17th Jan 2023 12:04
(Alliance News) - Renold PLC shares jumped on Tuesday after it said it has won a seven year contract to supply the Royal Australian Navy, worth GBP8.7 million.
Renold is a Derby, England-based supplier of industrial chains and power transmission products. Its shares were up 3.4% to 25.70 pence each in London on Tuesday around midday.
The company said that the contract was won by Renold Couplings, part of the its Torque Transmission division.
Under the agreement, Renold will supply couplings for the Royal Australian Navy's Hunter class frigates over the next seven years. The flexible couplings are a component of a ship's propulsion system, the company noted.
The Hunter class frigates will be built by BAE Systems Australia in the Osborne Shipyard, South Australia. "The contract award represents a significant extension of the group's collaboration with BAE Systems for the supply of flexible couplings for naval vessels," Renold added
The company expects production of the couplings to begin in early 2023, with the first manufacturing programme scheduled to complete in 2030.
Chief Executive Robert Purcell said: "The award of the Hunter class contract is reflective of the quality of the service and product we have provided to other naval programmes and continues to underpin our belief in the Renold Hi-Tec product range.
"This excellent long-term contract will further underpin our Couplings business performance and shows the continued benefits of product development together with manufacturing and engineering excellence," Purcell added.
By Sophie Rose; Alliance News reporter
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