Haydale Graphene Industries PLC New Agreement Worth US$4.0 million

RNS Number : 5841V

Haydale Graphene Industries PLC

09 July 2024

 

 

For immediate release

9 July 2024

 

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR").

 

Haydale Graphene Industries plc

 

('Haydale', the 'Company', or the 'Group')

 

 

Haydale signs landmark agreement with China-based partner worth US$4 million over 5 years to expand the reach of its high-quality Silicon Carbide (SiC) whisker reinforced cutting tool business

Haydale (AIM: HAYD), the global Advanced Materials company, is delighted to announce that it has signed an agreement with a Chinese tooling manufacturing company (with whom it has been trading for over 12 months generating over US$250,000 in sales for Haydale) to facilitate the distribution of Haydale's world leading Silicon Carbide (SiC) whisker reinforced cutting tool parts to new markets in Asia. This agreement specifies a progressive minimum annual financial commitment for the partner to place US$4.0m of orders with Haydale over the duration of the five year deal. The size of the Chinese Silicon Carbide cutting tool market has been estimated at c. US$214 million by 2024 with a compound annual growth rate of 6.2 % (Source: Global Silicon Carbide Fibres Market Report 2021 - 2028, Market Insight Reports).  

Under the terms of the agreement the Chinese tooling manufacturing company will be the exclusive distributor of Haydale's unique and high-quality silicon carbide tooling into the Chinese market. This partnership is set to enhance the availability and accessibility of these premium materials to a broader range of industries in China, including the aerospace, automotive, and industrial manufacturing sectors.

Importantly, the agreement will also provide Haydale with exclusive access to their new partner's range of proprietary Carbide and Cermet products for the US and UK markets (although there is no minimum financial commitment set for this element) which, together with another agreement signed earlier this year with a China based Cubic Boron Nitride (CBN) tooling manufacturer, will allow Haydale to provide a one stop shop offering to its customers across a wide range of tooling requirements.  

This landmark deal for Haydale, valued at US$4.0 million over the five years, marks a major milestone in the Company's global expansion strategy, increasing their portfolio of tooling offerings, and promises to bolster the commercial scope and reach of its US-based tooling operation.

Haydale's CEO, Keith Broadbent, commented:

"We are excited to sign this agreement with our Chinese partner to help to bring our innovative silicon carbide cutting tool materials to China and the Asia area. It represents a significant opportunity for us to expand our international footprint and to support the growth of our manufacturing operations in the United States. We look forward to a successful collaboration that will drive value for both companies and our customers.

"Haydale's silicon carbide cutting tool materials are renowned for their superior quality and performance, offering enhanced durability, efficiency, and precision for a wide range of applications. The Company's commitment to excellence has positioned it as a trusted supplier in the cutting tool materials market. This new distribution agreement is part of Haydale's strategic plan to increase its presence in key global markets and to leverage new opportunities for growth and development."

 

For further information:

 

Haydale Graphene Industries plc
Keith Broadbent, CEO Patrick Carter, CFO Mark Bolt, Sales & Marketing Manager	Tel: [phone]
	www.haydale.com
Cavendish Capital Markets Limited (Nominated Adviser & Broker)
Julian Blunt/Edward Whiley, Corporate Finance Andrew Burdis, ECM	Tel: [phone]

 

 

Notes to Editors

 

Haydale is a global technologies group and service provider that facilitates the integration of graphene and other nanomaterials into the next generation of industrial materials and commercial technologies.  With expertise in graphene, other nanomaterials and Silicon Carbide, Haydale is able to deliver improvements in electrical, thermal and mechanical properties.  Haydale has been granted patents for its technologies in Europe, USA, Australia, Japan and China and operates from five sites in the UK, USA and the Far East.  For more information please visit: www.haydale.com or Twitter: @haydalegraphene

 

Caution regarding forward looking statements

Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ''believe'', ''could'', "should" ''envisage'', ''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', ''will'' or the negative of those, variations or comparable expressions, including references to assumptions.  These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities.  Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors.

 

A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions, competition, environmental and other regulatory changes, actions by governmental authorities, the availability of capital markets, reliance on key personnel, uninsured and underinsured losses and other factors, many of which are beyond the control of the Company.  Although any forward looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with such forward looking statements.  Accordingly, readers are cautioned not to place undue reliance on forward looking statements.  Subject to any continuing obligations under applicable law or any relevant AIM Rule requirements, in providing this information the Company does not undertake any obligation to publicly update or revise any of the forward looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based.

 

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