Kongsberg Automotive announced on Friday that it has secured a five-year contract extension where the company estimates revenues at 523 million euros – equivalent to NOK 6.1 billion over the life of the contract.
The contract is an extension of an existing contract that runs until 2028 and concerns the company’s Gear Control Unit (GCU) with integrated clutch actuator. The order has been placed by a major manufacturer of gearboxes for heavy trucks.
Production at the factories in Mexican Nuevo Laredo and Chinese Wuxi will thus continue until 2028.
The news helped to speed up the Kongsberg Automotive share on the Oslo Stock Exchange. At most, the share was up 16 per cent, before it fell back somewhat to an increase of 11.6 per cent on Friday afternoon.
– This contract extension emphasizes our position as a preferred long-term partner for critical technical products that prioritize innovation, technology and customer support, says sales director David Redfearn in a comment.
Kongsberg Automotive has had GCU production for over seven years. The GCU is a valve-based unit designed for trucks with a manual transmission, allowing them to drive as if they had an automatic transmission.
Tags: Kongsberg Automotive straight huge contract
