Avingtrans plc's subsidiary Stainless Metalcraft (Chatteris) Ltd, part of the group's energy and medical division, has secured an additional £11m contract option with Sellafield.
The contract extension for an additional quantity of containers builds on Metalcraft's May 2015 contract for the supply of waste containers over 10 years, worth up to £47m. From the initial contract award in 2015, Metalcraft has cleared the prototype development phase of the contract and established a dedicated manufacturing facility, which is now engaged in pre-production trials.
Austen Adams, managing director of Metalcraft and Avingtrans plc's energy and medical division, said: “This is another significant step forward for Metalcraft in this market. Over the last two years, the company has demonstrated its capability to produce these demanding ILW (Intermediate Level Waste) containers. The Metalcraft team, working closely with Sellafield, has established a great platform for the provision of these containers for years to come. It is pleasing to see this being recognised with the award of additional production volume.”
Steve McQuillan, CEO of Avingtrans plc, added: “The Board is delighted that Metalcraft has secured such an additional option to this prestigious contract. It is a testament to the expertise and hard work of the Metalcraft team and vindicates the Board's decision to move the Energy and Medical business into new markets. Metalcraft is a leading player in its chosen markets and contracts such as this underline our status as a world class business.”
The majority of the revenue from the contract is expected to be spread equally over the three years to FY21.