AVG Avingtrans Plc

TIDMAVG

Avingtrans PLC

29 September 2016

29 September 2016

Avingtrans plc

("Avingtrans" or the "Group")

Metalcraft signs GBP9m 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 GBP9m 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."

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 in the 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.

This information is provided by RNS

The company news service from the London Stock Exchange

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September 29, 2016 02:01 ET (06:01 GMT)

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