Chemring Group (LSE:CHG) Norwegian subsidiary has signed a 15-year partnering agreement with Northrop Grumman to supply HMX material used in its missile programmes.
The agreement is part of Northrop Grumman's efforts to expand its munitions manufacturing production in response to growing customer demand.
As part of this agreement, Chemring also received a delivery order from Northrop Grumman, valued at US$83 million, for the supply of rocket propellant HMX.
Deliveries under this order will commence in 2026 with all work being carried out at at Sӕtre, Norway.
Michael Ord Chemring’s chief executive, commented: "These awards, which illustrate the long-term and valued relationship that we enjoy with Northrop Grumman, support our decision to invest in increasing the capacity of our three energetics businesses over the medium term and reinforces Chemring's position as a key supplier to NATO."