5th Jan 2006 16:28
FOR IMMEDIATE RELEASE 5 JANUARY 2006 CHEMRING GROUP PLC ALLOY SURFACES EXPANDS SIGNIFICANTLY TO SATISFY MAJOR NEW CONTRACT Chemring Group PLC ("Chemring") announces that its US countermeasures business,Alloy Surfaces Company, Inc. ("Alloy Surfaces"), has signed a Memorandum ofUnderstanding with the US Department of Defense (the "DoD") which will lead toAlloy Surfaces increasing capacity for one of its special material decoys from20,000 units to 80,000 units per month. On that basis, the increase in orderscan be expected to generate additional sales of at least $150 million over thenext three years.Alloy Surfaces is expanding one of its two existing plants and has commissioneda third manufacturing facility, which will become operational in the summer of2006, in order to satisfy the significantly increased requirement from the DoDfor these unique decoys, which are utilised on helicopters and transportaircraft. It is envisaged that the investment will cost in the region of$8 million and will be funded out of existing resources.Dr David Price, Chief Executive of Chemring, commented: "I am delighted toannounce the signing of this Memorandum of Understanding between Alloy Surfacesand the DoD. Over the last few years, operational demand for our specialmaterial decoys has grown significantly, and Alloy Surfaces is now the largestsupplier of expendable decoys in the world, with annual sales currently inexcess of $75 million. The opening of a third facility, a year after AlloySurfaces' second plant became operational, demonstrates the massive growth thatthis business has delivered in recent years."Chemring is an international leader in defensive countermeasures, energeticmaterials and marine safety products. The countermeasures division comprisesAlloy Surfaces Company, Inc. and Kilgore Flares Company LLC in the US, andChemring Countermeasures in the UK.For further information:Paul Rayner Finance Director, Chemring Group PLC 01489 881880Anthony Cardew Cardew Group 0207 930 0777ENDCHEMRING GROUP PLCRelated Shares:
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