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| Date | 10 Oct 2024 |
| Time | 10:00:00 |
| Category | Miscellaneous |
| ID | 7075H |
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
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