Velocity to supply kits for Boeing 737 MAX programme
Advanced composite material kit supplier Velocity Composites has reached a long-term agreement to secure the supply of complex design consumable kits for the Boeing 737 MAX programme, it announced on Friday.
The AIM-traded firm said the contract also encapsulated the finalisation of the agreement for the provision of complex vacuum bags on the programme.
It said the agreement extended to 31 December 2021, with a contract value of £3m.
The composite material kits would be produced in Velocity's Fareham site, starting immediately, and used by its customer for the wing construction on the Boeing 737 Max.
Velocity said the contract signalled a new agreement with an existing customer who is a Tier 1 supplier in the aerospace industry, and was also a “significant first” for Velocity on the Boeing 737 Max programme, which is a high-growth Boeing platform.
“This latest signing of a long term agreement with one of our existing customers is a significant and positive step for Velocity, and importantly is our first contracted Boeing platform, which continues the trading momentum that the company has experienced in the year so far,” said chief executive Jon Bridges.
“We are confident that the added value the company brings through lowering waste and cost in the aerospace industry will lead to the continued growth of Velocity's role in the aerospace manufacturing supply chain.
“I am also hopeful that these two packages of work will, in turn, lead to further contract awards.”