Velocity Composites PLC Boeing Approval and Expanded Long Term Agreement (3841A)
21 Gennaio 2020 - 8:00AM
UK Regulatory
TIDMVEL
RNS Number : 3841A
Velocity Composites PLC
21 January 2020
21 January 2020
Velocity Composites plc
("Velocity" or the "Company")
Boeing Approval for the Supply of Structural Composites
and Long Term Agreement Expanded
Velocity Composites plc (AIM: VEL.L), the leading supplier of
advanced composite material kits to the aerospace market, is
pleased to announce that it has received approval from Boeing to
supply structural composite material kits for Boeing's single isle
narrow body jet platform (the "Boeing Approval Certificate"). This
approved status follows 18 months of preparation, planning and
audit, involving the Company, Boeing and the Tier 1 advanced
aerostructure manufacturer through whom the Boeing contract is
managed (the "Customer"). The receipt of Boeing's approval will
form a key element in the Company's future growth strategy.
The Company announced on 1 June 2018 that it had entered into a
Long Term Agreement to supply complex design kits for the Boeing
737 Max programme. Following receipt of the Boeing Approval
Certificate, the Company is pleased to announce that the Long Term
Agreement has now been expanded to include the supply of structural
composite material kits for Boeing's single aisle narrow body jet
platform, the 737 Max (the "Agreement").
Velocity has been supplying the Customer with highly complex
process material kits and vacuum bags for the 737 Max for
approximately two years. The new Agreement secures sales of
structural composite material kits for this platform, in line with
the production programme rate going forward and for the duration of
the Customer's contract with the ultimate OEM.
The Agreement includes the provision of a full Velocity managed
service from a forward stocking location based at the Customer's
site. This new service offering is a key pillar in the Group's
growth strategy to grow customers and service facilities. The Board
believes that being in close proximity to customers will create
significant new business opportunities for the Group.
Velocity is now producing its First Article Inspection (FAI)
products in respect of structural material kits for the platform
under the Agreement and expects to supply these for Customer
approval by the end of January 2020, after which the Group will be
in a position to meet the Customer's demand going forward.
Jon Bridges, CEO of Velocity, said:
"We are absolutely delighted to have secured approval from
Boeing for our structural material kits and to have extended the
substantial contract with an important customer. Velocity will now
be supplying all its materials for the Boeing 737 Max programme in
value-engineered kit form. This is the culmination of close,
multi-functional cooperation from all parties and working together
with the Customer to remove waste from the composite material
supply and production process.
"This award strengthens the Group's catalogue of regulatory and
industry qualifications and approvals, which includes Airbus and
several Tier 1 aerostructure manufacturers, and fulfils key
elements of our strategy, to grow customers and sites, to expand
our approvals and increase the use of composites in aircraft
manufacture."
Enquiries:
Velocity
Jon Bridges, Chief Executive Officer
Andy Beaden, Chairman +44 (0) 1282 577577
Cenkos (Nominated Adviser and Broker)
Russell Cook
Ben Jeynes +44 (0)20 7397 8900
Belvedere Communications (Financial PR) VelocityPR@belvederepr.com
Cat Valentine +44 (0) 7715 769 078
Keeley Clarke +44 (0) 7967 816 525
About Velocity
Velocity Composites is a manufacturer of composite material kits
for the aerospace industry, delivering engineered kits for its
customers to build component parts. The Company's clients include
multi-national manufacturers of composite parts and assemblies, who
in turn deliver to the world's leading civil and military aircraft
manufacturers. The Airbus A330, A350, A380, Eurofighter Typhoon,
F35 Joint Strike Fighter and Bell Boeing V22 Osprey are all
constructed using parts manufactured from Velocity's kits. The
Company's business model reduces the operating costs of preparing
composite materials ahead of their usage in the construction of an
aircraft part and as such, its offering is disposed to being
self-financing for aircraft parts' manufacturers. Velocity
Composites also exports to Europe and North America.
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END
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