Technology firm Kromek secures $2.7 million contract expansion

A technology firm known for helping thwart terror attacks has secured a contract expansion expected to be worth $2.7 million.

Kromek has picked up the order increase as part of a five-year security screening market contract, which was originally awarded in early 2017.

The company, based at NETPark, in Sedgefield, County Durham, says the expansion has increased the total value of the contract to a minimum of $5.8 million over the period, with its additional $2.7 million expected to be recognised over the next 24 months.

Kromek began delivery under the contract in 2017, with orders as expected for the first two years.

However, for years three and four, the business says its customer has increased its order quantities, resulting in the contract now having a minimum value of $5.8 million, compared with the original $3.1 million minimum.

Speaking about the expansion, Arnab Basu, Kromek chief executive, said: “This was our first long-term contract in the security screening market, and we are pleased to see the value now increase by almost 90 per cent.

“This latest order expansion is an endorsement of the strength of our detection solution and credentials as a high-quality product supplier.

“This customer, like many others, is seeing increasing market adoption of its next-generation equipment that incorporates our detection solutions, and so we will continue to benefit from this growing momentum.”

Kromek is known for supplying detection technology for the medical, security screening and nuclear markets, with its agreements including a deal to send thousands of radiation detectors to an agency of the US Department of Defense to help identify threats, including ‘dirty bombs’.

Mr Basu added: “We are gaining traction across all our markets as our customers continue to recognise the value that our technology adds to their products.”