Hampson secures £7m contract extension
Brierley Hill-based engineering group Hampson has secured a £7 million extension to a major contract to supply small, precision machined components.
Hampson Aerospace Machining, based in Leicester, will supply the items and the new agreement, which covers the period to December 2010, secures existing volumes and increased prices on certain components and also includes provision to ensure the recovery of potential future raw material cost increases.
Commenting on the agreement, chief executive Kim Ward said: “Hampson’s Aerospace Components & Structures division has demonstrated strongly improved performance in recent years.
“The backlog for gas turbine aero engines is at an all time global high. This contract extension demonstrates Hampson’s commitment and capacity to support our customers’ growth plans in a very strong market.”
The company has also announced that it has successfully completed the acquisition of US firms Odyssey Industries and Global Tooling Systems.
The two companies, which last year enjoyed sales of £70 million, are expected to generate growth in the core aerospace business, especially through the use of composite materials.
Meanwhile, defence group BAE Systems confirmed it had completed its £232 million acquisition of Ohio-based MTC Technologies after receiving all required shareholder and regulatory approvals.
MTC provides technical and professional services as well as equipment integration and modernisation to the US Department of Defense and national security agencies.