Wuxi Critical Mechanical Components Co., Ltd is based, says TechPrecision, on the significant growth in demand for solar and nuclear energy components in Asia, and especially China.
The unnamed customer reportedly provided TechPrecision with a conditional $2.9 million in initial purchase orders for components: this is expected to include materials transferred from Ranor to Wuxi Critical Mechanical Components Co., Ltd., to be machined in China and delivered to the customer.
TechPrecision says that it anticipates a significant increase in business with multiple customers as a result of this arrangement. The conditional order is said to be based upon Wuxi Critical Mechanical Components Co., Ltd. producing an initial successful product by the end of the year.
"Demand for solar, nuclear and industrial components is growing globally, but this demand is increasing most in Asia and especially China," said Mr. James Molinaro, CEO of TechPrecision Corporation. "Already, 80 percent of polysilicon panels and many nuclear reactors are scheduled to be built in China, and our customers indicated interest in expanding business with TechPrecision, if we could support them locally in Asia.
We moved quickly to meet this demand, resulting in an immediate purchase order and the expectation of a larger relationship in the coming months. Toward this end, we are discussing the possibility of creating additional cooperative agreements involving the manufacturer of high-precision machined metal fabrications in China."
"In addition, we can leverage the expertise at our Ranor facility to address future demands within Asia," Mr. Molinaro continued. "By adding capability to the TechPrecision organization, we believe we can exploit synergies both in the U.S. and China to grow the business of both subsidiaries. We see this as a win-win scenario, both for TechPrecision and its customers and we are excited to add this second platform as we grow our business."