£11m Sellafield contract win for Midlands manufacturer

Maloney Metalcraft

A Black Country subsidiary of components manufacturer Avingtrans has secured an £11m order to supply additional waste containers to nuclear reprocessing facility Sellafield.

Maloney Metalcraft, based in Aldridge, designs, manufactures and services oil and gas extraction and processing equipment, including process plant for dehydration, sweetening, drying and compression.

The waste containers will be supplied by a division of the business, Stainless Metalcraft, which is part of the main group’s Energy and Medical division.

The new contract is an extension of an initial £47m agreement signed in 2015 for the supply of waste containers for 10 years.

The £11m coming to Metalcraft is expected to be spread equally over the three years to FY21.

Austen Adams, managing director of Metalcraft and Avingtrans’s Energy and Medical division, said: “This is another significant step forward for Metalcraft in this market. Over the last two years, the company has demonstrated its capability to produce these demanding ILW (Intermediate Level Waste) containers.

“The Metalcraft team, working closely with Sellafield, has established a great platform for the provision of these containers for years to come. It is pleasing to see this being recognised with the award of additional production volume.”

Steve McQuillan, CEO of Avingtrans, added: “The board is delighted that Metalcraft has secured such an additional option to this prestigious contract. It is a testament to the expertise and hard work of the Metalcraft team and vindicates the board’s decision to move the Energy and Medical business into new markets.”

However, some of the gloss has been taken off the deal because the parent company revealed in a trading update alongside the contract announcement that business for the year ended May 31 2017, had failed to meet management expectations.

It said revenue was slightly behind management outlook, although it closed the year with adjusted pre-tax profit marginally ahead of internal expectations and net cash of £26.2m.

Looking ahead, the company said it was pleased that its current order book for its Energy and Medical division was strong.