A North-based technology company has signed a multi-million-pound deal with a Chinese firm just days after it issued a profits warning.
Kromek, which supplies radiation detection equipment for the medical, security and nuclear markets, and has its UK arm in Sedgefield, County Durham, has spent the past nine months agreeing the details of the long-term supply agreement.
It has now granted the Chinese manufacturer preferential rights for the supply of Kromek’s cadmium zinc telluride (CZT)-based detection modules in China and Chinese territories. The unnamed Chinese partner is an SME manufacturer of X-ray diagnostics and analysis equipment in China.
The overall value of the contract over the next seven years is said to be in the region of US$159m or nearly £96m.
Advanced cash payments totalling $260,000 (£157,000) are expected from the customer in the current financial year, part of which has already been received.
Kromek’s chief executive Arnab Basu said: “We are pleased to announce significant further traction in the medical imaging space, particularly in a large, high-growth market such as China.
“The signing of this contract represents further endorsement of our offering and highlights the role we can play as global medical imaging capability advances.
“Kromek will continue to explore the opportunities for our technology platform in the medical imaging, nuclear detection and security screening markets.”
This new contract follows hard on the heels of a Kromek profits warning, although at the time Basu said his firm was “stronger than ever”.
In February, Kromek secured £507,000 of new orders to supply specialist parts for technology that can help doctors detect and treat osteoporosis quicker.
The contract takes the total value of contracts secured by the Durham University spin-out to £3.32m over the last year. The business, which employs around 100 staff across offices in Sedgefield, America and Germany, is rapidly growing into a world leader in colour imaging for X-ray.
Since floating on AIM for the first time last year Kromek has been building upon expansion plans within the medical, security and nuclear markets.
It is a Durham University spin-out which employs around 100 people and also has offices in the US.