Hampson Industries plc ("Hampson") is pleased to announce that its subsidiary, Robson Precision Ltd, has signed a contract to supply gas turbine engine components to Rolls-Royce plc in a "New Deal" initiative that could provide a turnover to the Birmingham based sub-contractor of 40 million pounds sterling ("pounds") over the next four years. The contract follows an earlier signing by Mibert Precision Ltd, another Hampson subsidiary, potentially worth 5 million pounds over three years.

The "New Deal" introduced by Britain's premier aircraft engine builder requires improving quality, costs and deliveries to "world class" levels from a reduced sub-contractor base. Robson was chosen because of the company's evidence of improvements in all areas of production and administration combined with a policy of continuous investment in modern machine tools.

Robson has provided Rolls-Royce plc with thousands of components for a wide range of aircraft engines over many years. The contract will allow the company to focus on a core base of fewer product lines with year-on-year cost reductions, at the right quality and with shorter lead times for delivery. The company is also aggressively reducing waste in all its forms, accelerating machine-tool setting times and improving quality yield.

Robson's components are often manufactured from castings, material and forgings supplied by third-tier companies with specialised skills. Achieving the aims of the contract will require a re-appraisal of sourcing and purchasing methods to ensure that the entire supplier chain adopts the same commitments to improvements required of Robson Precision.

Having moved recently to a prestigious new 60,000 sq.ft. factory north of the City of Birmingham, the company is already on target to supply "world class" products. Special manufacturing cells have been set up for specific product types to ensure a high level of skills and to provide a focus on families of components. Kan-Ban supply systems are being established to provide customers with continuity of supply and to eliminate manufacturing lead times.

In signing the deal, Hampson Industries' Chief Executive Chris Davies said:

"Rolls-Royce is leading the quest to become a 'world class' aircraft engine builder and Robson Precision is privileged to be part of the team that will make this happen. We have seen developing countries in the Far East and Asia competing with the manufacturing base of this country and it is vital that we take the action required to ensure that we stay in front. The 'New Deal' contract will ensure that we do."