This paper is a case study of collaboration between a large steel company and a university's school of engineering. Our aim is to contribute to understandings of engagement between employers and higher education institutions and explore some of the complexities of such collaborations in their initiation and propagation. The analysis derives from case study research of a Centre of Excellence, as a collaborative venture. What becomes evident in the analysis is the often uneven and complex nature of collaboration and the difficulties that derive from the specifics of (higher education and industry) sector (contractual and organisational, as well as learning) practices, policies and cultures. Of central importance to propagating a relationship is moving beyond initial customer-supplier relationships towards more deeply embedded forms of engagement. The aim in this respect is to develop and diversify collaboration activities. This, we argue, necessitates close consideration of the respective partners' operational goals and structures--across, we suggest, three aspects of mutual engagement--and the way in which they are accommodated and mutually recognised within (and beyond) contractual relationships.