Major investment in new production facility in US

RNS Number : 8056C

Hardide PLC

22 January 2015

 



22 January 2015

Hardide plc

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

Major investment in new production facility in North America

Hardide plc (AIM: HDD), the provider of advanced surface coating technology, announces that it is to open a production facility in Virginia, USA. 

The Company has signed a lease on a 26,000 square foot building in Martinsville, Henry County from where the Group will produce and supply its range of specialist Hardide coatings to the North American oil and gas, aerospace, flow control and advanced engineering markets. 

The total cost of the investment will be circa US$7m (£4.5m), spread over three years, and will be funded from the Group's own resources, in line with the announcement in August 2014 of the successful equity placement, together with grant funding and other incentives of potentially circa $1.5m (£1.0m) from the Commonwealth of Virginia and Henry County.  Production is expected to begin in the fourth quarter of 2015, with an objective to create 29 jobs over the next three years.  Fit-out of the building and local recruitment is already underway.  

The new facility is located within an Enterprise Zone in a state where more than 230 aerospace companies, the Commonwealth Center for Advanced Manufacturing and two Rolls-Royce facilities are based. It will house new and bespoke chemical vapour deposition (CVD) coating reactors as well as the latest pre-treatment, inspection, quality assurance and finishing equipment. 

Philip Kirkham, CEO of Hardide plc said:  "Demand from customers in North America is developing well and a local manufacturing capability will increase the volume of business that is available to us.  This move is consistent with our previously announced strategy of investing in capacity in the UK and US and will provide a strong platform for developing additional business with our existing customers as well as the diversification of our customer base.

"Martinsville, Virginia was chosen after a long and detailed evaluation of numerous locations in different states and we believe it makes a compelling economic and business case.  It is a community that supports and encourages advanced manufacturing and will provide us with an environment from which we can grow our existing and projected customer base in North America."

Maurice Jones, Virginia Secretary of Commerce and Trade said: "Hardide Coatings is a growing global company, and this significant investment to expand its manufacturing presence to serve worldwide customers is a great testament to the strong workforce and infrastructure in place in Martinsville-Henry County and the Commonwealth as a whole."

For further information:

Hardide plc
Philip Kirkham, CEO  Jackie Robinson, Communications Manager	Tel: [phone] www.hardide.com
finnCap  Stuart Andrews / Grant Bergman	Tel: [phone]      www.finncap.com
Newgate Communications  Adam Lloyd / Helena Bogle	Tel: [phone] www.newgatethreadneedle.com

Notes to editors:

Hardide develops, manufactures and applies advanced technology tungsten-carbide coatings to a wide range of engineering components.  Its patented technology is unique in combining in one material a mix of toughness and resistance to abrasion, erosion and corrosion; together with the ability to coat accurately interior surfaces and complex geometries.  The material is proven to offer dramatic improvements in component life, particularly when applied to components that operate in very aggressive environments.  This results in cost savings through reduced downtime and increased operational efficiency.  Customers include leading companies operating in oil and gas exploration and production, valve and pump manufacturing, nuclear, advanced engineering and aerospace industries. 

 

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