Pressure Technologies (PRES) , a provider of pressure containment and control products, announced that its wholly-owned subsidiary Chesterfield Special Cylinders (CSC) has won two large contracts in the defence and green energy sectors.
The first contract is with BAE Systems Australia, to supply air pressure vessels to the Royal Australian Navy's Hunter class frigate program. The contract covers the first batch of 3 frigates in the program and will underpin Pressure Technologies' defence order book in the second half of FY24. Initial manufacturing milestones will commence later in 2024, and pressure vessels are expected to be delivered over the next 3 years.
CSC has also been awarded a large contract to supply high-pressure steel cylinder packages to Cheesecake Energy, a UK developer of sustainable thermal and compressed air energy storage systems. The contract is for a pilot project funded by the Department for Energy Security & Net Zero. CSC will supply a total of 48 cylinders with initial manufacturing milestones commencing later this year.
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Pressure Technologies' wholly-owned Chesterfield Special Cylinders has been awarded 2 major contracts, underpinning visibility for FY24 and the subsidiary's robust defence order book. Markets reacted well, sending PRES shares 17.3% higher on Thursday.
For the Australian Navy contract, CSC's pressure vessels will support safety-critical onboard systems. Australia's Hunter class frigate is based on BAE Systems' established Type 26 platform, currently under construction for the UK's Royal Navy. For the CEL contract, cylinder packages supplied by CSC will support surplus energy storage attached to a solar power plant. Both contracts have high ESG value.
Pressure Technologies is also in the process of selling its Precision Machined Components (PMC) division. The process was initiated in December 2023 and the group has now received a number of non-binding offers. Next, PRES will provide selected parties with additional access to PMC and invite final offers for the division, targeting completion of the sale in Q3 2024.
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