(Alliance News) - UniVision Engineering Ltd on Wednesday said it has signed a sub-contract agreement to deliver its existing contractual obligations.
The agreement was signed with China Railway Engineering Hong Kong Ltd and China Railway Wuhan Electrification Engineering Group Ltd joint venture. The latter is a subsidiary of China Railway Group Ltd, a construction firm.
Under the deal, China Railway Wuhan will be able to devote significant manpower, finance and other resources to help UniVision to meet its existing contractual obligations in a more efficient and cost-effective manner.
The AIM-listed surveillance systems provider said it expects that the effect of working with the China Railway Wuhan and China Railway Engineering will create a positive impact on its contractual gross margins.
"We believe this strategic partnership will bring significant advantages to UniVision in that we can utilise China Railway Wuhan's sourcing capability and financial strength with both current and other potential customers," said UniVision Chair Stephen Koo.
"Whilst this is the first time we have worked with China Railway Group, we are aware that, as one of the world's largest construction and engineering companies, other opportunities may present themselves in the future," added Koo.
UniVision shares were trading flat in London on Wednesday at 2.00 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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