PPK Group investee wins $30m ADF body armour contract
PPK Group (ASX: PPK) is celebrating a major $30 million Australian government defence industry order awarded to its investee company Craig International Ballistics (CIB).
Queensland-based CIB will supply body armour that will be used by Australian Defence Force (ADF) personnel, including in combat and counter terrorism operations.
CIB is already a major supplier to the ADF, having previously provided over 600,000 high quality body armour components.
The company’s new order will see it manufacture and deliver additional armour to help protect troops from moving threats like fragmentation, as well as low and high velocity rounds.
Job creation
Federal Minister for Defence Industry Pat Conroy said the contract will also create and sustain dozens of jobs.
“The Albanese Government is proud to be supporting CIB, a home-grown success story which employs hard-working Queenslanders, including veterans, in their efforts to keep our troops safe,” the minister said.
“From peace-keeping operations through to conflicts in Iraq and Afghanistan, CIB has been protecting ADF personnel with their world-class body armour for almost two decades.”
“This order […] is a prime example under the defence industry development strategy of how the government is supporting our sovereign defence industrial base and a future made in Australia.”
“CIB is a model for our nation’s robust, self-starting defence industry, which is an important part of our sovereign defence capability.”
Investment strategy
PPK’s strategy is focussed on investing capital and expertise in high-potential technology opportunities.
Its goal is to commercialise these technologies at scale and, when appropriate, exit the investments.
In a recent newsletter to shareholders, PPK highlighted the success of both Craig International Ballistics – in which it acquired a 45% interest in 2019 – and PowerPlus Energy, another company investment.
Both businesses have achieved solid growth in revenue in the first half and possess a strong pipeline of work to sustain that growth in the second half.