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Share price 193p – 197p (market cap £36m after share buy-back)
Net current asset value: £32.7m – £34.5m Cash £32m
Vessels – based in Charterris, Cambridgeshire
For 100 years at the heart of Metalcraft has been precision engineered vessels. These can be pressure, vacuum or cryogenic vessels, e.g. helium containment vessels which operate at 4 kelvin; pressure hulls for submersibles; diving bells.
“In excess of 40,000 pressure vessels, vacuum vessels and cryogenic vessels have been manufactured by Metalcraft to date and we believe that Metalcraft are the premier manufacturer of medium to large pressure vessels, vacuum vessels and cryogenic vessels in Europe, if not the world.” (Metalcraft website)
It has also supplied fluid tanks, heat exchangers and crucibles for heating nuclear waste at 1,000c to lock it within glass.
Medical applications
Metalcraft produced two vacuum and helium containment vessel sets for the first MRI scanners manufactured for clinical use 40 years ago.
Since then it has manufactured 50% of the worldwide supply of whole body MRI cryostat vessel parts, and magnet formers. “We enjoy a global market leading position in this particular supply niche.” (2014 Report)
The cryogenic vessels are also used in nuclear magnetic resonance and proton therapy treatment.
Medical technology generally, and MRI specifically, is likely to grow fast due to aging populations and emerging markets growth, especially in China.
Siemens and China
Three years ago Avingtrans set up manufacturing plants in China. The principles motivations:
1.Siemens, a manufacturer of MRI scanners and a major customer, produce in China.
2.Lower costs.
3.The potential to supply the 15 Chinese MRI scanner makers
4.Selling into wider Asian markets as they develop
So far, Siemens, and therefore Metalcraft, has struggled with worldwide competition from the other two major players in the MRI market, GE and Phillips.
However, interest from the 15 indigenous manufacturers encourage the managers of Avingtrans to think that there is a significant future market in China. Also, they might supply GE there – talks have begun.
Bruker contract
This year agreement was………..To read the rest of this article, and more like it, subscribe to my premium newsletter Deep Value Shares – click here http://newsletters.advfn.com/deepvalueshares/subscribe-1
