North East robotics specialist Wootzano has secured a £37.4m ($47m) contract in the US which it says will be transformative for the company.

The County Durham-based designer of systems that can delicately pick up fruit and vegetables to be packaged has signed a three-year agreement with Packline Technologies, Inc that will see its robots sold across California - an agricultural powerhouse that is said to produce more than a third of the country's vegetables and three quarters of its fruits and nuts. Wootzano says the deal will have a state-wide impact that could contribute significantly to California's economic growth through boosting its agriculture sector that is worth billions of dollars.

The move is the latest step in the firm's push into the US market which picked up pace earlier this year when the first of Wootzano's Avarai systems launched there for use in grape packaging. It has been helped by the public-private business growth organisation Fresno County Economic Development Corporation and The British Consulate General - San Francisco.

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Wootzano's technology uses a human-like "skin" that gives the robotic arms greater sensory awareness needed for delicate packaging of soft fruit and vegetables. The robot can estimate weight of the items and assess quality before packing the fresh produce into punnets for delivery to retailers.

In September the firm showcased its engineering at San Francisco's TechCrunch Startup Battlefield 200 - a coveted event intended to promote some of the world's most dynamic technology start-ups. The Avarai systems has been developed as a "labour saving" tool to address the problem of a chronic shortage of workers in the food packaging business.

Work is also under way to make the tech the basis for automated harvesting capabilities that can match the speed of human hands. Wootzano's team is involved in the £9.13m, three-year Agri-OpenCore project which is part of DEFRA’s Farming Innovation Programme and is being led by APS Produce - a top supplier of tomatoes to the º£½ÇÊÓÆµ retailers.

Atif Syed, founder and CEO of Wootzano, said: "We are delighted to announce the triumphant conclusion of a pivotal contract valued at $47m, which not only supports our company's growth trajectory but also highlights a significant breakthrough in addressing labour shortages within the agricultural sector. This transformative partnership has not only enhanced our operational capacities but will also result in the creation of numerous new jobs. As we chart our course ahead, we are confident that the positive ramifications of this collaboration will extend beyond our company’s boundaries, contributing to both economic growth and community well-being."