Defense group Chemring wins £278m new order from Germany and US

Shares in London-listed Chemring rose on Monday after the defense group announced new supply orders worth £278 million to the German and US militaries.

Chemring told shareholders that its Norwegian subsidiary had signed an agreement for the supply of ‘energetic material’ used in 155 mm ammunition to be used by the German Armed Forces and their allies.

The initial purchase order, valued at €231 million (£194 million), will see Chemring Nobel provide deliveries to Diehl Defense over a five-year period from late 2026, as part of a collaboration with Norwegian-Finnish defense group Nammo AS.

Chemring has a broad range of defense products, from aerial engineering to reconnaissance technology and cyber threat security products.

Separately, Chemring said its US subsidiary had received an order worth $106m (£82m) for the delivery of critical components for use in an ‘undisclosed US missile programme’.

The five-year agreement will begin in 2026.

Chemring shares It rose 1.7 per cent to 362p in early trading. They have increased by more than 80 percent in the last five years due to increasing demand.

Chemring has a broad range of defense products, from aerial engineering to reconnaissance technology and cyber threat security products.

The group told shareholders last month that full-year profits would be in line with expectations of between £70.8 million and £73.6 million after receiving ‘a number of significant orders’ in the final quarter.

Chemring aims to generate annual revenues of £1bn as governments around the world increase defense spending amid a growing number of geopolitical crises.

It is making intensive investments to increase the capacity to meet demand.

Chemring boss Michael Ord said: ‘These significant contract wins demonstrate the deep long-term relationships we have built with our customers.

‘This is further evidence of the continued and growing demand for our products and supports our investment decisions to increase the capacity of our three energy businesses and strengthens Chemring’s position as a key supplier to NATO.’

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