RCS - Avingtrans PLC - Metalcraft signs £9m contract <Origin Href="QuoteRef">AVG.L</Origin>

AvingtransAnnouncement

29/09/2016 07:07

RNS Number : 1398L
Avingtrans PLC
29 September 2016
29 September 2016
Avingtrans plc
("Avingtrans" or the "Group")
Metalcraft signs 9m contract with Chinese equipment manufacturer
Avingtrans (AIM:AVG), which designs, manufactures and supplies critical components, modules and associated services to the energy, medical and industrial sectors, is pleased to announce that Metalcraft has signed an exclusive ten year agreement with Wuhan Zhongke Niujin Magnetic Resonance Technology Co. in Wuhan, China.
Worth an estimated 9m over ten years the agreement will see Metalcraft, part of Avingtrans PLC's energy and medical division, produce high integrity cryostat components forNuclear Magnetic Resonance systems (NMR). 
Component production will initially take place in the UK at Metalcraft's facility in Chatteris, before transitioning manufacturing to Metalcraft's own established facility in Chengdu, China. 
NMR spectroscopy complements other structural and analytical techniques, such as X-ray, crystallography and mass spectrometry and can be used alongside MRI related technology, to provide multidimensional images and spatially resolved information.
Austen Adams, Managing Director of Avingtrans' Energy & Medical division, said: "We are delighted to announce this new global contract.
"With the development of our Chinese manufacturing facility devoted solely to our volume customers' products, we are able to offer our customers a truly global capability to satisfy the logistical and commercial demands.
"We will work closely with our customer to develop a fully value-engineered solution for the components for their NMR systems, ensuring all procedures and processes are firmly established, before transitioning the work to our Chinese site, which will not only bring additional cost efficiency but also bring the manufacturing closer to end customer locations."
Enquiries:
Avingtrans plc
Steve McQuillan, CEO
Stephen King, CFO
0115 949 9020
Numis Securities Limited (Nominated Adviser and Joint Broker)
Tom Ballard (Corporate Broking)
Richard Thomas (Corporate Finance)
020 7260 1000
N+1 Singer (Joint Broker)
Shaun Dobson
Lauren Kettle
020 7496 3000
Newgate (Financial PR)
Adam Lloyd
Ed Treadwell
020 7653 9850
About Avingtrans
Avingtrans plc is engaged in the provision of highly engineered components, systems and services to the energy, medical and traffic management industries worldwide.
Energy and medical, engaged inthe design and manufacture of safety critical equipment for the energy, medical, science and research communities, including oil and gas extraction and processing equipment, nuclear process plant, machined and fabricated pressure and vacuum vessels and components. Also, design and manufacture of fabricated poles and cabinets for roadside safety cameras and rail track signalling.
The strategy of the group, is to "buy and build" in regulated engineering niche markets, where we can see potential consolidation opportunities, which can lead to significantly increased shareholder value over the medium to long term.

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