21 Nov 2008
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,
state-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 |