The contract with this defence OEM dates back to 2010. Under the terms of the renewed contract, Velocity will continue its role in supplying process material kits for major defence projects, specifically existing 4th and 5th generation fighter programmes. This collaboration involves Velocity teams working directly with their customer on site, undertaking essential inventory management and contributing to continuous improvement initiatives stipulated within the contract. The agreement also reflects current economic realities, incorporating a necessary price adjustment to account for increased operational costs, including labour, energy, and finance, since the previous renewal.
Jon Bridges, chief executive officer at Velocity Composites, highlighted the importance of the enduring partnership. “We have been serving world class defence OEM’s as key partners for many years, and we are delighted to continue our relationship”. Emphasising the tangible benefits Velocity delivers, Bridges added that their work with this particular OEM “helps to reduce the cost of manufacture”.
Bridges also provided insight into Velocity’s broader strategic direction within the defence sector. “As noted in our recent results, our business development teams are building on existing relationships in defence sector and developing our business case with other defence OEMs in Europe and the US”. This proactive approach positions Velocity to capitalise on the increasing global defence expenditure, which Bridges pointed out is currently rising.
Undoubtedly, the versatility of Velocity’s service model has been one of the major order winning criteria. “Our services are identical for defence customers who share similar issues to civil aircraft, underscoring Velocity’s ability to apply its specialised kitting and supply chain management expertise across different aerospace segments” he explains.
This renewal aligns with Velocity’s recent expansion efforts, including the establishment and Nadcap accreditation of their first US facility in Alabama. This US site is also dedicated to supplying composite material kits for another global aerospace prime, initially for GKN Aerospace.
