Flowgroup signs enhanced deal with manufacturing partner

THE Cheshire comapny which has developed a new energy efficient domestic boiler which generates electricity while also heating homes, has announced an enhanced deal with its manufacturing partner.

Flowgroup said its expanded agreement with US-based Jabil Circuit would mean that 500,000 of its Flow boilers will be produced, up from the 390,000 that were to have been made under the terms of the previous arrangement.

In addition, Flowgroup and Jabil have agreed to collaborate on future Flow mCHP product developments. As well as this closer collaboration around product development, the new agreement also includes an extension of the drawdown period of the previously announced loan facility, which now expires on December 31 2015, and improvements to the credit terms for a period of time to support the initial launch of the Flow boiler in the UK.  

Tony Stiff, chief executive of Flowgroup, said: “As our two companies have worked together in the run up to the recent initiation of production of the Flow boiler, it has become clear that a closer relationship and greater collaboration could bring real benefits.

“It will allow Flowgroup to accelerate current product development, which potentially allows us to grow our boiler business more quickly, both in the UK and abroad, and the reduction of manufacturing costs. As with our original deal with Jabil, this represents an excellent opportunity for the company.”

David Kipling, senior director corporate investment at Jabil, added:”We are pleased that the relationship with Flowgroup continues to develop and we remain enthusiastic about Flowgroup’s products and its business model.

“Jabil looks forward to continuing to provide support to Flowgroup in the pursuit of its business plans and production requirements.”

Jabil’s manufacturing plant in Scotland is producing the Flow boilers.