Tadir-Gan (Precision Products) Ltd. (TASE: TDGN) shares jumped 20% today on heavy turnover after the company reported an order from GM Powertrain Europe.
The framework agreement is worth an expected €2.5 million per year for six years, giving a total of €15 million.
The agreement is for the production of 140,000 aluminum oil pans per year, for 1.6 liter engines. The buyer, a car engine and transmissions manufacturer, intends to install the pans in several models beginning in 2013.
Tadir-Gan can also receive a one-time payment of around €700,000 for set-up costs related to the project. Regular production is slated to beginning 2012, with sales beginning in 2013.
The parts will be used on a production line in Hungary.
The framework agreement does not obligate the buyer to buy the full amount of the products, but refers to an estimated order level.
Published by Globes [online], Israel business news - www.globes-online.com - on June 24, 2009
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