Velocity Composites plc, the leading supplier of advanced composite material kits, providing engineering value-solutions for the global aerospace industry, is delighted to announce that it has secured an extension to a Long Term Agreement (the “Agreement”) with an existing UK customer (the “Customer”) who supplies OEMs and Tier 1 aircraft manufacturers.
This extension adds a further 12 months to the existing Agreement taking the contract term through to the end of December 2019 and secures existing business with an annualised value in the region of £10M. The aircraft platforms concerned are the Airbus A320, A330, and A380 and other regional business jets which are all strategically important platforms.
The extension comes after Velocity has been providing a full clean-room service for several years and supports the Customer in managing changes in programmes across their portfolio. During this extended period, Velocity and the Customer will enter into discussions over a new Long Term Agreement, subject to commercial competitiveness.
Jon Bridges, Chief Executive Officer of Velocity commented:
“This is a significant Agreement with an important Customer for whom we have provided a full clean-room service for many years. Both parties cooperate closely and work together to remove inherent waste from the composites supply chain and provide materials in a lean and efficient way. We look forward to working with the Customer through the changes in programme volumes, and progressing our discussions regarding a new Long Term Agreement during 2019.”
The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via regulatory news service this inside information is now considered to be in the public domain.