Chemring has announced two significant contracts for its Norwegian subsidiary, Chemring Nobel. The company has secured a substantial twelve-year framework agreement with Diehl Defence GmbH & Co. KG for the supply of MCX energetic material.
The initial purchase order under this agreement is valued at €231 million, with deliveries scheduled over five years beginning in late 2026.
“These significant contract wins illustrate the deep long-term relationships that we have built with our customers. It is further evidence of the sustained and growing demand for our products and supports our investment decisions to increase the capacity of our three energetics businesses, and reinforces Chemring’s position as a key supplier to NATO,” said Michael Ord, Chief Executive of Chemring.
The agreement follows the successful collaboration between Diehl Defence and Nammo AS, who established an industrial working group in 2023 to supply 155mm munitions to the German Armed Forces and their allies.
In addition to the Diehl Defence deal, Chemring’s US subsidiary, Chemring Energetic Devices, has been awarded a significant contract worth $106 million to supply critical components for an undisclosed US missile programme. This five-year contract will commence deliveries in 2026.
Chemring took today’s contract win statement as an opportunity to reconfirm adjusted operating profit guidance for the year ended 31 October 2024, which is expected to be £70.9 million.