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(Sharecast News) - Chemring said on Wednesday that its Roke subsidiary has signed a multi-year strategic partnering agreement with a major US prime contractor worth at least $170m over the first five years.
The agreement is for the supply of Chemring's COTS Nav-Sync Miniature Radar Altimeter (MRA) product - the smallest and lowest mass radar altimeter of its type currently available for use on high-speed platforms and uncrewed air vehicles.
After the first five years, the agreement is expected to extend to at least 2035 as part of the continued relationship.
Chemring said Roke has received an initial $16m production order covering the first 12 months of the agreement and deliveries will commence in October.
Chief executive Michael Ord said the agreement "is another milestone in Roke's strategy to grow revenues from its growing portfolio of world-leading defence products and systems".
"It also demonstrates that, despite continued near-term headwinds in its domestic defence market, Roke continues to make progress in developing its international business, positioning it well for growth in the future," he added.
At 0850 BST, the shares were up 3.1% at 515.50p.
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