It supersedes an original deal it had with Tateho to supply silicon carbide whiskers used in the manufacture of ceramic cutting tools. Under the new arrangement, it will also provide ceramic blend products.
Tateho has signed a letter of intent to carry on buying materials for an additional three years after the expiry of the current agreement, the company said in a statement.
Haydale chief executive Ray Gibbs said of the new contract: “The additional revenue it will generate for the group is encouraging and also the novel ceramic blend offering to Tateho demonstrates our ability to meet our customers' changing needs."
The shares, up 18% in the year to date, rose a further 5% after the announcement to 185p.