Graft Polymer (UK) PLC (LSE:GPL) shares rose over 5% to 2.95p after it unveiled a contract with Austria’s Gabriel Chemie to work on research, production and marketing using its polymer modification expertise.
The one-year R&D and supply agreement will focus on dispersants for coloured and black masterbatches.
Masterbatch is a solid or liquid additive used for giving colourless plastics colour or imparting other effects and functions.
The work will involve polymer powders, porous granules and liquids, the London-listed company said, with Gabriel Chemie having committed to purchase Graft’s Graftalloy, Graftakit, Graftasynt, Graftalen and Graftabond products.
Later in the year more of Graft’s innovative products will be supplied, it said, including graphene nanoemulsion, grafted fluoropolymers, infused nano polymers and more.
In a statement, Graft Polymer chief executive Victor Bolduev said the agreement is “a significant milestone in creating a strong platform from which to develop and enhance our product range”.
“We are building a number of partnerships with best-in-class companies and I very much look forward to working with Gabriel Chemie who are a standard for excellence in masterbatch production," he added.
Bolduev said the agreement “should take our R&D onto the next level with benefits for our competitive positioning, evolving contract pipeline and ability to deliver compelling cashflow to shareholders”.
Gabriel Chemie chief financial officer Andreas Berger said Graft’s “dedication to pioneering polymer technologies sets it apart”.