Shares of Manchester industrial chain and power transmission firm Renold plc rose about 6% after it announced that Renold Couplings, part of the company’s Torque Transmission division, has been awarded a contract with the Royal Australian Navy worth £8.7 million.

“The award, to be delivered over the next seven years, is for the supply of flexible couplings for the Royal Australian Navy’s Hunter class frigates,” said Renold.

“The flexible couplings, which are an important component of a ship’s propulsion system, are part of Renold’s Hi-Tec range of couplings, which are supplied worldwide for large marine and industrial projects.

“The Hunter class frigates will be built by BAE Systems Australia in the Osborne Shipyard, South Australia.

“The contract award represents a significant extension of the group’s collaboration with BAE Systems for the supply of flexible couplings for naval vessels.

“Production of the couplings is expected to commence in early 2023, and will be machined on a new machining centre which was installed in Renold’s Cardiff facility in 2022, specifically for naval programmes.

“The first manufacturing programme is scheduled to complete in 2030.”

Renold CEO Robert Purcell said: “I am delighted that Renold will continue to work with BAE Systems Australia to deliver couplings for the next generation frigates.

“The award of the Hunter class contract is reflective of the quality of the service and product we have provided to other naval programmes and continues to underpin our belief in the Renold Hi-Tec product range.

“This excellent long-term contract will further underpin our Couplings business performance and shows the continued benefits of product development together with manufacturing and engineering excellence.”