Haydale Graphene Industries wins silicon supply deal with global manufacturer

Nanomaterials company Haydale Graphene Industries has won a four-year supply deal with a global industrial manufacturer.

The AIM-listed company's subsidiary Advanced Composite Materials (ACM) will supply silicon carbide micro-fibre to a industrial manufacture of tooling and wear resistant solutions.

The deal, which could be extended by a further two years after the four-year period has ended, could potentially generate sales over $2.6m for the company over four years with the first order due at the end of the final quarter of 2017, with the minimum annual order quantity equating to average annual revenue of about $600,000.

Haydale’s silicon carbide fibre has been approved for use in production of silicon carbide whisker reinforced cutting tools which can be used in land based turbines and jet engine fan blades.

If the manufacturer ceases production of whisker reinforced ceramics, it will be able to terminate the contract and 50% of the agreed price for the annual minimum order quantity for the remainder of the four years will be paid to ACM.

Haydale Technologies chief executive Trevor Rudderham 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."

Shares in Haydale Graphene were up 6.95% to 177p at 1134 GMT.