Metalcraft signs 9 million pounds contract with Chinese equipment manufacturer
OREANDA-NEWS. 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 for Nuclear 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."
Avingtrans plc is engaged in the provision of highly engineered components, systems and services to the energy, medical and traffic management industries worldwide.