Subsea engineering firm Tekmar has secured a “significant” contract to supply components for a Japanese offshore wind farm.
The deal will see the Darlington-based business provide its Cable Protection Systems (CPS) and Cable Hang-Off Clamps to the wind farm in 2023.
It follows recent news that Tekmar is seeking a sale to provide cash for an investment strategy designed to turn around its loss-making position.
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In an update to investors, Alasdair MacDonald, CEO of Tekmar Group, said: "We are pleased to be announcing this significant contract award, which represents an important strategic milestone as we extend our geographical reach into the Japanese offshore wind market.
“This contract builds on the encouraging contract momentum we have established, highlighted by the record order book of £20.1m we announced with our first half results and demonstrates how our CPS solution offers superior technical capability and value in de-risking complex subsea engineering projects for the market.
“We also see this recent contract momentum as an important indicator that the level of market activity is improving and are also pleased to update that we had a strong cash collection towards the end of our June quarter.
“This supports our confidence in the stability of the business as the market environment improves. The company has launched a formal sale process and further communication with shareholders on this process will be made as and when appropriate to do so. In the meantime, it is business as usual for Tekmar as we remain focused on delivering on our plans and we look forward to keeping shareholders updated with our continued progress."
Tekmar formally put itself up for sale last month, saying it did not have cash available to turn around a loss-making position.
