Chemring Group PLC, through its Norwegian subsidiary Chemring Nobel, has entered into a 15-year partnering agreement with Northrop Grumman for the supply of HMX energetic material used in missile programs. The agreement, valued at $83 million, also includes a delivery order from Northrop Grumman. The deliveries are set to commence in FY26 and will be carried out at Chemring Nobel's facility in Sӕtre, Norway.
The agreement reflects the increasing trend of customers moving towards long-term partnering agreements and builds on the longstanding relationship between the two companies. It also supports Northrop Grumman's efforts to expand its munitions manufacturing production in response to growing customer demand. Michael Ord, Chief Executive of Chemring, emphasized the significance of the awards, stating that they illustrate the long-term and valued relationship with Northrop Grumman and reinforce Chemring's position as a key supplier to NATO.
Chemring is a FTSE250 global business specializing in the manufacture of high technology products and the provision of services to the aerospace, defense, and security markets. The company employs approximately 2,600 people worldwide and operates in more than fifty countries. It is organized under two strategic product segments: Sensors & Information and Countermeasures & Energetics, with a diverse portfolio of products that deliver high reliability solutions to protect people, platforms, missions, and information against constantly changing threats.
The announcement contains a cautionary statement, highlighting that it contains forward-looking statements based on current expectations, beliefs, and assumptions about future events. It also outlines the factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. Chemring undertakes no obligation to revise or update any forward-looking statement contained within the announcement, except as required by law and regulations.
Overall, the agreement and contract award with Northrop Grumman signify a significant milestone for Chemring, reinforcing its position as a key supplier and underlining its commitment to long-term partnerships and investments in increasing capacity.