Haydale Graphene Industries plc (LON:HAYD), the global nanomaterials group, has today announced that its subsidiary, Advanced Composite Materials LLC, (“ACM”), has entered into a four-year agreement (“the Agreement”) to supply Silicon Carbide (“SiC”) micro-fibre to a global industrial manufacturer of tooling and wear-resistant solutions (“the Customer”). This sole supply Agreement has a potential sales value of over US$2.6 million over the initial four year term with first orders to be delivered in the final quarter of this financial year. The Agreement has a minimum annual order quantity which the Board expects will equate to an average annual revenue of approximately US$600,000 (subject to the terms and conditions of the Agreement being met).
Following a period of stringent testing, the Haydale SiC fibre has been approved for use in the production of SiC whisker reinforced (hard edged) cutting tools. There is considerable demand for SiC whisker reinforced cutting tools which are used extensively across a range of industries and more specifically, for the production, of land based turbines and jet engine fan blades. This Agreement marks a significant step forward for ACM, which is also now proactively selling Haydale’s range of graphene enhanced composites, 3D printing filaments and additives into the North American market. ACM was acquired by Haydale in September 2016.
Commenting on the agreement, Ray Gibbs, CEO of Haydale Graphene Industries plc, said: “We took the decision last year to invest in the USA through Haydale Technologies’ acquisition of a speciality materials business, ACM. We are delighted with the integration of ACM within the Group and especially the volume of samples of graphene, silicon carbide and a hybrid combination of both we have shipped to major US companies as well as certain targets in the Far East. Feedback has been very encouraging and positive. Our focus is to support the co-development of new materials with these companies and bring them to market.”
Commenting on the Agreement, Trevor Rudderham, CEO of Haydale Technologies, Inc. said: “We have made great progress over the past four months since our acquisition of ACM. We have solidified existing contracts and have now started winning new sales accounts such as this one asking for deliveries in the next quarter. This demonstrates our focus on building long term business partnerships with best in class corporations. As we continue to integrate all of the products and services Haydale offers into the US, we are confident of achieving continued success.”
Further terms of the Agreement
The Agreement contains customary termination provisions including in the event that the customer ceases production of whisker reinforced ceramics, the customer shall have the right to terminate the Agreement and 50 per cent. of the agreed price for the annual minimum order quantity for the remainder of the four year initial term would remain payable to ACM. The Agreement may also be renewed for an additional two year period subsequent to expiry of the initial four year term.
