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(Sharecast News) - Advanced materials group Haydale Graphene has inked a landmark agreement with a Chinese partner that will expand the reach of its high-quality Silicon Carbide whisker-reinforced cutting tool business into new markets in Asia.
The AIM-listed firm said the agreement specified "a progressive minimum annual financial commitment" for the partner to place at least $4.0m of orders with Haydale over the duration of the five year deal.
It also highlighted that the size of the Chinese Silicon Carbide cutting tool market has been estimated at roughly $214.0m by 2024, with a compound annual growth rate of 6.2%.
Under the terms of the agreement, Haydale's Chinese partner will be the exclusive distributor of its "unique and high-quality" silicon carbide tooling into the local 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," said Haydale.
"This landmark deal for Haydale, valued at $4.0m 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."
As of 1245 BST, Haydale shares were 8.47% higher at 0.32p.
Reporting by Iain Gilbert at Sharecast.com
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