Chemring Group subsidiary Kilgore Flares Co. has received a $24.9 million U.S. Army contract for infrared decoy flares, the company announced this week.

The contract entails the manufacturing and delivery of M206, MJU-7A/B and MJU-10/B flares, the company said.

Infrared counter-measure flares are used by the military to divert enemy heat-seeking missiles away from aircraft. Ultra-fine magnesium powder -- combined with other materials -- is used in the flares for high-temperature burning that mimics the heat of aircraft's engine.

The flares help protect helicopters, fighter jets and transport aircraft from Man Portable Air Defense systems.

Work will be performed at Kilgore's Tennessee facility.

Kilgore Flares and the ESM Group agreed in March to settle a case involving allegations of selling defective counter-measure flares to the Army in violation of the False Claims Act.

The two agreed to pay a total $8 million to settle the matter, with ESM paying for allegedly avoiding the payment of customs duties on Chinese-made magnesium powder used in the flares.

Kilgore's contracts with the Army prohibited the use of magnesium powder from foreign countries, except Canada.

The United States alleged that from July 2003 through May 2005, ESM knowingly misrepresented the content of magnesium powder imported from China to avoid paying anti-dumping customs duties -- at that time, 305 percent.

The government also alleged that from March 2005 through August 2006, Kilgore used the illegally imported Chinese magnesium powder it bought from ESM in the countermeasure flares it sold to the U.S. Army.