REG - Haydale Graphene Ind - New Agreement Worth US$4.0 million

Haydale Graphene IndustriesAnnouncement

09/07/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240709:nRSI5841Va&default-theme=true

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                           Tel: +44 (0) 1269 842 946

 Patrick Carter, CFO

 Mark Bolt, Sales & Marketing Manager
                                                www.haydale.com (http://www.haydale.com)
 Cavendish Capital Markets Limited (Nominated Adviser & Broker)
 Julian Blunt/Edward Whiley, Corporate Finance

Andrew Burdis, ECM

                                                Tel: +44 (0) 20 7220 0500

 

 

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 (http://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.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  CNTFLFVTDLITIIS