The initial purchase order under this agreement is valued at approximately £200 million (€231 million), with deliveries scheduled over a five-year period starting in late 2026. The deal forms part of a broader industrial collaboration between Diehl Defence and Nammo AS, created in 2023, to supply 155mm munitions to the German Government for its armed forces and allied support.
Nammo’s advanced munitions technology, vital for the production of 155mm munitions, relies solely on Chemring Nobel as the qualified supplier of MCX material. This reinforces Chemring Nobel’s strategic importance within the munitions supply chain.
In addition, Chemring’s US subsidiary, Chemring Energetic Devices (CED), has secured a substantial order valued at approximately £87 million ($106 million). This contract involves the supply of critical components for an undisclosed US missile programme, with deliveries also set to commence in 2026 over a five-year timeframe.
Reflecting on these developments, Chemring stated that its financial outlook for the year ending 31 October 2024 remains aligned with consensus expectations. Group adjusted operating profit is expected to be in the region of £70.9 million, as previously projected in their announcement on 17 October 2024.
Michael Ord, Chief Executive of Chemring, expressed confidence in the company’s strategic trajectory, stating: “These significant contract wins illustrate the deep long-term relationships that we have built with our customers. It is further evidence of the sustained and growing demand for our products and supports our investment decisions to increase the capacity of our three energetics businesses, and reinforces Chemring’s position as a key supplier to NATO.”
