Cylinder firm takes up stake in US outfit

Pressure Technologies, the hi-tech cylinder manufacturer, is planning a move into composites after taking a major stake in a US company.

AIM listed Pressure Technologies is providing Texas-based GTM Manufacturing with a $4 million loan, $500,000 of which will be converted into a 40 per cent stake in the US company.

Pressure Technologies also has the option to acquire a further 40 per cent of GTM, which makes lightweight, high pressure cylinders.

Chairman Alan Wilson says the Meadowhall firm is taking the stake in GTM to complement organic growth with acquisitions that enhance and broaden the company’s operations.

He said: “We believe that the agreement reached with GTM affords Pressure Technologies an excellent means by which to participate in the growth in the market for the transportation of gases across a wide number of sectors, particularly oil and gas where we already have considerable experience.