Ultra Electronics awarded £37m Electric Propulsion System contract

Ultra Electronics announced today that its PMES business, based in Rugeley Staffordshire, has been awarded a £37m contract by BAE Systems Maritime-Submarines in relation to a UK naval defence programme. This contract is for the final development and production of a hybrid Electric Propulsion System.

Under this contract, Ultra will provide the remaining non-recurring engineering and qualification of the system, as well as an initial provision of equipment for the programme. The system provides an alternate and more efficient propulsion option to main engines and forms part of the Emergency Propulsion capability.

This is the second of the three major contracts expected by the Group in the second half of the year. The first contract to supply the Indian Navy with new naval defence systems was announced in July.

Rakesh Sharma, Chief Executive of Ultra commented: “We are pleased by this contract as it showcases our specialist technology which has received company funded R&D for many years and reinforces our position as a leading provider of Submarine Propulsion technology. We are also pleased to be further developing our relationship with BAE Systems."