Chemring Group PLC on Monday said it has won a 12 year contract with Diehl Defence GmbH & Co KG for the supply of MCX energetic materials.
The Hampshire, England-based company is a provider of technology products and services to the aerospace, defence and security markets.
Diehl Defence, a German weapon manufacturer, and Nammo AS, a Norwegian aerospace and defence company, set up an industrial working group in 2023 to supply the German government with 155 millimetre munitions for the German Armed Forces, and received their first delivery order in July 2024.
Chemring Nobel, the group’s Norwegian subsidiary, is the only qualified supplier of MCX material for Nammo’s munitions technology.
The contract has an initial purchase order value of €231 million and covers a five-year period beginning in late 2026.
The company also on Monday announced that Chemring Energetic Devices, the group’s US subsidiary, received a $106 million order to deliver ‘critical components’ for an undisclosed US missile programme. Deliveries will be made across a five-year period, beginning in 2026.
Chemring expects to report adjusted operating profit for the financial year that ended October 31 in line with company-compiled consensus expectations of £70.9 million. This would represent a 2.5% increase from underlying operating profit of £69.2 million last year.
Chief Executive Officer Michael Ord said: ‘These significant contract wins illustrate the deep long-term relationships that we have built with our customers. It is further evidence of the sustained and growing demand for our products and supports our investment decisions to increase the capacity of our three energetics businesses, and reinforces Chemring’s position as a key supplier to NATO.’
Shares in Chemring were up 1.5% at 361.50 pence each in London on Monday morning.
Copyright 2024 Alliance News Ltd. All Rights Reserved.
