Chemring wins £73.2m contract with US Army

The defence firm will refurbish vehicles with mine detection technology.

Chemring has won a contract to refurbish the US Army’s Husky vehicles(Andrew Matthews/PA)
Chemring has won a contract to refurbish the US Army’s Husky vehicles(Andrew Matthews/PA)

Defence group Chemring has been awarded a 93 million US dollar contract (£73.2 million) from the US Defence Department.

The group said on Thursday that it had won a contract to refurbish the US Army’s Husky vehicles, which are used to detect mines.

The new Husky fleet will include technologies designed by Chemring which the company has been developing for several years.

Chemring said the new detection systems will be “effective against the most challenging targets”.

Shares in Chemring were up 1.7% to 207.5p after the announcement.

Group chief executive Michael Ord said: “This award represents a significant development for Chemring and is the culmination of a number of years of research and development activity.

“It demonstrates the progress that the group is making on its roadmap and the move to focus on our higher margin, niche market positions where the group is best placed to generate future value.”

The contract win comes shortly after Chemring said it could take a £20 million hit after an employee died in an accident at its site near Salisbury.

The defence firm said one worker was killed and another “badly” injured at its flare manufacturing building at its Chemring Countermeasures facility.

Full-year underlying operating profit is likely to be around £10 million to £20 million lower than previously expected as a result of the accident.

Chemring’s shares tumbled by more than 20% on the news.

Press Association

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