Velocity Composites Signs Boeing 737 Max Long Term Supply Deal; Stock Climbs

(RTTNews) - Shares of Velocity Composites plc (VELT, VLTLF.PK, VEL.L) were gaining around 20 percent in the morning trading in London after the company announced Friday the signing of a Boeing 737 Max long term supply agreement. The deal extends to December 31, 2021 with a contract value of 3 million pounds.

Under the deal, the supplier of advanced composite material kits, providing engineering value-solutions for the global aerospace industry, has agreed to secure the supply of complex design consumable kits for the Boeing 737 Max programme.

In addition, the contract encapsulates the finalisation of the agreement for the provision of complex vacuum bags on this programme.

These composite material kits will be produced in Velocity's Fareham site starting immediately and used by Velocity's customer for the wing construction on the Boeing 737 Max.

Jon Bridges, Chief Executive Officer of Velocity Composites said, "We are confident that the added value the Company brings through lowering waste and cost in the aerospace industry will lead to the continued growth of Velocity's role in the aerospace manufacturing supply chain. I am also hopeful that these two packages of work will, in turn, lead to further contract awards." In London, Velocity shares were trading at 62.99 pence, up 20 percent.