Renold wins £10.6m contract with Royal Canadian Navy

(Sharecast News) - Industrial chains and power transmission products supplier Renold has secured a contract to manufacture flexible couplings for Batch 1 of the Canadian Surface Combatant ships for the Royal Canadian Navy, worth £10.6m.

Renold said on Wednesday that the contract, together with other military work recently awarded, means that its military order book has now increased by £13.1m over the last few months.

The AIM-listed group stated the contract, to be delivered over the next six years, was for flexible couplings and represents a "significant extension" of its collaboration with Canada in supplying flexible couplings for naval vessels.

Renold added that the manufacturing of the flexible couplings was anticipated to commence in mid-2024 in its Cardiff facility.

Chief executive Robert Purcell said: "I am delighted that Renold are working with Irving Shipbuilding Inc on the next generation of Canadian warships. The award of the Canadian Surface Combatant contract builds on the success of our naval flexible couplings business which is already working on the British and Australian naval programmes and this success underpins our belief in the Renold Hi-Tec product range.

"This excellent long-term contract will further reinforce our couplings business performance and shows the ongoing benefits of our product development strategy combined with our manufacturing and engineering excellence."

As of 1155 BST, Renold shares were up 0.40% at 50.20p.

Reporting by Iain Gilbert at Sharecast.com