Cleantech Building Materials: Vietnam Distribution and Offtake Agreement
28 June 2021
Cleantech Building Materials plc
Vietnam Distribution and Offtake A greement
Cleantech Building Materials plc (“CBM” or the “Company”) is pleased to announce that CBM’s subsidiary, Diamond Wood China Limited (“Diamond Wood”), has entered into a Distribution and Offtake Agreement with Halogreen Corporation (“HGC”) (the “Agreement”).
Under the terms of the Agreement, HGC has committed to purchase a significant volume of Accoya® wood from Diamond Wood to be sold to manufacturers and project contractors in the Vietnam market. The initial duration of the Agreement is for three years.
Diamond Wood benefits from exclusive rights to manufacture and sell Accoya® wood in China and sales and marketing rights in the ASEAN countries, through its technology licence agreement with Titan Wood Limited, a subsidiary of Accsys Technologies plc.
Based in Ho Chi Minh City, Vietnam, HGC markets and sells various prestigious building material brands for local customers from its laboratory and warehouse facility in Thuan An City, as well as from its extensive distribution network across Vietnam.
Commenting, Jason Wang, CEO of CBM and Diamond Wood, said “We are delighted to be partnering with HGC in expanding the growth of Accoya® wood sales in the Vietnam market. In Asia there is an increasing awareness of the Accoya® wood brand and its applications for flooring, decking, siding, outdoor furniture, windows and doors. Accoya® wood has already been marketed in Vietnam for a decade and has been used in many high-profile projects. We anticipate an acceleration of strong recurring sales through HGC’s customer network.”
Commenting, Paul Richards, Chairman of CBM, said “With this three-year distribution and offtake agreement with HGC, and several other similar offtake agreements across China and Asia, Diamond Wood has been successfully building a solid order book in anticipation of the Company’s plan to construct its own Accoya® manufacturing facility in China during 2021 and 2022.”
Commenting, Nguyen Anh Nguyen , CEO of Halogreen Corporation , said “Accoya® Wood is a unique high performing building material produced by transforming certified sustainable lumber through a non-toxic process. It offers overall performance and sustainability credentials that exceed those of intensively resource depleting and heavily carbon-polluting alternatives. Accoya® Wood presents Vietnamese consumers with an excellent choice to build in a sustainable and environmental friendly fashion.“
THE DIRECTORS OF CLEANTECH BUILDING MATERIALS PLC ACCEPT RESPONSIBILITY FOR THE CONTENTS OF THIS ANNOUNCEMENT.