REG - Chemring Group PLC - Contract Award

ChemringAnnouncement

10/06/2024 07:00

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RNS Number : 7011R  Chemring Group PLC  10 June 2024

FOR IMMEDIATE RELEASE
 
              10 JUNE 2024

 

CHEMRING GROUP PLC ("Chemring", the "Group" or the "Company")

 

LONG-TERM SUPPLY AGREEMENT AND CONTRACT AWARD

 

Chemring is pleased to announce that its Norwegian subsidiary, Chemring Nobel,
has signed a 15-year partnering agreement with Northrop Grumman for the supply
of HMX energetic material used in its missile programmes. This agreement,
which reflects the increasing desire of our customers to move to long-term
partnering agreements, builds on the two companies' long-standing relationship
and supports Northrop Grumman's efforts to expand its munitions manufacturing
production in response to growing customer demand.

 

As part of this agreement, Chemring also received a delivery order from
Northrop Grumman, valued at $83m, for the supply of HMX. Deliveries under this
order will commence in FY26 and will be made over the following three years,
with all work being carried out at Chemring Nobel's facility at Sӕtre,
Norway.

 

Michael Ord, Chief Executive of Chemring, commented:

 

"These awards, which illustrate the long-term and valued relationship that we
enjoy with Northrop Grumman, support our decision to invest in increasing the
capacity of our three energetics businesses over the medium-term, and
reinforces Chemring's position as a key supplier to NATO."

 

 

For further information:

Rupert Pittman           Group Director of Corporate Affairs,
         01794 463401

                                      Chemring Group
PLC

 

James McFarlane        MHP Group
                                07584 142665

Ollie
Hoare
07817 458804

 

Cautionary statement

 

This announcement contains forward-looking statements that are based on
current expectations or beliefs, as well as assumptions about future events.
These forward-looking statements can be identified by the fact that they do
not relate only to historical or current facts. Forward-looking statements
often use words such as anticipate, target, expect, estimate, intend, plan,
goal, believe, will, may, should, would, could, is confident, or other words
of similar meaning. Undue reliance should not be placed on any such statements
because they speak only as at the date of this document and, by their very
nature, they are subject to known and unknown risks and uncertainties and can
be affected by other factors that could cause actual results, and Chemring's
plans and objectives, to differ materially from those expressed or implied in
the forward-looking statements. There are a number of factors which could
cause actual results to differ materially from those expressed or implied in
forward-looking statements. Among the factors that could cause actual results
to differ materially from those described in the forward-looking statements
are: increased competition, the loss of or damage to one or more key customer
relationships, changes to customer ordering patterns, delays in obtaining
customer approvals for engineering or price level changes, the failure of one
or more key suppliers, the outcome of business or industry restructuring, the
outcome of any litigation, changes in economic conditions, currency
fluctuations, changes in interest and tax rates, changes in raw material or
energy market prices, changes in laws, regulations or regulatory policies,
developments in legal or public policy doctrines, technological developments,
the failure to retain key management, or the key timing and success of future
acquisition opportunities or major investment projects. Chemring undertakes no
obligation to revise or update any forward-looking statement contained within
this announcement, regardless of whether those statements are affected as a
result of new information, future events or otherwise, save as required by law
and regulations.

 

Notes to editors

 

·   Chemring is a FTSE250 global business that specialises in the
manufacture of high technology products and the provision of services to the
aerospace, defence and security markets

·   Employing approximately 2,600 people worldwide, and with production
facilities in four countries, Chemring meets the needs of customers in more
than fifty countries

·   Chemring is organised under two strategic product segments: Sensors
& Information and Countermeasures & Energetics

·   Chemring has a diverse portfolio of products that deliver high
reliability solutions to protect people, platforms, missions and information
against constantly changing threats

·   Operating in niche markets and with strong investment in research and
development ("R&D"), Chemring has the agility to rapidly react to urgent
customer needs

 

www.chemring.com. (http://chemring.com)

 

 

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