(Sharecast News) - Engineering group Renold has locked in a contract valued at £8.7m via its Renold Couplings subsidiary.
Renold said on Tuesday that the award, which will be delivered over the next seven years, was for the supply of flexible couplings for the Royal Australian Navy's Hunter class frigates - an important component of a ship's propulsion system.
The AIM-listed group stated that frigates will be built by BAE Systems Australia and said the contract award represented "a significant extension" of its collaboration with BAE. Production of the couplings will commence in early 2023 at Renold's Cardiff facility, while the first manufacturing programme was scheduled to complete in 2030.
Chief executive Robert Purcell said: "I am delighted that Renold will continue to work with BAE Systems Australia to deliver couplings for the next generation frigates.
"This excellent long-term contract will further underpin our Couplings business performance and shows the continued benefits of product development together with manufacturing and engineering excellence."
As of 1045 GMT, Renold shares were up 5.24% at 26.15p.
Reporting by Iain Gilbert at Sharecast.com
Renold (RNO)