Northrop Grumman Secures Long-Term Supply Agreement with Norway’s Chemring Nobel

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Northrop Grumman Corporation and Chemring Nobel AS (CHN), a Norwegian-based specialty chemicals company, recently signed a long-term sourcing agreement for high-energy, explosive powder known as HMX to support warhead production at Northrop Grumman’s Missile Products manufacturing location at Rocket Center, West Virgina.

The agreement builds on the companies’ long-standing relationship and complements Northrop Grumman’s efforts to expand its munitions manufacturing in response to growing customer demand.

• Signed last month, the 15-year agreement effectively secures supply amid demand for the critical chemical used in the production of warheads for smart tactical missiles.  
• This long-term sourcing agreement provides for a reliable long-term supply, guaranteed lead times and annual quantities, and predictable pricing, which is important due to the strict performance, safety and reliability requirements associated with HMX.
• The agreement with Chemring Nobel, Europe’s largest producer of HMX, is the latest example of Northrop Grumman’s commitment to supporting Norway, NATO and the security of the High North through the shared development of advanced technologies and industrial investments.

Experts:

Stephen O’Bryan, corporate vice president and global business development officer, Northrop Grumman: “Northrop Grumman is committed to supporting Norway and its NATO partners in ensuring the security of the High North. The company is forging enduring partnerships with Norwegian industry, having awarded more than $500M in contracts in the last ten years.”

Helge Husby, managing director, Chemring Nobel: “As a supplier to Northrop Grumman for many years, we are delighted to have signed this long-term agreement. Chemring Nobel values this relationship and acknowledges the trust that this 15 years agreement places in us. We look forward to further developing our relationship and to providing a reliable security of supply.”