Micron Solutions announced that its subsidiary Micron Products has entered a multi-year manufacturing agreement with its largest customer to supply patented components and assemblies to the company.
Micron will be the exclusive manufacturer of injection molded products through the agreement. The terms and conditions of the agreement also include product quality, product changes, deliveries and pricing pursuant which says Micron is expected to exclusively manufacture and sell products and tooling to its customer against purchase orders
The agreement has also laid out initial order quantities, volume-based pricing and rebates and tolling forecasts. So far, Micron has received $3.4 million in purchase orders for the first year of production with $3 million to $4 million in expected shipments for the following years on the agreement.
“After more than 5 years of close collaboration, we are pleased to be a part of our customer’s success in developing and selling these components. Micron has developed a number of highly automated and accurate manufacturing cells which can produce millions of parts per day,” Salvatore Emma, Micron’s president and CEO, said in a press release. “Micron and its customer share in the automation investment to keep costs competitive while improving quality and delivery reliability.”