Shiloh Industries, Inc.
) entered into a manufacturing agreement with London-based
Velocys, plc. The agreement makes Shiloh the preferred fabricator
of microchannel cores and future products being explored.
These cores form part of the company's modular reactors that
help the small scale distributed gas-to-liquid systems. These
systems convert unconventional, remote and problem gas into
valuable liquid fuels.
Shiloh will produce the cores with the help of Velocys'
advanced laser welding technology. Velocys addresses the smaller
gas-to-liquid solutions, which caters to an untapped market of up
to $25 million.
Shiloh will carry out the above production through its
Innovation Drive Plant in Valley City, Ohio. In return, Shiloh
will acquire roughly 600,000 shares of Velocys. The initiative
complements the company's strategy of expanding its capabilities
and diversifying the customer base.
Recently, Shiloh reported improved year-over-year results for
the first quarter of fiscal 2014 (ended Jan 31, 2014). Earnings
per share rose 93.3% to 29 cents and revenues improved 26.2% to
$183.5 million. The improved results were due to increased
productivity from the North American car and light truck
industry. The company has been growing through product launches
as well as inorganically.
Shiloh Industries is a full service manufacturer of blanks and
stamped components for the automotive and light truck, heavy
truck and other industrial markets.
With a market capitalization of $299.5 million, Shiloh
currently carries a Zacks Rank #3 (Hold). Some better-ranked
stocks in the industry include
AK Steel Holding Corporation
CaesarStone Sdot-Yam Ltd.
United States Steel Corp.
). While AK Steel Holding and CaesarStone Sdot-Yam hold a Zacks
Rank #1 (Strong Buy), United States Steel sports a Zacks Rank #2
AK STEEL HLDG (AKS): Free Stock Analysis
CAESAR STONE SD (CSTE): Free Stock Analysis
SHILOH INDS INC (SHLO): Get Free Report
UTD STATES STL (X): Free Stock Analysis
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