Tirupati Graphite PLC (LON:TGR) said it has won its first order for a new flame-retardant polyurethane foam (FRF) and a flame-retardant composite (FRC) developed for use in rail carriages in India and elsewhere.
The development follows an agreement with an Indian manufacturer of railway coaches to design and develop the FRF and FRC to the highest European standard, which has been adopted by Indian Railways, the country’s rail network operator.
Under the terms of the agreement, the customer will now manufacture the FRF and procure all its FRC requirements exclusively from Tirupati for a minimum period of three years
Tirupati added it has received an initial procurement order of FRC from the buyer at a price exceeding US$4,000/MT, which will allow for the manufacture of enough FRF for 50 carriages.
Indian Railways carries more than 13,500 passenger trains daily and rolling stock of more than 64,000 passenger carriages and following the FRF and FRC development,
Tirupati intends to brand its FRC as “GrafEN 45545” and license the technology globally.
Shishir Poddar, Tirupati’s chief executive, said: “The product development for the manufacture of FRF, which satisfies the most stringent European Union (‘EU’) safety standards, demonstrates our ability to develop bespoke specialty graphite products for hi-tech applications at the highest regulatory standards.
“We now have the ability to market the process and technology developed alongside a new FRC as a branded product into the EU and other parts of the globe while we continue to provide it for Indian Railways.
“This initial order is the first in what we expect to be a much larger, new proprietary product market segment, which we expect to grow alongside our other product, CARBOFLAMEX which is already being successfully produced and sold from our Patalganga plant.”
Tirupati listed in London last week at 45p per share. They were trading at 52p today.
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