ENERGY technology specialist Flowgroup has extended its manufacturing deal with Jabil Circuit in Livingston, increasing production volume of the world's first affordable electricity-generating boiler.

The move "further reinforces the strength of the partnership" between the two companies, analysts at Investec said in response to the news.

Flowgroup's Flow boiler generates economical, low-carbon electricity as well as providing home and water heating. Broadening the deal means the number of these devices to be manufactured under the agreement jumps from 390,000 to 500,000.

Flowgroup group chief executive Tony Stiff said he was "delighted" with the increase.

"As our two companies have worked together in the run-up to the recent initiation of production of the Flow boiler, it has become clear that a closer relationship and greater collaboration could bring real benefits," he said.

Also included in the broadened deal is the two firms agreeing to collaborate on Flow micro combined head and power product developments, plus extending the drawdown period of the loan facility to end-December, and time-specific improvements of the credit terms to support the initial launch of the Flow boiler in the UK.

Analyst Thomas Rands of Investec wrote in a note that the new deal terms further reinforce "the commitment Jabil has to Flowgroup to help achieve a successful launch and production ramp-up in 2015".

He also said the partnership has been strengthened after volume production started November 17, adding: "This could speed up manufacturing cost reductions, which are the key element to lowering the selling price of the boiler and increasing its market share, in our view."

David Kipling, senior director of corporate investment at Jabil, added: "We are pleased that the relationship with Flowgroup continues to develop and we remain enthusiastic about Flowgroup's products and its business model. Jabil looks forward to continuing to provide support to Flowgroup in the pursuit of its business plans and production requirements."

Mr Stiff said in July when Flowgroup posted its interim results that he expected the full commercial launch of its boiler next year, "which we expect to be a significant value driver for our shareholders".