Re Agreement

RNS Number : 3875D

Hardide PLC

29 April 2013

 



Press Release

29 April 2013

Hardide plc

("Hardide" or "the Group" or "the Company")

Re Agreement

Hardide plc (AIM: HDD), the provider of advanced surface coating technology, is pleased to announce a supply agreement involving a next-generation superabrasive coating technology that is covered by new UK & overseas patent applications.

This new superabrasive coating will enable drilling tools to operate at peak performance in highly abrasive environments where current technologies fail. The Company has signed a mutually exclusive five-year supply agreement for its use in oil & gas applications with hardfacing specialists Cutting & Wear Resistant Developments Limited of Sheffield. This is an addition to the latter's range of hardfacing materials.

This advanced superabrasive material will reduce wear and improve the performance of downhole tools used in the oil and gas industry as well as tools for other industries such as mining, mineral extraction and construction. Improved tool performance reduces costly downtime which can be particularly expensive for offshore drilling, as well as for directional and horizontal drilling operations.

The exclusivity in the agreement is dependent on yearly minimum volumes being purchased by Cutting & Wear over the five-year period.  The agreement includes the establishment of new manufacturing facilities at Hardide's plant in Bicester, Oxfordshire where production scale quantities have already been produced and sold.

Philip Kirkham, CEO of Hardide plc said: "This is a major step forward in coating technology and hardfacing materials.  This is also a potentially game-changing breakthrough for Hardide as we will be the only producer of this type of advanced superabrasive coating.  We believe the market opportunities to be extensive as the need for hardfaced tools intensifies as the oil and gas industry explores in ever more remote and challenging areas with deeper and more demanding drilling conditions. We also see opportunities for this new coating extending into mining, construction and other extractive industries."

The coating production process is being developed with the support of a Technology Strategy Board 'Smart' grant which was awarded in January 2013.

Ends

For further information:

Hardide plc

Philip Kirkham, CEO                                                                                         Tel: [phone]

Jackie Robinson, Communications Manager                                                              www.hardide.com

N+1 Singer                                                                                                      Tel: [phone]

Andrew Craig/Ben Wright                                                                                          www.n1singer.com

Note to editors

Hardide Coatings develops, manufactures and applies tungsten carbide-based coatings to a wide range of engineering components.  The Group's patented technology is unique in that it combines abrasion, erosion and corrosion resistant properties in one coating.  When applied to metal components, the technology is proven to offer dramatic cost savings through reduced downtime and extended part life.  Customers include leading companies operating in oil and gas exploration and production, valve and pumps manufacturing, general engineering and aerospace.  

Cutting & Wear are specialists in downhole tool engineering and hardfacing for the international oil and gas industry. The company supplies hardfacing to a global network of customers in 50 countries.

 

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