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ACCSYS TECHNOLOGIES PLC
(“Accsys” or "the Company")
Solvay and Accsys enhance their collaboration to accelerate marketing, sales and manufacturing of Accoya®
Accsys, the chemical technology group, focused on the acetylation of wood, today is pleased to announce details of a new agreement with Solvay Acetow Gmbh (“Solvay”), to refine the relationship between the two parties for the licensing, marketing and manufacturing of Accoya®. This new agreement provides the framework and funding for a significant increase in the manufacturing capacity in Arnhem.
Solvay will purchase a minimum 76,000 cubic metres of Accoya from the Arnhem plant over the period from 2016 to 2020 (the “offtake commitment”) and as a result of the increased manufacturing capacity in Arnhem and consequent greater sales capacity, under the new agreement Solvay will review the optimal timing to construct its 63,000 cubic metres Accoya manufacturing plant.
The enhanced relationship with Solvay will benefit both parties, with the increased manufacturing capacity and resulting sales expected to be achieved for Accoya in a faster timescale than would otherwise have been possible.
Accsys will double the existing manufacturing capacity at its Arnhem site in stages, up to 80,000 cubic metres per annum from 40,000 cubic metres. The initial incremental 20,000 cubic metres capacity is expected to come on stream in mid-2017.
The licence agreement covering Europe has been amended to provide increased royalties to Accsys and the return to Accsys of the selling rights for 20 European countries.
Accsys will provide sales and marketing services to Solvay on agreed terms in respect of Solvay’s exclusive European territories.
A combination of loans and fees from Solvay, in addition to those due under the offtake commitment, will fund the majority of the initial increase in manufacturing capacity at Arnhem, with the balance to be met by Accsys’ own resources, including the possible sale and leaseback of land at Arnhem.
Paul Clegg, CEO of Accsys said: “We are pleased to be able to cement our relationship with Solvay through this agreement to expand our Accoya® manufacturing capacity and Solvay’s commitment to purchase significant volumes from Accsys over the coming years. This is an exciting step in the development of our business and is further evidence of the fruits of our strategy to maximise returns from our technology platform and resultant product offerings.”
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These agreements allow the market development of Accoya to continue and optimises the roll out of manufacturing capacity under its partnering program with Solvay, increasing the certainty of supply for Accoya customers and users. It also enables Accsys to continue to develop global markets effectively, building on the expertise that it has developed over the last few years.
Accsys’s interim results for the six months ended 30 September 2015 will be released on 30 November 2015.