Velocity Composites PLC Major milestone achieved at new Alabama facility
April 18 2023 - 2:00AM
RNS Non-Regulatory
TIDMVEL
Velocity Composites PLC
18 April 2023
REACH
18 April 2023
VELOCITY COMPOSITES PLC
(Velocity or the "Company")
Major milestone achieved at new Alabama facility
Velocity Composites plc (AIM: VEL), the leading supplier of
composite material kits to aerospace and other high-performance
manufacturers, is delighted to announce the successful manufacture
of the first composite production kits from its new advanced
manufacturing facility in Alabama, US.
The manufacture of the first production kits is a major
milestone at the site which was built to support the five-year Work
Package Agreement that was announced in December 2022 with GKN
Aerospace in the United States (the " Customer "). The agreement is
expected to be worth in excess of US$100 million in revenue over
five years, with the Customer confirming strong end user demand for
its parts into 2024.
This milestone is the culmination of an intensive period of
training, audits, and approvals, during which the site successfully
achieved AS9100, Rev. D approval in November 2022. Several prime
customer audits followed throughout December 2022 and January 2023,
and concluded in full customer audit approval and authority to
proceed with First Article Manufacture being provided in February
2023. This critical step was the ultimate verification by the
customer that the site infrastructure, capability, trained
processes, quality and transfer plans presented by Velocity
exceeded the required standard.
A detailed First Article Inspection plan, which has been agreed
with the Customer, continues to be implemented. One of each
composite kit will be manufactured, delivered and verified before
proceeding to sustained volume production. This will take place on
a programme-by-programme basis and will lead to the phased transfer
of ten aircraft programme projects to Velocity. The final programme
is scheduled to be completed within this financial year and will
enable a full rate of production to commence either at or before
the next financial year.
The kits for the first programme are currently being transferred
and account for approximately 18% of the total contract annual
revenue. Work is already underway for the second programme and,
being the single largest programme, accounts for a further 25% of
the total contract annual revenue. This therefore means that
approximately 43% of the total contract annual revenue is on
schedule to be approved and at rate production by the end of May
2023, with the remainder to follow.
The facility is now also being marketed as a launch hub for
future customers, and high-level business development activities
are already underway with several large potential customers.
Jon Bridges, Chief Executive, Velocity, said:
"This is a major milestone for Velocity Composites as we expand
into North America. The whole Velocity team, both in the US and UK,
have worked incredibly hard to deliver a fully operational site, a
well-trained team, and a stand-up and approval plan ready to start
delivering flying products to our launch customer.
The site can move forward into production ramp-up with continued
support from the UK team and close collaboration with our customer
to ensure a smooth transfer of the entire project.
For myself and the Velocity team, the customer and industry
approvals of this new showcase facility is further endorsement that
our business model, processes and technology are world class in our
industry, and our targeted business development activities are
further enhanced by having a capable advanced manufacturing site in
North America with significant capacity to grow."
Enquiries:
Velocity Tel: +44 (0) 1282 577577
Andy Beaden, Chairman
Jon Bridges, Chief Executive Officer
Adam Holden, Finance Director
Cenkos (Nominated Adviser and Broker) Tel: +44 (0) 20 7397 8900
Katy Birkin
Ben Jeynes
George Lawson
SEC Newgate (Financial Communications) Tel: +44 (0) 7540 106 366
Robin Tozer / George Esmond Email: velocitycomposites@secnewgate.co.uk
Harry Handyside
About Velocity Composites
Based in Burnley, UK, and with operations in the US, Velocity
Composites is the leading supplier of composite material kits to
aerospace and other high-performance manufacturers, that reduce
costs and improve sustainability. Customers include Airbus, Boeing,
Safran and GKN.
By using Velocity's proprietary technology, manufacturers can
also free up internal resources to focus on their core business.
Velocity has significant potential for expansion, both in the UK
and abroad, including into new market areas, such as wind energy,
urban air mobility and electric vehicles, where the demand for
composites is expected to grow.
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