Contract Award

RNS Number : 6525I

Chemring Group PLC

21 November 2008

 



FOR IMMEDIATE RELEASE                                                                                       21 NOVEMBER 2008

CHEMRING GROUP PLC

CHEMRING AUSTRALIA AWARDED A$160 MILLION CONTRACT

Chemring Group PLC ('Chemring' or 'the Group') is pleased to announce that its Australian subsidiary, Chemring Australia Pty Ltd ('Chemring Australia'), based in Victoria, Australia, has been awarded a long-term contract for the supply of countermeasures and pyrotechnics to the Commonwealth of Australia. The contract is worth A$160 million (£68 million) over an initial ten year period. 

As part of the arrangement, Chemring Australia will invest A$18 million (£7.6 million) in the establishment of a new, start-of-the-art manufacturing facility near Melbourne, as well as creating a research and development centre for the design of future products. Construction of the new facility will commence shortly and is expected to be completed in 2010. Forty new jobs will be created initially at Chemring Australia as a result of this investment.

The new manufacturing capability will also enable Chemring Australia to bid for the second-source supply of countermeasures for the Joint Strike Fighter, and the additional production capacity will be utilised in Chemring's global supply chain to satisfy export flare requirements.     

Dr David Price, Chief Executive of Chemring, commented: 'This contract establishes Chemring as the principal supplier of countermeasures and pyrotechnics to the Australian armed forces. The new state-of-the-art manufacturing facility will allow Chemring Australia to meet Australian operational requirements and will provide additional manufacturing capacity to satisfy the increasing demands of our global export customers. With the award of this contract, the Group's order book now stands at a record £477 million, up 47% since October 2007.' 

For further information:

Dr David Price	Chief Executive, Chemring Group PLC	01489 881880
Paul Rayner	Finance Director, Chemring Group PLC	01489 881880
Rupert Pittman	Cardew Group	020 7930 0777

 

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