Avingtrans (AVG) said its companies Stainless Metalcraft, Hayward Tyler Fluid Handling ("HTFH") and Hayward Tyler ("HT") have secured a £4.4m contract with Doosan Babcock.
The £4.4 million contract, which will be executed over a period of two years, will see Avingtrans’ companies supply remote maintenance pumps for use by a leading UK nuclear energy company as part of the Programme and Project Partners ("PPP") approach.
The three companies will work together as part of a goods supply agreement to Doosan Babcock, one of PPP's partners delivering the Sellafield site's decommissioning programme.
The Group, which supplies critical components, modules, systems and associated services to the energy, medical and industrial sectors, said the PPP model is changing the way major projects are delivered at Sellafield and creating a legacy through long-term partnerships.
It said the new approach is set up to support faster, more effective project delivery, design and construction supply chain stability, greater workforce flexibility, and local economic benefit.
The Contract will see teams at Metalcraft (Cambridgeshire), HTFH (East Kilbride) and HT (Luton) manufacture remote maintenance pumps, which will form a critical part of the SIXEP Continuity Plant ("SCP") which cleans Sellafield's liquid effluents before discharge to the sea.
Avingtrans said today’s news marks a further strengthening of the company’s position in the nuclear energy industry, following Metalcraft's enhanced contract with Sellafield to supply 3m3 stainless steel boxes for the storage of intermediate level waste at its Pile Fuel Cladding and Magnox Swarf Silos, and Hayward Tyler's licence agreement with Ruhrpumpen to supply safety-related products, maintenance and repair services to nuclear power plants worldwide.
Commenting on the deal, Austen Adams, Divisional Managing Director of Avingtrans Process Solutions and Rotating Equipment division, said: "We're delighted to have secured this contract and to be working in conjunction with our sister company in Avingtrans' Engineered Pumps and Motors division, Hayward Tyler, to deliver best value for our customer.”
He added, "All three businesses have a strong track record delivering performance-critical solutions to the nuclear industry and we're confident that by combining expertise and resources we will be able to offer a high-quality, high-value solution."
Dennis Healy, MD of Hayward Tyler's UK Operations, commented, "By working with our colleagues at Metalcraft and HTFH, we will be bringing together some of the leading names in the nuclear engineering supply chain, maximising value and service for our customer."
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In a recent update for the year to 31 May 2021, the company said it expects results for the year to be ‘at least in line with market expectations’ following a strong trading performance. As a result, the Group told investors last week that it will reinstate its progressive dividend policy.
As outlined in its half-year results for the six months ended 30 November 2020 published in February 2021, the Board of Avingtrans has confirmed the reinstatement of the Company’s progressive dividend policy, following the dividend suspension last year due to Covid-19.
As a result, the Company said the dividend will be recommended for the year ended 31 May 2021, which will also include an amount to reflect the non-payment of an interim dividend.
Avingtrans will publish its results for the year ended 31 May 2021 on 29 September 2021.
In a recent Vox Q&A, Steve McQuillan, CEO, and Stephen King, CFO, discuss Avingtrans’ financial and operational progress during the 12 month period to 31 May 2021.
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