UK aerospace manufacturer Velocity has grabbed the attention of investors, after announcing its entry into the US market via a $100m (£82.2m) deal.
Shares in the London-listed firm rocketed more than 70 per cent to 46p per share by early afternoon on Tuesday.
The five-year deal with GKN Aerospace is expected to bring in $100m in revenue over the agreement’s lifespan.
GKN is set to use Velocity’s advanced resource planning technology and supply chain services to support in operations, with the pair soon to be based near one another in the US state of Alabama.
Velocity, which makes plan parts, is currently developing an 40,000 square foot advanced manufacturing facility in Alabama, close to GKN’s site.
The financial benefits of the deal are expected to pull through in the first quarter of next year and continue until 2028.
Andy Beaden, chairman of Velocity, said the deal marked a “major milestone” in the company’s history.
“We expect a step change in the use of carbon fibre in aircraft structures to improve fuel efficiency and deliver greater sustainability in the move to net zero. We believe this will increase the adoption of Velocity’s technology and services to improve manufacturing efficiencies and inventory supply lead times,” he said.
“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 expanding further in the US.”