RCS - Chemring Group PLC - Chemring Nobel- feasibility study for new facility

ChemringAnnouncement

10/10/2024 10:00

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RNS Number : 7075H  Chemring Group PLC  10 October 2024

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/no/aktuelt/presseinvitasjon-lansering-av-regjeringens-veikart-for-okt-produksjonskapasitet-i-forsvarsindustrien/id3055949/)

 

https://www.regjeringen.no/en/aktuelt/regjeringen-oremerker-967-millioner-for-a-styrke-norsk-forsvarsindustri/id3058695/
(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. (http://www.chemring.com.)

 

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