LONDON (ShareCast) - (ShareCast News) - Global advanced materials group Haydale Graphene announced on Friday that its wholly-owned US subsidiary, Haydale Technologies, has signed a new three-year contract with Tateho Chemical Industries with contracted revenues of $4.58m to the group over the contract term.
The AIM-traded firm said the contract was intended to supersede the previous arrangement which had less than two years to run, adding that it expected revenues from the contract for the current financial year to be "broadly in line" with those of the prior year.

"We are delighted to announce this advanced materials contract which effectively extends the earlier arrangement with Tateho," said Haydale Graphene CEO Ray Gibbs.

"The additional revenue it will generate for the Group is encouraging and also the novel ceramic blend offering to Tateho demonstrates our ability to meet our customers' changing needs."

Haydale described Tateho as a long-term customer of HTI, purchasing silicon carbide whiskers that are used in the manufacture of ceramic cutting tools.

The contract reportedly extended the range of materials available to Tateho.

In addition to silicon carbide whiskers, Tateho will also be able to purchase a "novel ceramic blend" developed by HTI, which could be used for ceramic cutting tool manufacture.

"Long term supply agreements such as this provide our business with excellent visibility of revenues and stability," explained Trevor Rudderham, president and CEO of HTI and managing director of Haydale's Advanced Materials SBU.

"The additional products that Tateho are now able to buy from us offer exciting growth opportunities for both businesses.

"We are pleased to have extended our working relationship with Tateho as they are one of our longest standing customers."

In addition to the contract, Tateho also signed a letter of intent to continue purchasing SiC materials from HTI for an additional three years after the expiration of the formal contract term in 2020.

The first shipment under the contract, which accounted for around 10% of the contract value, was made by HTI to Tateho at the end of June.

"Tateho has been in the ceramics and silicon carbide whiskers business for close to 30 years now," said Tateho president Yasunori Kitano.

"We have been very impressed with the high-quality materials that HTI has provided and we look forward to continuing our already strong working relationship.

"We see a growing opportunity in the silicon carbide whisker reinforced cutting tool market, and Tateho and HTI will apply our joint knowledge and know-how to continue to supply the best quality materials into the global aviation market today."

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