The deal opens the world’s largest market to the drum supplier and will allow TMMG to make Hydra-designed, high technology shearer drums at its factory in Tai Yuan City.

“China is the world’s largest coal producing country with annual production reaching some two billion tonnes a year,” said Gordon McShannon, Hydra’s chief executive.

“This trade agreement allows TMMG to install Hydra’s advanced technology cutting systems onto shearer drums designed by Hydra for use in China.”

He said the combination of production capability and the expertise of Hydra and TMMG creates the largest and most technically advanced shearer drum manufacturer in the world.

Hydra’s high technology cutting systems are exported from the UK to all the major coal producing countries but penetration of the Chinese market has been limited to date.

McShannon said the agreement was a win-win situation for the two companies and the Chinese coal mines that used the technology would benefit from productivity increases as well as health and safety benefits

“It also gives Hydra long-term growth prospects for the sale of our cutting systems and will enable TMMG to compete more effectively with other international shearer manufacturers in their home market,” he added.

”It is part of our strategic plan to increase our market penetration and widen our customer base in countries where we do not have manufacturing facilities.”