Velocity Composites, a leading supplier of advanced composite material kits has announced that it has secured an extension to a long-term agreement with an existing UK customer supplying OEMs and tier 1 aircraft manufacturers.
This extension adds a further 12 months to the existing agreement taking the contract term through to the end of December 2019 and secures existing business with an annualised value in the region of £10 million. The aircraft platforms concerned are the Airbus A320, A330, and A380 and other regional business jets which are all strategically important platforms.
The extension comes after Velocity has been providing a full cleanroom service for several years and supports the customer in managing changes in programmes across their portfolio. During this extended period, Velocity and the customer will enter into discussions over a new LTA, subject to commercial competitiveness.
“This is a significant agreement with an important customer for whom we have provided a full cleanroom service for many years,” stated Velocity’s CEO, 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.”
