September 4, 2018 / 6:45 AM / 2 months ago

Chemring working on restart of CCM factory after blast

(Reuters) - Defence contractor Chemring Group Plc (CHG.L) said on Tuesday it was working with regulators on a plan to restart its Chemring Countermeasures (CCM) factory after an explosion last month that killed one employee and injured another.

Chemring said it was still investigating the causes of the explosion in the MTV flare mixing building at the facility, which makes products to protect military ships and aircraft from missiles.

“We are also working with the regulatory bodies on the UK CCM site restart,” the company said, without giving a timeline.

“The initial steps of this plan will be to complete the shipment of finished goods inventory and initiate a phased restart of non-MTV product lines,” it added.

It said that trading was in line for the four-month period through Aug. 31 and that it received 78 million pounds worth of orders in its countermeasures segment during the period.

The majority were from the United States government for spectral, infrared and special material decoys that are made at its U.S. facilities.

“This provides strong order book coverage for our 2019 financial year,” the company said.

It also adjusted its guidance for impact from the explosion at the factory, near Salisbury in Wiltshire, to “around the middle” of an earlier estimate that it would knock 10-20 million pounds off full-year underlying operating profit.

Defence companies have been benefiting from increased spending by the United States under President Donald Trump, who had called for a “bigger and better and stronger than ever before” defence last year.

Reporting by Muvija M in Bengaluru

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