Chemring wins two contracts worth $42m

Chemring's US subsidiary Chemring Countermeasures has been awarded two contracts worth around $42m.

The first contract, valued at around $32m, is for the manufacture and delivery of infrared decoys for the US Army and Air Force. Deliveries under this contract will be made between 2018 and 2019 with all work to be performed at CCM USA's facility in Toone, Tennessee.

The second contract is for the manufacture and delivery of special material decoys for the US Air Force. Deliveries under this contract will be made next year, with all work to be performed at CCM USA's facility in the Chester Township, Pennsylvania.

Group chief executive Michael Ord said: "These contracts demonstrate the continued confidence of the US Army and Air Force in Chemring's ability to develop and supply quality aircraft countermeasures, and it reinforces the group's decision to invest in the transformation project at our Tennessee facility.

"These contracts complete the required FY18 order intake in our Countermeasures segment, provide a strong platform for FY19, and are further evidence of the recovery, and our strengthening position, in the global countermeasures market."

At 1500 BST, the shares were up 2% to 227p.