The global supply agreement will run between 1 December 2007 and 1 December 2010, with the option of a further two-year extension. Hardide estimates the contract will save a minimum of £600,000 over the first three years.
The deal will also significantly reduce the group’s working capital requirement while securing continuity of supply of the exact purity of gas required at the group’s manufacturing plants in the
Under the agreement, BOC will hold strategic stocks of tungsten hexafluoride on a five day lead time and will also supply Hardide with other speciality gases used in its manufacturing process at significantly reduced rates.
Tungsten hexafluoride is one of the key gases used in the chemical vapour deposition (CVD) process that produces the unique tungsten carbide-based component coating which Hardide has developed for use in high-wear industries.
Peter Davenport, financial director of Hardide, said: ‘This is an excellent deal for the group as this contract gives us security and continuity of supply of such a strategically critical raw material. BOC listened carefully to our requirements and worked hard to develop a favourable solution.’
Martin Teller, sales and marketing manager for BOC said: ‘We are delighted at working with such an innovative company as Hardide, and we look forward to serving their growing requirement for this important raw material.’