Carclo in Wakefield signs medical diagnostic devices framework

Provider of engineered services for the medical, optical, electronics and aerospace industries Carclo has signed a framework agreement with a major global original equipment manufacturer for the manufacture of complex medical diagnostic disposable devices.
By Ismail Mulla
Published 23rd Dec 2020, 08:25 BST
Updated 23rd Dec 2020, 08:26 BST
Carclo has delivered a trading update for the City.Carclo has delivered a trading update for the City.
Carclo has delivered a trading update for the City.

The framework agreement enables the award of production contracts to Carclo Technical Plastics (CTP) for the manufacture of a range of products over the next ten years from a number of its facilities.

Tooling contracts related to certain of these products have already been awarded to CTP and are expected to make a modest contribution to the Wakefield-based group's performance in the year to March 31, 2021.

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Alongside tooling production, significant capital investment will be made in the current year by the Group to establish sufficient capacity for the anticipated demand.

Production contracts remain subject to a number of conditions including product acceptance and, provided these are met, are expected to be awarded in the first half of the year to March 31, 2022.

After an initial ramp-up phase, CTP expects to reach full production volumes in the second half of the 2022 financial.

At full rate production these contracts are expected to deliver incremental annual revenues of between £10m and £15m for the remainder of the contract life.

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Rob Stutzman, CEO of CTP, said: "We are delighted to have secured this Framework Agreement and look forward to working with our customer over the next decade.

"This is a significant step forward in the development of CTP's strategy and is testament to our strengths in the medical diagnostic market."

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Related topics:Wakefield