Meggitt strikes $40m US jets fuel cell deal

 
Michael Bow
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MEGGITTT has won a $40m (£25,5m) contract to supply fuel cells to US combat jets.

The firm replaces fuel cells in old Hornet planes owned by US military supply company Defense Logistics Agency. The three year contract, worth up to $39.8m, is driven by demand for the jets from the US Navy and sales overseas in Spain, Finland and Switzerland.

Meggitt is producing the cells at its specialist polymers and composites factory in Rockmart, situated in the US state of Georgia.

The company will start delivery of the cells in the last quarter of this year.

Chief executive Stephen Young said: “Meggitt is synonymous with flexible crashworthy and ballistically-resistant fuel cell technology in this market.

“However, a critical success factor in winning this award was our Rockmart facility's outstanding quality standards and superior delivery performance.”

The deal comes just weeks after the company agreed to buy Cobham’s aerospace design business for $200m.

Shares are up 3.5 per cent so far this year.