Velocity Composites secures extension with unnamed customer

Advanced composite material kit supplier Velocity Composites has secured an extension to a long-term agreement with an existing UK customer who supplies OEMs and Tier 1 aircraft manufacturers, it announced on Wednesday.

The AIM-traded firm said the extension added a further 12 months to the existing agreement, taking the contract term through to the end of December 2019, and secured existing business with an annualised value in the region of £10m.

It said the aircraft platforms concerned were the Airbus A320, A330, and A380, and other regional business jets which were all described as “strategically important” platforms.

The extension came after Velocity had been providing a full clean-room service for several years, the company explained, and supported the customer in managing changes in programmes across its portfolio.

During the extended period, Velocity and the customer would enter into discussions over a new long-term agreement, subject to commercial competitiveness.

“This is a significant agreement with an important customer for whom we have provided a full clean-room service for many years,” said Velocity chief executive officer Jon Bridges.

“Both parties cooperate closely and work together to remove inherent waste from the composites supply chain and provide materials in a lean and efficient way.

“We look forward to working with the customer through the changes in programme volumes, and progressing our discussions regarding a new long-term agreement during 2019.”