Pioneering tech firm Kromek is toasting one of the biggest commercial contracts in the firm’s history, which stands to bring in more than £44m.

The radiation technology company, based in NETPark in Sedgefield, has announced a new contract with an existing customer which will worth at least $58.1m (£44m) over a seven-year period.

The company – which supplies its technology to the medical, security screening and nuclear markets all over the world – will supply its Cadmium Zinc Telluride (CZT) detectors and associated advanced electronics in medical imaging systems.

In a Stock Market announcement, it said its technology provides higher resolution detection capabilities, leading to better patient outcomes.

Kromek will deliver the contract over a seven-year period, starting straight away, and will begin to see revenue from the 2019/2020 fiscal year.

Arnab Basu, CEO of Kromek, said: “We are delighted to have been awarded this multi-year contract from an existing OEM (original equipment manufacturer) customer, which is one of the most significant that we have secured both from a strategic and monetary perspective.

“It is also the first major contract that will be delivered from our new facility in the US that has been purpose built as a world-class production site for medical imaging products.

“Building on the $80m of contracts won over the last three fiscal years, this award strengthens and solidifies our revenue visibility and demonstrates the increasing commercial traction of our CZT detectors in our key target markets of medical imaging and nuclear detection.”

The deal follows the firm’s announcement that it is preparing for ‘serious’ growth over the next two years, after completing a move to a new factory in the US.

The move to the new facility in Pittsburgh has been designed to allow the company to increase production of its medical diagnostic equipment, paving the way for further expansion.

The company is well known for its cutting-edge technology, which can be used to detect cancers or prevent terrorist threats by locating dirty bombs, and commercialisation is expected to ramp up even further, giving the firm the potential to treble, potentially quadruple over the next five to 10 years.