Business
Boeing Approval and Expanded Long Term Agreement
Boeing Approval and Expanded Long Term Agreement.
About this update from Velocity Composites Plc
[{"type":"text","content":"\n \nRNS Number : 3841A Velocity Composites PLC 21 January 2020 \n\n21 January 2020\n \nVelocity Composites plc\n(\"Velocity\" or the \"Company\")\n \nBoeing Approval for the Supply of Structural Composites\nand Long Term Agreement Expanded\n \nVelocity Composites plc (AIM: VEL.L), the leading supplier of advanced composite material kits to the aerospace market, is pleased to announce that it has received approval from Boeing to supply structural composite material kits for Boeing's single isle narrow body jet platform (the \"Boeing Approval Certificate\"). This approved status follows 18 months of preparation, planning and audit, involving the Company, Boeing and the Tier 1 advanced aerostructure manufacturer through whom the Boeing contract is managed (the \"Customer\"). The receipt of Boeing's approval will form a key element in the Company's future growth strategy.\n \nThe Company announced on 1 June 2018 that it had entered into a Long Term Agreement to supply complex design kits for the Boeing 737 Max programme. Following receipt of the Boeing Approval Certificate, the Company is pleased to announce that the Long Term Agreement has now been expanded to include the supply of structural composite material kits for Boeing's single aisle narrow body jet platform, the 737 Max (the \"Agreement\").\n \nVelocity has been supplying the Customer with highly complex process material kits and vacuum bags for the 737 Max for approximately two years. The new Agreement secures sales of structural composite material kits for this platform, in line with the production programme rate going forward and for the duration of the Customer's contract with the ultimate OEM.\n \nThe Agreement includes the provision of a full Velocity managed service from a forward stocking location based at the Customer's site. This new service offering is a key pillar in the Group's growth strategy to grow customers and service facilities. The Board believes that being in close proximity to customers will create significant new business opportunities for the Group.\n \nVelocity is now producing its First Article Inspection (FAI) products in respect of structural material kits for the platform under the Agreement and expects to supply these for Customer approval by the end of January 2020, after which the G...