Recently-listed Advanced Nanotechnology expects a UK deal to boost demand for its cerium oxide nanoparticle dispersion and lift earnings for the second half.
The deal between UK-based Cerulean and the Stagecoach Group is to roll out use of Cerulean’s Envirox diesel fuel additive, in which Advanced Nano’s product is a key component.
The deal follows a successful 12-month commercial evaluation by the Stagecoach Group proving the product increases engine efficiency and lowers emissions.
According to Advanced Nano, negotiations are continuing on the terms of a supply agreement with Cerulean which the company expects to conclude in the next six months.
Advanced Nano is planning an expansion program at its Welshpool manufacturing plant that will increase capacity to meet current and expected growing demand for all its products, including ZinClear, launched by Perth supermodel Megan Gale. Based on current plans, the company expects phase one of the plant will become operational in the September quarter.
“I believe we have a world class manufacturing process for our nanotechnology products which are now being introduced in the cosmetics, industrial coatings and fuel additives sectors,” said Dr Paul McCormick, CEO of Advanced Nano in a release to the stock exchange.
Envirox will be introduced to the Stagecoach Group’s UK fleet of 7,000 buses over the next six months. The bus fleet operator also services the USA, Canada and New Zealand, with around 16,000 vehicles and rolling stock worldwide.
Advanced Nano listed on the Australian Stock Exchange last month following a $9 million offering to the market, after its eight year history as a private company. The largest shareholder is the University of Western Australia, where the research and development of the company’s technology originated.
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