£4m deal to power robots in smart warehouses

Redditch manufacturer Solid State has won orders worth £4.3m to supply power units for autonomous robots operating in cold climate conditions.

The AIM-listed business was commissioned to design and supply the bespoke power units for smart warehouses based on its knowledge of harsh environment applications for battery power solutions developed over 20 years. It has not named the end customer.

The contract win is good news for the business which was forced to issue a profits warning in April on the back of poor performance in North America. Its share price fell 25% to a five-year low after it revealed it was being hit by the greater emphasis being put on domestic suppliers in the USA

Gary Marsh, chief executive at Solid State, said: “This contract establishes Solid State as a leading innovator in the fast-evolving distribution and fulfilment technology market.

“Solid State’s in-depth knowledge of battery chemistries and harsh environment characteristics give it a unique position for partnering with customers as an embedded solutions developer. Our intention is to develop a longer term collaboration with this customer.”

The smart warehousing model uses autonomous robots, which allows a round-the-clock fulfilment function to be maintained, shortening delivery cycles and reducing cost in the retail supply chain.

Deliveries of the power units are expected to start later this year with the contract delivering additional recurring revenues through the supply of replacement cells as part of a support and maintenance agreement.

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