Pressure Technologies, the Sheffield-based, hi-tech cylinder manufacturer, is planning a move into composites after taking a major stake in a US company.
AIM listed Pressure Technologies is providing Texas-based GTM Manufacturing with a $4 million loan, $500,000 of which will be converted into a 40 per cent stake in the US company on January 1.
Pressure Technologies is also getting the option to acquire a further 40 per cent of GTM, which makes lightweight, high pressure cylinders that comprise a steel liner wrapped in high strength glass fibre.
GTM’s cylinders can be mounted inside a standard container to create a “gas transportation module” that maximises the amount of gas that can be transported by lorries, reducing transportation costs.
The modules are already used in the US to transport compressed natural gas, methane, hydrogen, helium and argon.
Pressure Technologies chairman, Alan Wilson, says the Meadowhall-based firm is taking the stake in GTM as part of its strategy to complement organic growth with acquisitions that enhance and broaden the company’s operations.
Mr Wilson said: “We believe that the agreement reached with GTM affords Pressure Technologies an excellent means by which to participate in the growth in the market for the transportation of gases across a wide number of sectors, particularly oil and gas where we already have considerable experience.
“The Investment allows the company to join the expertise of the design and manufacture of high pressure gas cylinders in our subsidiary Chesterfield Special Cylinders, with GTM’s expertise in the production of light-weight composite cylinders and to develop and expand GTM’s product range.