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.