Applied Graphene Materials PLC (LON:AGM) shares rose on Monday as the producer of speciality graphene materials revealed it has signed a distribution agreement with Carst & Walker (C&W), covering South Africa.
C&W SA, part of Hobart Enterprises Ltd, is the market-leading supplier of key additives to the South African paints and coatings industry.
Applied Graphene’s agreement with Carst & Walker will see the two companies collaborate on opportunities in the South African market and introduce Applied Graphene’s proprietary Genable anti-corrosion product into the South African coatings market.
The companies are also collaborating on opportunities in other territories.
"AGM's Genable anti-corrosion dispersion technologies are achieving growing industry recognition and commercial traction,” said Adrian Potts, the chief executive officer of Applied Graphene.
“It is important that we establish a highly credible, robust and technically reactive distribution network as we focus on expansion into international markets. Carst & Walker are a great partner for AGM [Applied Graphene] as we enter new geographic territories and the relationship provides an excellent route to market for our products,” he continued.
“In particular, as we are introducing a new technology, it is essential that our distribution partners are well trusted by their customer base and have a proactive and knowledgeable sales team to support new products. Carst & Walker meet this requirement and we look forward to exciting developments over the coming months in this territory," Potts concluded.
Phil Hinton, the director & international business manager of adhesives and coatings at Carst & Walker, said the company had made extensive market soundings with its customer base prior to signing the agreement.
“We have been tracking the technology development of AGM's graphene and Genable dispersion and having seen first-hand the outstanding results they are achieving, particularly the area of anti-corrosion performance, we are very excited by the opportunity to support their ambitious growth plans,” Hinton said.
Shares in Applied Graphene were up 3.6% at 29p in early deals.