Superconductor energy technology company Zenergy Power plc (AIM:ZIN.L) has said it was able to secure a contract to sell one of its superconductor-based machines, a low energy/high productivity induction heater, to the Sapa Group, the world’s largest aluminium profiles producer.
The order from Sapa’s subsidiary Sapa Profili Srl was landed in conjunction with Bültmann GmbH, Zenergy’s manufacturing and sales partner.
The device, also known as magnetic billet heater, will be used by Sapa for its aluminium plant in Bolzano, Italy where it will be installed in place of the conventional gas heating equipment that had been in use previously.
The heater will allow the plant to expand the range of produced aluminium products with its ability to heat several types of aluminium alloys at the same plant, providing the versatility the plant couldn’t get from the previous heating equipment. Sapa hopes this will enhance the plant’s operational efficiency and give it more commercial appeal. It will also widen the market for the business, allowing it to cover a wider range of customers.
Sapa has been working closely with Zenergy Power to qualify the capabilities of the machine, which enabled it to conclude that exploiting the heater’s capabilities will lead to an increase in the productivity levels at the Bolzano plant.
Zenergy said the sale confirmed that the market realized the economic advantages of the superconducting technology over conventional heating equipment, which matters even more amid the increasing competition in the market.
“Previous sales of our high performance equipment have clearly proven the economic attractiveness of our highly efficient technology in high throughput operating conditions. In equal measure, this latest sale clearly demonstrates the commercial advantages that can be gained from superconductor technology in circumstances of increased global competition and weakened demand,” said CEO of Zenergy Power Jens Mueller.
Zenergy's shares have gone up over 7 percent today. The Board expressed confidence the group would meet the forecasts for revenue and units sold in the full year 2009.