AN OXFORDSHIRE company which produces a revolutionary hard coating to increase the life of drills used in the oil business, has signed a contract which should save it £600,000 in three years.

The agreement with gases company BOC will ensure the constant supply of tungsten hexafluoride, the group's most expensive and most used raw material - and at a reduced price. The Bicester company estimates the contract will save the group a minimum of £600,000 over the first three years.

Tungsten hexafluoride is one of the key gases used in the process, originally invented by Russian scientists in the Soviet era, that produces the unique tungsten carbide-based component coating which Hardide has developed for use in industries such as oil and gas, and aerospace. Financial director Peter Davenport said: "This is an excellent deal for the group as this contract gives us security and continuity of supply of such a strategically critical raw material. BOC listened carefully to our requirements and worked hard to develop a favourable solution."

The expanding Hardide group now employs 34 people at its Bicester office, up from 25 last year, and another nine in Houston, USA. Results for this financial year are not yet available, but for the year endng December 2006 it achieved revenues of £1.89m.