Thursday, 20 August 2009

CAVE Systems secures major order from the USA

CAVE Systems Logistic Containers – which participated in the largest ever trade mission to the USA from Wales – has just received an order for the first phase of a contract with a potential end value of $5million.

The initial order from the Pennsylvania National Guard is worth $500,000 and forms part of a multi-phased contract delivered over the next twelve to eighteen months which could total $5million. The systems will be used for aircraft maintenance equipment required by troops deployed in Iraq.

CAVE Systems, which is based in Merthyr Tydfil, design, manufacture and supply a range of specialised storage and racking systems that can be supplied ready fitted in containers or retrofitted for use by military and emergency relief organisations, the petro chemical industry and remote mining facilities.

The systems effectively convert containers into mobile workshops or storerooms where all necessary equipment or parts can be safely stored and protected in environmentally controlled conditions but are easily accessible. The systems include glide out shelves, stacking boxes and moving floors and utilise up to 95% of the available space.

Managing Director Allan Grainger also confirmed he is working on three other potential projects in the States which includes discussions with another US State National Guard regarding a potential order of up to 180 containers.

This first direct order from the US military also means CAVE Systems will be allocated a NATO stock number and automatically entered in the NATO Codification system - an on-line 'catalogue' of goods used by the military in more than 50 participating countries.

This opens up opportunities to target new international markets and sell to NATO countries.

Ieuan Wyn Jones, Minister for the Economy and Transport, said the potential end value of the contract was substantial and would support manufacturing in Wales.

"A tremendous amount of work goes into organising trade missions to maximise business opportunities for Welsh companies and it is always good news to hear of companies that have benefited from this support. The mission to the States was an ambitious undertaking that opened new doors for Welsh businesses across a range of sectors and is already delivering results."

Mr Grainger said the trade mission to Washington DC organised by International Business Wales (IBW) - the Assembly Government's overseas trade and investment arm - had provided an unprecedented opportunity to promote their products.

"I made contact with a number of very influential people, was able to follow up several leads and invited key buyers to the Embassy reception. I had the opportunity to show the systems to a number of high ranking Naval and Army officers including an Admiral and a General.

"We simply would not have access to this level of personnel - who are key decision makers - without the support provided by IBW. We are going to Nova Scotia with IBW in September with the aim of promoting our CAVE systems to the Canadian military and revisiting Washington in October to attend the largest and most important defence exhibition in the country.

"There is an extremely long waiting list to attend AUSA - it is the one exhibition that every defence manufacturer in the US wants to attend and I would never have had a chance of attending were it not for IBW who can open doors that we cannot."

Mr Grainger, who has been involved with storage and racking systems for over thirty years, reformed CAVE Systems in January this year when he redesigned, prototyped and patented a comprehensive range of products.

The company, which has operations in the US and Australia, sub-contracts the manufacturing of CAVE systems to a number of companies in Merthyr and West Wales.

If the volume of business increases significantly it could lead to a dedicated manufacturing facility opening in the Valleys to service the CAVE contracts.


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