Conclusion of a framework contract for the supply of gas meters to the United Kingdom market
The Executive Board of Apator SA announces that subsidiary of Apator Metrix SA and George Wilson Industries Ltd. with headquarters in Great Britain (subsidiary of Apator Metrix SA) concluded with Flonidan A/S with headquarters in Denmark ("Ordering Party") on 4th August 2020 framework contract on deliveries of gas meters to UK market in 2020-2025. Estimated total value of the contract is about EUR 52.1 million (that is about PLN 230.3 million according to average exchange rate of NBP dated 3rd August 2020, 1 EUR= PLN 4.4168).
The above contract was concluded in order to clarify the terms and conditions of cooperation with the Ordering Party in the field of gas meter supplies to the British market, which have been carried out since 2016 on the basis of current orders. The Ordering Party - Flonidan A/S is the long-term partner of Apator Metrix SA, with whom the Company provides the smart gas meters to the markets of Netherlands, Belgium and Luxembourg under separate agreements. The Executive Board also informed about it in earlier current reports (No 7/2016, No 2/2012).
The contract provides for gas meter supplies to be continued in subsequent years on the basis of orders placed by the Ordering Party according to its needs. The Contract does not specify the minimum level of orders to which the Ordering Party is obliged but under the contract Apator Metrix SA and George Wilson Industries Ltd. undertook to maintain the manufacturing capacity allowing to deliver at least 30.000 pieces of gas meters per month with the value about EUR 0.9 million.
The remaining provisions of the contract in terms of supplies, contractual penalties, mutual liabilities and obligations do not deviate from the market conditions commonly applied in such contracts.
CONTACT ON INVESTOR RELATIONS
Frequently asked questions and answers.