Velocity Composites reinforces key defense partnership with major defense contact renewal

Source | Velocity Composites

Velocity Composites plc (Burnley, U.K.), a supplier of advanced composite material kits to the aerospace and high-performance manufacturing sectors, has announced the successful renewal of its long-standing contract with a major global defense manufacturer. This 3-year extension is a notable development, reaffirming Velocity’s role in critical defense programs and supporting the company’s existing revenue forecasts for fiscal year 2025.

Velocity’s core business is centered on providing specialized composite material kits, a service designed to enhance efficiency, reduce internal costs and free up resources for its manufacturing customers. The company achieves this by meticulously managing the entire raw material supply chain. Leveraging proprietary process knowledge and cutting-edge software, Velocity reports that its approach minimizes material waste and optimizes the amount of material needed during the production of complex aircraft components. Its comprehensive offerings include structural material kits and engineered vacuum bag material kits, catering to diverse manufacturing requirements. Digital traceability is integrated throughout the company’s process to achieve high-value materials.

Velocity relationship’s with this unnamed defense OEM is said to be substantial, dating back to 2010. Under the terms of the renewed contract, Velocity will continue its role in supplying process material kits for major defense projects, specifically existing fourth and fifth generation fighter programs.

This close collaboration involves Velocity teams working directly with its customer on-site, undertaking essential inventory management and contributing to continuous improvement initiatives stipulated within the contract. The agreement also reflects current economic realities, incorporating a necessary price adjustment to account for increased operational costs, including labor, energy and finance, since the previous renewal.

The versatility of Velocity’s service model has been one of the criteria for the large order.

“We have been serving world class defense OEM’s as key partners for many years, and we are delighted to continue our relationship,” says Jon Bridges, CEO of Velocity Composites. “Our work with this particular OEM helps to reduce the cost of manufacture.”

Bridges also provided insight into Velocity’s broader strategic direction within the defense sector. “As noted in our recent results, our business development teams are building on existing relationships in defense sector and developing our business case with other defense OEMs in Europe and the U.S.,” he says. This proactive approach positions Velocity to capitalize on the increasing global defense expenditure, which Bridges pointed out is currently rising.

The versatility of Velocity’s service model has been one of the criteria for the large order. “Our services are identical for defense customers who share similar issues to civil aircraft, underscoring Velocity’s ability to apply its specialized kitting and supply chain management expertise across different aerospace segments,” Bridges explains.

The renewal and strategic focus align with Velocity’s recent expansion efforts, including the establishment and NADCAP accreditation of its first U.S. facility in Alabama. This site is also dedicated to supplying composite material kits for another global aerospace prime, initially for GKN Aerospace.

Recent financial results further support this growth trajectory, showing a significant increase in revenue, particularly driven by U.S. sales following the onboarding of a major manufacturer.