Velocity Composites announce renewal of BAE Systems contract

Burnley based Velocity Composites, the leading supplier of advanced composite material kits to the aerospace market, has announced that it has renewed its relationship with the UK's biggest defence contractor, BAE Systems for a further three years.

The contract includes a price increase to account for the increased costs of labour, energy and finance since it was last renewed and the renewal supports the company's existing FY25 revenue expectations. 

 Velocity has been working with BAE Systems since 2010 and will continue to provide process material kits for the F35 and Typhoon programmes.

The business has a close working relationship with BAE Systems, with teams regularly working at BAE Systems' site in Samlesbury, Lancashire, to manage inventory and support continuous improvement activity, as part of the contract.

 Jon Bridges, chief executive officer of Velocity, said: "BAE Systems has been a key partner for many years, and we are delighted to continue our relationship.

"Our work with them helps to improve production standardisation and reduce the cost of composite part manufacture.

"As noted in our recent results, our business development teams are building on existing relationships in defence sector and developing our business case with other defence OEMs in Europe and the US.

"Global defence expenditure is rising, and our services are identical for defence customers who share similar issues to civil aircraft manufacturers in terms of the need to improve fuel and operating efficiencies."

The business supplies composite material kits to aerospace and other high-performance manufacturers, that reduce costs and improve sustainability and their customers include Airbus, Boeing, and GKN.

 By using Velocity's proprietary technology, manufacturers can also free up internal resources to focus on their core business. 

Velocity has significant potential for expansion, both in the UK and abroad, including into new market areas, such as wind energy, urban air mobility and electric vehicles, where the demand for composites is expected to grow.

The news comes after Lancashire Business View reported Burnley continues to show clout when it comes to manufacturing and engineering, with 16 per cent of the borough’s jobs in these sectors.

The North West’s aerospace cluster is the largest in Europe, contributing £7 billion to the UK economy, and Burnley is home to important players including Velocity Composites, Paradigm Precision and Safran Nacelles.