FOR IMMEDIATE RELEASE
10
OCTOBER 2024
CHEMRING GROUP PLC
("Chemring", the "Group" or the "Company")
CHEMRING NOBEL AND THE
NORWEGIAN GOVERNMENT
LAUNCH FEASIBILITY STUDY INTO
NEW PRODUCTION FACILITY
Since Russia's invasion of Ukraine in
2022, the Norwegian Government has taken a number of steps to
increase production capacity in the Norwegian defence industry.
This includes co-funding Chemring Nobel £32m, alongside the EU, to
more than double capacity at its current site.
On 10 October 2024 the Norwegian
Government announced new measures to strengthen the Norwegian
defence industry. Launching its roadmap for increased production
capacity in the defence industry, the Norwegian Government has
identified that the production of high explosives in Europe is
significantly lower than the growing demand, especially for HMX,
RDX and NTO. It also identified that, as one of only two
manufacturers of advanced military explosives in Europe, Chemring
Nobel's production is crucial to both NATO and European
allies.
The Norwegian Government has
therefore announced that it will co-finance and participate in a
feasibility study with Chemring Nobel to assess the development of
a new production facility to increase the production of military
explosives at Chemring Nobel.
This co-funded feasibility study,
which is expected to be concluded by the end of 2024, will among
other things investigate the geographic location, infrastructure
requirements and environmental considerations of building a new
production facility. The study will also consider the role and the
levels of any financial contribution made by the Norwegian
Government.
More information can be found
here:
Launching Defence Industry Roadmap -
regjeringen.no
https://www.regjeringen.no/en/aktuelt/regjeringen-oremerker-967-millioner-for-a-styrke-norsk-forsvarsindustri/id3058695/
Norway's Minister of Defence, Bjørn Arild Gram,
commented:
"We see the production of military
explosives as the most crucial Norwegian defence industrial
contribution to Ukraine and Allied forces' needs. Chemring is one
of only two major manufacturers of advanced military explosives in
Europe, and in our opinion they are the producer in Europe and
North America that can establish increased production the
fastest. Chemring's production is crucial to help the West
continue to support Ukraine with weapons. This joint study is key
to unlocking further capacity into the supply chain."
Michael Ord, Chief Executive of Chemring,
added:
"Today's announcement is a clear
indicator of the need to rapidly increase capacity across the
defence industrial base to counter the numerous threats faced by
NATO and its European allies. We are grateful to the support being
provided by the Government of Norway and look forward to working
closely with them on this important project."
For
further information:
Rupert
Pittman Group Director of
Corporate Affairs,
01794 463401
Chemring Group
PLC
James
McFarlane MHP
Group
07584 142665
Ollie
Hoare
07817
458804
Cautionary
statement
This announcement contains
forward-looking statements that are based on current expectations
or beliefs, as well as assumptions about future events. These
forward-looking statements can be identified by the fact that they
do not relate only to historical or current facts. Forward-looking
statements often use words such as anticipate, target, expect,
estimate, intend, plan, goal, believe, will, may, should, would,
could, is confident, or other words of similar meaning. Undue
reliance should not be placed on any such statements because they
speak only as at the date of this document and, by their very
nature, they are subject to known and unknown risks and
uncertainties and can be affected by other factors that could cause
actual results, and Chemring's plans and objectives, to differ
materially from those expressed or implied in the forward-looking
statements. There are a number of factors which could cause actual
results to differ materially from those expressed or implied in
forward-looking statements. Among the factors that could cause
actual results to differ materially from those described in the
forward-looking statements are: increased competition, the loss of
or damage to one or more key customer relationships, changes to
customer ordering patterns, delays in obtaining customer approvals
for engineering or price level changes, the failure of one or more
key suppliers, the outcome of business or industry restructuring,
the outcome of any litigation, changes in economic conditions,
currency fluctuations, changes in interest and tax rates, changes
in raw material or energy market prices, changes in laws,
regulations or regulatory policies, developments in legal or public
policy doctrines, technological developments, the failure to retain
key management, or the key timing and success of future acquisition
opportunities or major investment projects. Chemring undertakes no
obligation to revise or update any forward-looking statement
contained within this announcement, regardless of whether those
statements are affected as a result of new information, future
events or otherwise, save as required by law and
regulations.
Notes to editors
· Chemring
is a FTSE250 global business that specialises in the manufacture of
high technology products and the provision of services to the
aerospace, defence and security markets
· Employing
approximately 2,600 people worldwide, and with production
facilities in four countries, Chemring meets the needs of customers
in more than fifty countries
· Chemring
is organised under two strategic product segments: Sensors &
Information and Countermeasures & Energetics
· Chemring
has a diverse portfolio of products that deliver high reliability
solutions to protect people, platforms, missions and information
against constantly changing threats
· Operating
in niche markets and with strong investment in research and
development ("R&D"), Chemring has the agility to rapidly react
to urgent customer needs
www.chemring.com.
