Chemring has several divisions, but none of them have much to do with chemicals or rings. Operating through four principal segments, the company specializes in designing and supplying aerospace and defense countermeasures and marine and military electronics and pyrotechnics. Its Munitions segment makes naval ammunition and missile system parts, while Countermeasures supplies flares and decoy components used to combat incoming missiles. Counter-IED supplies radar, chemical, and biological detection systems; Pyrotechnics offers beacons, radios, and emergency flares used for space, safety systems, military training, screening, and signaling purposes. Chemring's operations are located throughout the world.
For its fiscal year ended October 2011, Chemring saw its revenues climb by around 25% and its profits rise by almost 15%. It attributes the growth to increased orders from its Counter-IED and Munitions divisions. These increases were offset by a downturn in orders from its Countermeasures and Pyrotechnics segments, which were affected by cuts in government spending.
More than 50% of Chemring's operations cater to the US market, where the company has developed a strong relationship with the US Department of Defense. The arrangement enables Chemring to draw multi-year contracts, and it spurs the company to expand its pyrotechnic capabilities and explosive ordnance disposal (EOD) production through key US operational bases. The US and the UK manage their manufacturing operations, respectively. Though the majority of the company's operations are located in these two regions, Chemring is looking to expand in the Far East and the Middle East, as well as in other key international markets, which will be overseen by the company's international division.
As part of its growth strategy, the company has acquired companies involved in the manufacture of pyrotechnics, mechanical, and electronic products, primarily for use in aerospace and defense markets. Its 2011 acquisition of the detection systems operations of General Dynamics Armament and Technical Products extended its expertise in providing chemical and biological threat detection systems in the US market. Those acquired operations were rebranded as Chemring Detection Systems.
In late 2010 Chemring acquired electronic warfare company Roke Manor Research from Siemens for £55 million ($88 million). Roke's technologies combat improvised explosive devices, which are being used in Afghanistan. The company in 2010 also purchased US-based The Allied Defense Group (ADG) that year, along with its subsidiaries Mecar S.A. and Mecar USA for £36 million ($59 million). The Mecar businesses have a strong presence in the Middle East, and brought complementary products and technologies.
Chemring Group got its start in 1905. By the 1950s it was making lightweight radar reflectors. Invesco Limited owns about 30% of the company. – less