© mariusz-szachowski-dreamstime.com Electronics Production | December 04, 2013
Flowgroup in manufacturing agreement with Jabil
Flowgroup has entered into an exclusive manufacturing services agreement with Jabil Circuit Inc to manufacture up to 390'000 microCHP Flow boilers in the UK.
Under the agreement, Jabil will manufacture up to 390'000 Flow boilers, funding production working capital. Jabil will assist Flowgroup with the ongoing design of an economical and effective supply chain as well as logistics and other support for international expansion in due course. Flowgroup also has the option, conditional on admission, to draw down a loan of up to GBP 2.5m until 31 December 2014, which is secured on the group's Flow boiler intellectual property on an insolvency event, with a coupon of 9.5% per annum. Repayments would commence on 1 October 2015. The directors do not envisage drawing down on the loan.