Velocity Composites strikes $100m US deal

Burnley-based Velocity Composites has signed an agreement to supply GKN Aerospace's Alabama operation. The deal is expected to be worth more than $100m in revenue over the next five years.

Velocity produces high-performance composite structures for the aerospace sector including military, civil and business jet programmes.

The company will build a new 40,000 sq ft advanced manufacturing facility in the USA to supply GKN. It will operate to clean room standards and feature Velocity’s proprietary digital technology and latest manufacturing systems.

Work on the facility is at an advanced stage, and it is expected that site approvals and first article tests will be completed by the end of February 2023, followed by volume production in Q1 2023, with all programmes transferred to Velocity under the Agreement by Q3 2023. Velocity plans to train and employ up to 30 local staff, supported initially by existing staff from the UK.

The collaboration with GKN, a global leader in the use of composite materials in engineered aerospace structures, sees Velocity enter the US market for the first time and its new site will be the first operated by Velocity outside of the UK.

Andy Beaden, chairman of Velocity Composites, said: “This is a major milestone for Velocity as we make a permanent entry into the US market and expand our long-standing relationship with GKN. During the pandemic, we worked hard to deepen our relationships with clients and further invest in our technology to prepare for the recovery.

“We believe this agreement will be part of a long-term positive trend from which Velocity will benefit, as customers look to recover from the pandemic and achieve new and improved ways of working, with a key focus on sustainability, as production rates increase to pre-pandemic levels.

“As a company with its roots firmly in the North of England, this agreement is a significant endorsement of both Velocity’s, and the region’s, manufacturing expertise from one of the world’s leading aerospace suppliers. In the future, we look forward to working with more US-based customers.”

The agreement builds on Velocity’s long-standing relationship with GKN Aerospace which started in 2015 and includes existing contracts at three of GKN Aerospace’s UK sites, including Bristol, Luton, and the Isle of Wight. This is the first time that Velocity has worked with GKN outside the UK.