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Shares of CUI Global were down as the company announced a collaboration with Mitsubishi Electric to enhance biomethane production lines.
CUI Global (NASDAQ:CUI) announced on Tuesday (November 6) that it has entered into a collaboration with Mitsubishi Electric (TYO:6503) to enhance biomethane product lines with Mitsubishi automation control platforms.
The company said that the technical collaboration was done through its energy division, Orbital Gas Systems, and will also enhance Orbital’s telemetry unit.
CUI said that Mitsubishi Electric will provide the hardware product platform and technical support while Orbital sharing the system design and implementation expertise.
“Our partnership enables both companies to pool complimentary knowledge, expertise and technologies to create better solutions for our customers on a befittingly stable platform,” Paul White, president of Orbital, said in the release. “There is significant benefit in the product compatibility of the Mitsubishi Electric platform, meaning we can continue using our proprietary developed software as the hardware product develops.”
While both companies are set to partner in marketing and sale of the product lines, the services will benefit gas transmission and gas distribution networks in UK with additional collaboration tipped to be signed for Europe and North America.
“We look forward to working together with Orbital to meet the challenging requirements of a market embarking upon the process of digitalisation, which will improve efficiency, lower maintenance burdens and increase availability throughout the U.K.’s national infrastructure,” Roger Payne, division director at Mitsubishi Electric, said in the release.
Orbital’s collaboration with Mitsubishi comes closely on the heels of the company advancing its business development efforts in China and also in the UK.
Orbital announced on October 30 that it will provide its distribution partner, SAMSON, with technical skills and knowledge to push its GasPTi to natural gas transmission companies based in China.
The company quoted a report from the International Energy Agency (IEA) on how China produced 112 billion cubic meters of natural gas while also importing 52 billion cubic meters. Orbital’s expansion in China comes at a time when the country is looking to shift its energy mix towards natural gas.
Further, in mid-October Orbital announced that it has secured third purchase order from a European industrial company for the production of BioMethane-to-grid terminal. The company said that it was third of the three purchase orders that was initially awarded in May 2018 and is worth over US$1.5 million. It was noted that the company has 27 active, outstanding bids for such projects across the UK.
Following the announcement, shares of CUI Global were down 8.15 percent to close the trading session on Tuesday at US$1.69. The stock has triggered the short sale-related circuit breaker on Tuesday afternoon. In the last month, shares of the company have lost 19.52 percent while losing 38.55 percent year-to-date. The stock has a “Sell” ranking on TradingView with 15 verticals against, nine in neutral and two in favor.
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Securities Disclosure: I, Bala Yogesh, hold no direct investment interest in any company mentioned in this article.
