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Tuesday, December 20, 2022 12:34 PM
British aerospace manufacturer Velocity has caught the attention of investors after announcing its entry into the US market in a $100 million (£82.2 million) deal.
The London-listed company’s shares surged more than 70% early Tuesday afternoon to 46 pence a share.
The five-year deal with GKN Aerospace is expected to bring in $100 million in revenue over the life of the deal.
GKN will use Velocity’s advanced resource planning technology and supply chain services to support its operations, and the pair will soon be based near Alabama, USA.
Velocity, a manufacturer of planar parts, is currently developing a 40,000 square foot advanced manufacturing facility in Alabama near the GKN site.
The economic benefits of the deal are expected to materialize in the first quarter of next year and continue through 2028.
Velocity chairman Andy Beaden said the deal marked a “huge milestone” in the company’s history.
“In the transition to net zero, we expect to see a further shift in the use of carbon fiber in aircraft construction to improve fuel efficiency and achieve greater sustainability. We believe that this will increase the adoption of our products and services, improving manufacturing efficiency and inventory supply lead times.”
“As a company with roots in the north of England, this deal is a great endorsement of both Velocity, one of the world’s leading aerospace suppliers, and our local manufacturing expertise. I look forward to doing it.”
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