SME Ordnance Sdn Bhd (SMEO) was formerly known as Syarikat Malaysia Explosive Sdn Bhd (MALEX). Its present name was changed on March 5, 1993, to better reflect its expanding business into the manufacturing of defence related products.

SMEO is the only licensed manufacturer of Ammunition in Malaysia and has been identified by the government as the agency responsible for the development of defence products in the country.

SMEO was incorporated in 1969 as a joint venture Company with equity participation between the Government of Malaysia, Dynamit Nobel of Germany, Oerlikon Machine Tools of Switzerland and two local partners namely Syarikat Permodalan Kebangsaan and Syarikat Jaya Raya Sdn Bhd. However, by 1974, the Government of Malaysia acquired all the shares.

It started off its operations initially as a manufacturer of Small Calibre ammunition and progressed to develop a range of pyrotechnic, large calibre ammunition and Engineering Plastics products. The Company’s expertise also lies in refurbishing a wide range of ammunition and strengthening its quality and research division in providing Non Destructive Testing (NDT) services.

As testament to its reputation as a reliable and quality driven defence manufacturer, SMEO was awarded with several internationally recognized accolades including 'the preferred supplier' of the guns and ammunition business of Royal Ordnance by British Aerospace (United Kingdom). SMEO has also been awarded with the MS ISO 9001:2000 Quality Management Systems - Requirements by the Standards and Industrial Research Institute of Malaysia (SIRIM).