StockMarketWire.com - UK defence group Chemring said its US-based subsidiary, Chemring Countermeasures USA, had won four contracts to supply countermeasures to support the US Navy and US Air Force.

The first contract, for the manufacture and delivery of MJU-64/B infrared decoys for the US Navy, was valued at $4.2m, and was awarded to CCM USA with a second year award option in 2020. Deliveries under this contract would be made in 2019, the company said.

The second contract, an $8.1m delivery order against an existing $94m three year Indefinite contract, was for the manufacture and delivery of MJU-66 flares for the US Navy and US Air Force. Deliveries under this contract would be made in 2020, the company said.

Under the third contract, lasting three years with a maximum value of $90m, the company would manufacture and delivery MJU-53/B flares to the US Air Force. The first delivery order against this contract was expected shortly with deliveries being made in 2020, the company said. Deliveries under this delivery/indefinite quantity (IDIQ) were expected to be completed by July 2023, the company added.

Under the fourth contract, a five-year IDIQ contract valued at $25m, Chemring would manufacture and deliver the MJU-52A/B BOL IR flare for the US Air Force F-15 ANG. The first delivery order against this contract was for $5.2m with deliveries being made in 2020, the company added.

'These contracts also complete the required 2019 order intake in our Countermeasures segment and provide a strong platform for 2020,' the company said.


At 9:12am: [LON:CHG] Chemring Group PLC share price was +2.4p at 184p



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