Business
Gas Supply Agreement
Gas Supply Agreement.
About this update from Hardide Plc
[{"type":"text","content":"\n Hardide PLC\n26 October 2007\n\n\n\nPress Release 26 October 2007\n\n\n Hardide plc\n\n ('Hardide' or 'the Company' or 'the Group')\n\n Hardide secures global gas supply agreement with BOC\n\n\nHardide plc (AIM:HDD), the provider of unique surface engineering technology, is\npleased to announce that it has negotiated a global supply agreement with\nleading gases company BOC. The agreement will ensure the security and quality\nof supply of tungsten hexafluoride, the Group's most expensive and prolifically\nused raw material, at a significantly reduced price.\n\nThe global supply agreement will last from 1 December 2007 to 1 December 2010,\nwith the Company possessing an option to extend the agreement by a further two\nyears to 1 December 2012. The Hardide plc Board estimates the contract will\nsave the Group a minimum of £600,000 over the first three years.\n\nThe deal, which is the result of eighteen months of negotiation and testing of\nsupply, will also significantly reduce the Group's working capital requirement\nwhile securing continuity of supply of the exact purity of gas required at the\nGroup's manufacturing plants in both the UK and US. The deal also includes all\nfuture Hardide production facilities.\n\nBOC, a member of The Linde Group, will hold strategic stocks of tungsten\nhexafluoride on a five day lead time and will also supply Hardide with other\nspeciality gases used in the manufacturing process at significantly reduced\nrates.\n\nTungsten hexafluoride is one of the key gases used in the chemical vapour\ndeposition (CVD) process that produces the unique tungsten carbide-based\ncomponent coating which Hardide has developed for use in high wear industries\nsuch as oil and gas, and aerospace.\n\nPeter Davenport, Financial Director of Hardide plc, said: 'This is an excellent\ndeal for the Group as this contract gives us security and continuity of supply\nof such a strategically critical raw material. BOC listened carefully to our\nrequirements and worked hard to develop a favourable solution.'\n\nMartin Teller, Sales and Marketing Manager for BOC commented: 'We are delighted\nat working with such an innovative company as Hardide, and we look forward to\nserving their growing requirement for this important raw material.'\n\n\n Ends\n\n\n\nFor further information:\n\nHardide plc\nJim Murray Smith, Chief Executive ...