Tirupati Graphite PLC (LSE:TGR, OTCQX:TGRHF) has signed an exclusive UK marketing and distribution agreement with Minralis for a range of graphite-based flame retardant products.
The products have been developed by TSG, over which Tirupati has a binding option to acquire 100%, which is targeting the UK where there is need for new flame retardant technology following the Grenfell Tower tragedy.
TSG and Minralis have been working in collaboration on product tests with several buyers and have achieved approval from a number of key clients, said the statement.
Minralis has already received an order for 66 tons of one of TSG's products, CarboflameX, valued at US$200,000 and to be delivered in three shipments.
TSG and Minralis expect the partnership to generate first-year revenues of US$1mln the sale of graphite-based products.
Shishir Poddar, Tirupati Graphite’s executive chairman, said: "The expandable graphite markets in the UK are growing at a rapid pace with some buyers reporting that their orders have doubled year-on-year.
“This is an opportune time for us to establish ourselves in this niche product arena in our home markets, which may prompt us to consider creating downstream facilities for the suite of products in the UK, including for lithium-ion anode materials, and potentially graphene.
“We see this as a beginning that will provide us opportunities in the UK market to lay the foundations for realising the future potential of the fire safety and energy transition arena which are the core of our growth drivers.
"The company's graphite-based flame retardant products offer considerable advantages given the extensive remedial work required to meet the Government's building and construction safety commitments.
Nigel Lockwood, at Minralis, added: Since we began a collaboration with Tirupati we have been hugely impressed and excited by the unrivalled technical excellence of not only the existing expandable graphite range but also by the pipeline of groundbreaking product.”