Defence contractor Chemring has announced contract wins worth £278m at its Norwegian and US subsidiaries, amid a surge in demand for military equipment due to escalating geopolitical tensions.
The Hampshire-based company revealed that its Norwegian chemicals division, Chemring Nobel, has entered into a 12-year framework agreement with German weapons manufacturer Diehl Defence, as reported by .
As part of the deal, Chemring Nobel has agreed to an order valued at €231m (£193.9m), with deliveries under the contract set to begin in late 2026 for a duration of five years.
Chemring also disclosed that its US subsidiary, Chemring Energetic Devices, which produces electric devices for the aerospace and defence sectors, has received an order worth $106m (£81.7m) for critical components to be used in an undisclosed US missile programme.
Michael Ord, CEO of Chemring, praised the significant contract wins, stating: "These significant contract wins illustrate the deep long-term relationships that we have built with our customers," He added: "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."
This news comes as government defence spending increases in response to conflicts in the Middle East and Ukraine. Major defence companies such as BAE Systems, Lockheed Martin and Qinetiq have reported burgeoning order books and record sales following Russia's full-scale invasion in February 2022.
Chemring, the defence technology company, has reiterated its full-year guidance for the year ended 31 October, which is expected to align with consensus expectations of £70.9m. The firm's shares have seen a rise of over 26 per cent in the last 12 months and experienced a nearly two per cent increase in early trading on Monday.
In October last year, Chemring, known for its production of countermeasures and sensors, reported a record-high order intake of £922m.
