Last checked at 23 Dec 2020 07:00
23 December 2020
Framework Agreement
Carclo plc, a global provider of value-adding engineered solutions for the medical, optical, electronics and aerospace industries, announces that its Carclo Technical Plastics ("CTP") division has signed a framework agreement with a major global OEM for the manufacture of complex medical diagnostic disposable devices (the "Framework Agreement").
The Framework Agreement enables the award of production contracts to CTP for the manufacture of a range of products over the next ten years from a number of its facilities. Tooling contracts related to certain of these products have already been awarded to CTP and are expected to make a modest contribution to Group performance in the year to 31 March 2021. Alongside tooling production, significant capital investment will be made in the current year by the Group to establish sufficient capacity for the anticipated demand.
Production contracts remain subject to a number of conditions including product acceptance and, provided these are met, are expected to be awarded in the first half of the year to 31 March 2022 (FY22). After an initial ramp-up phase, CTP expects to reach full production volumes in the second half of FY22. At full rate production these contracts are expected to deliver incremental annual revenues of between £10m and £15m for the remainder of the contract life.
Rob Stutzman, CEO of CTP, commented: "We are delighted to have secured this Framework Agreement and look forward to working with our customer over the next decade. This is a significant step forward in the development of CTP's strategy and is testament to our strengths in the medical diagnostic market."
About Carclo plc
Carclo plc is a public company whose shares are quoted on the Main Market of the London Stock Exchange. The Group is a global provider of value-adding engineered solutions for the medical, optical and aerospace industries.
Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014) ("MAR") prior to its release as part of this announcement and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.
LEI: 21380078MEM399JPI956
Enquiries:
Carclo plc 01924 268040
Nick Sanders - Executive Chairman
FTI Consulting 020 3727 1340
Nick Hasell / Susanne Yule