Goodwin Plc - Supply Agreement
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(the "Company" or the "Group")
Mechanical Engineering Division - Supply Agreement Announcement
The Board is delighted to announce that a long-term opportunity that has been worked on for a number of months for the supply of capital goods has come to fruition.
Goodwin International Limited has entered into a long-term arrangement to manufacture and machine storage boxes to assist with nuclear waste clean-up.
The production programme is planned to ramp up over a 12 month period, and is anticipated to continue for many years. Goodwin Steel Castings Limited will manufacture castings for the project, with other activities being undertaken at Goodwin International Limited. This is the largest purchase agreement the Group has entered into to date, and is expected to result in significant turnover for the business from the next financial year onwards.
This agreement, along with other business successes over the past two years, will further diversify the Group's revenue streams, and will likely reduce the Groups activity in the oil and gas sector going forward to less than 20%, which historically has accounted for in excess of 40%.
Goodwin International Limited has the operational ability to deliver this highly technical engineering procurement within its existing infrastructure, utilising its wealth of experience in engineering projects with critical end use applications.
Without the Group's investment into Goodwin Steel Castings Limited over the past three years, enabling it to increase the size and weight of castings it manufactures, it would not be possible to execute this scale of work.