LONDON (Alliance News) - Corac Group PLC on Friday said it has signed a ten-year commercial deal with a subsidiary of FTSE 250-listed boiler and pipeline control valves manufacturer Spirax-Sarco Engineering PLC.
Corac said the deal will cover packaged steam products containing its micro-turbines and compressors. Corac will licence its patented micro-turbines and compressors to Spirax, with initial income to be derived from consultancy services to establish a manufacturing supply chain for the products.
Once production is then established, Corac will get royalty income on for sales of products using its technology.
"We are pleased to have evolved our working relationship with Spirax that will take our turbo machines into the next stage of their commercial use. Today's announcement is culmination of a two-year development programme, which began with our design team exploring adjacent possibilities for Corac's gas compression technologies beyond their original gas production applications," said Corac Chief Executive Phil Cartmell.
Corac shares were up 5.9% to 4.4999 pence on Friday morning, one of the best performers in the AIM All-Share.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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