Haydale Graphene signs sales deal with China's Hongshida

9th Mar 2022 14:48

(Sharecast News) - Advanced materials provider Haydale Graphene has signed a sales representation agreement with Hainan Hongshida Information Technology Company, it announced on Wednesday.

The AIM-traded firm said the deal would be for an initial two years, and would allow Hongshida to act as a non-exclusive sales representative for Haydale's ceramic and silicon carbide products in China, including Hong Kong, and Taiwan.

Under the agreement, Hongshida would purchase a minimum of 200 kilograms of product from Haydale within the first year, increasing to 5,000 kilograms in the second year.

If all volume commitments were met, the minimum value of the contract would be $1.14m (£0.87m), but the board said it could be "considerably higher" depending on the product mix.

The company expected sales to mainly fall in the financial year ending June 2024.

Hongshida, located in China's new free trade zone in the Hainan province, provides engineering and technology solutions across equipment manufacturing, electronic components, and machinery to customers in the Chinese civilian aviation and other industrial sectors.

"We are pleased to announce this agreement and believe the new market opportunities offered by Hongshida provides further evidence of the solid commercial prospects for the ceramic and silicon carbide products manufactured at our US facility within these markets," said chief executive officer Keith Broadbent.

At 1417 GMT, shares in Haydale Graphene Industries were up 7.32% at 4.09p.