Corac Group wins contract to supply equipment to submarines

UK engineering group Corac Group has secured a contract extension to supply air purification equipment to an overseas submarine programme.

The company, which serves oil and gas, defence and industrial markets, said its subsidiary Atmosphere Control International (ACI) will make the delivery during the fourth quarter of 2013.

The order is worth over £0.7m and will increase ACI's revenue visibility for the year.

The contract, which furthers ACI's participation in a long-established programme, reflects demand in the global submarine market. Recent reports indicate that more than 80 boats will be launched in the Asia Pacific region over the next 10 years.

Phil Cartmell, Chairman of Corac said: "This order represents a good start to the year for ACI, and confirms our confidence that the combined current order book places Corac in a good position.

"Long term supply relationships are a key feature of the ACI business and this order demonstrates how the company can benefit from building business in expanding markets. Encouraging signs from global programmes offer ACI an increasing pipeline of opportunities for 2013 and beyond."

Shares climbed 2.36% to 16.25p at 8:45 Thursday.

RD