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(Alliance News) - Chamberlin PLC on Friday said it has secured contracts to supply flap valves and iron castings, which will be manufactured in Scunthorpe and Walsall foundries, respectively.
Chamberlin shares were trading 92% higher in London on Friday morning at 41.25 pence each.
The engineering firm said flap valves - produced by Chamberlin's subsidiary Russell Ductile Castings Ltd - will be used for the construction of the Thames Tideway Tunnel.
"In securing this very material order it is pleasing to note that Russell Ductile Castings is one of only a few foundries based in the UK capable of producing the cross section of complex castings required for this project," said Chamberlin Chief Executive Kevin Nolan.
Production of the valves will commence in the current financial year, Chamberlin noted, although the full benefit of the order will be seen through 2020 and beyond.
The company explained that the initial flap valves order is for GBP900,000 and represents about 50% of the total value of the contract, worth up to GBP1.8 million.
Turning to iron castings order, Chamberlin said production has now commenced and is expected to reach GBP400,000 per annum. The iron castings will be supplied to Roadcraft Safety Products.
"It is particularly pleasing to be awarded this new business with a new customer outside of the automotive sector in order to reduce our reliance on the production of bearing housings to the automotive sector, upon which our reputation has been built," added Nolan.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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