(Alliance News) - Ultra Electronics Holdings PLC on Tuesday said its Erapsco joint venture with US manufacturing firm Sparton DeLeon Springs LLC has awarded subcontracts for the manufacture of sonobuoys for the US Navy worth USD204.6 million in total.
A sonobuoy is a small floating sonar system that is dropped from aircraft or ships conducting anti-submarine warfare or underwater acoustic research.
The UK aerospace and defence engineering company said that under the five-year contract, Erapsco will provide production subcontracts worth USD101.7 million and USD102.9 million to Ultra Electronics and Sparton DeLeon.
Production of the sonobuoys will take place at Sparton's facility in DeLeon Springs in the US state of Florida and Ultra's Columbia City facility in the state of Indiana. Production is expected to complete by March 2022.
"This contract underpins our increased focus on anti-submarine warfare and our ability through ERAPSCO to provide a range of key technologies and capabilities to support the US Navy's continued commitment to this important mission. This award also reflects that, despite the challenges created by Covid 19, we are operating effectively and continue to support our customers due to the extraordinary efforts of our exceptional and committed team," said Ultra Electronics Chief Executive Simon Pryce.
The stock was trading 1.6% higher at 1,988.00 pence each on Tuesday morning in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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