the materials degraded quickly and were unsuitable for ballistics use.

The settlement is part of a larger probe into the use of Zylon materials in body armor. The United States in June sued Zylon’s maker, Honeywell, for sales of its Zylon product Z Shield to Armor Holdings.

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