TechPrecision Gets $115M Contract For Cancer Treatment Parts
TechPrecision Corp. of Pennsylvania announced that it has signed a five-year deal for more than $115 million to produce parts of cancer treatment equipment. Its Wesminster subsidiary Ranor Inc. will be part of the production, along with Wuxi Critical Mechanical Components Co. Ltd. in China.
TechPrecision, which manufactures large-scale, metal-fabricated and machined precision components and equipment, will make assemblies for the U.S. Food and Drug Administration-approved proton beam. Proton beam therapy helps physicians deliver high doses of radiation to tumors, while sparing healthy tissue.
The company did not disclose who the deal is with, but said the produced equipment will be used in the United States and Asia. PrecisionTech said it expects to begin shipping assemblies during the first quarter of fiscal year 2014, continuing through 2018. The company said it's already shipped five assemblies under a previous agreement.
"As this agreement goes forward, cancer patients are the big winners as it signals a new, more cost-effective and less-invasive procedure that is now an available option to the medical community," said TechPrecision CEO James Molinaro.
He cited further diversification of TechPrecision's revenue as an additional benefit of the deal.
"Clearly, we are no longer reliant on the alternative energy sector, and medical shipments will become an increasingly important contributor to our top- and bottom-line results as this agreement transitions to purchase orders," he said.
Separately, the company said a polysilicon customer has requested a change regarding the chambers used in making the material – used in electronics – that the Ranor division is producing for it. The adjustment will result in about $470,000 of new, incremental revenue, TechPrecision said. The changes will also affect production as the units, which were scheduled to be completed in the period ending Dec. 31, 2012, are now expected to be finished in the fourth fiscal quarter of 2013, which ends March 31.
WBJ Web Partners
Most Recent
Most Recent
0 Comments