The US Defense Logistics Agency (DLA) has extended a warehousing and distribution contract for Kuwait's Agility by six months, the firm said in a statement on Monday.

"(DLA) has awarded them (Agility) six months extension starting September 2010 for the warehouse and distribution service contract...with a value of around USD 25 million," Agility said in a statement to the Dubai bourse.

Agility, formerly Public Warehousing Co, KSC (PWC) was dropped from supplying food to the US Army in Iraq, Kuwait and Jordan after being accused of overcharging the military. The company held contracts worth $8.5 billion spanning more than three years.

The US government has replaced Agility as the main supplier to its troops in Kuwait, Iraq and Jordan with Dubai-based Anham FZCO LLC, awarding it a $2.2 billion contract in April.

The Kuwaiti logistics firm said in April that it would continue to supply the US military for six months "to guarantee continuity of supplies" to the army before Anham takes over.   

Opec-member Kuwait has become a major logistics base for the American military since the US invasion of Iraq in 2003. -Reuters