Business
US $100M GKN Agreement
US $100M GKN Agreement.
About this update from Velocity Composites Plc
[{"type":"text","content":"\n \n \n \n The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the UK version of the EU Market Abuse Regulation (2014/596) which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended and supplemented from time to time.\n \n Upon the publication of this announcement, this inside information is now considered to be in the public domain.\n \n \n \n \n \n 20 December 2022\n \n \n \n \n \n \n \n \n VELOCITY COMPOSITES PLC\n \n \n \n (\"Velocity or the \"Company\")\n \n \n \n \n \n \n FIRST ENTRY INTO THE US MARKET WITH US$100M GKN AGREEMENT\n \n \n \n Velocity Composites plc (AIM: VEL), the leading supplier of composite material kits to aerospace and other high-performance manufacturers, is delighted to announce the signing of a five-year Work Package Agreement (\"WPA\") with GKN Aerospace (the \"Agreement\") in the United States expected to be worth in excess of US$100 million in revenue over five years.\n \n \n The investment required to deliver the Agreement will come from Velocity's existing resources. To support this international expansion, the Company is developing its first advanced manufacturing facility outside of the United Kingdom, in the State of Alabama, which will deliver the Agreement.\n \n \n GKN Aerospace is a global leader in the use of composite materials in aerospace engineering structures. The collaboration with GKN Aerospace will utilise Velocity's advanced Velocity Resource Planning (\"VRP\") technology and supply chain services to support GKN Aerospace's sustainability and efficiency objectives in the aerospace industry. Such initiatives are seen as vital in the industry's push to achieving significant environmental and sustainability improvements this decade.\n \n \n The initial revenues for the Company under the Agreement are expected to commence in Q1 FY2023 and will continue\n through to FY2028. \n \n \n The work being undertaken by Velocity will cover a diverse range of high-performance composite structures across military, civil, and business jet programmes.\n \n \n The work will be undertaken at a new advanced manufacturing facility currently being developed by Velocity. The 40,000 sq. ft facility is close to the GKN Aerospace site in Alabama and has been upgrade...