FREYR 3-year supply agreement
Mpac Group has announced that it has signed a framework agreement with FREYR Battery, for an initial three-year period, for the exclusive supply of casting and unit cell assembly equipment to FREYR’s battery cell production line at FREYR’s Giga Arctic plant in Mo I Rana, Norway. This is an important step towards the commercialisation at scale of Mpac’s technology at the start of FREYR Battery’s major investment in next-generation clean energy provision, and a clear validation of Mpac’s commitment to this new market vertical.As indicated by the 3-year agreement announced today, Mpac will seek long-term partnerships in this rapidly-growing segment of the clean energy sector, using its expertise to add production (and battery-size) scale, and with this achieve cost reductions for its clients.
At this stage our outlook to FY24 remains unchanged, but we are sensitive to updates in this rapidly-developing addition to Mpacs core markets. Our fair value for Mpac is 485p/share, indicative of a FY24 EV/EBITDA multiple of 6.7x.
Mpac Group is focused on its Packaging Machinery business, Mpac Langen, which designs, precision engineers and manufactures packaging solutions, machinery and high specification automation, secondary packaging equipment and end-of-line robotics and at-line instrumentation and testing solutions as well as providing solutions including the design and integration of packaging systems.
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