TIDMAXS
RNS Number : 8180D
Accsys Technologies PLC
24 February 2020
AIM: AXS
Euronext Amsterdam: AXS
24 February 2020
Accsys Technologies PLC
("Accsys", the "Group" or the "Company")
Commercial Agreements with Cerdia Produktions GmbH
(formerly known as Rhodia Acetow)
Accsys, the fast-growing and eco-friendly company that combines
chemistry and technology to create high performance, sustainable
wood building products, announces that it has entered into an
agreement with Cerdia Produktions GmbH ("Cerdia"), under which
Accsys will take on responsibility for commercial activities under
agreements with Cerdia relating to Accoya(R) wood, which will
terminate on 1 April 2020 (the "Termination Agreement"). The
original agreements, being a licence agreement entered into in
2012, alongside supporting sales and marketing, offtake and
exclusivity agreements entered into in 2015, allowed for early
termination in certain circumstances in November 2020, with the
offtake agreement originally due to expire in December 2020. In
bringing forward termination to 1 April 2020, Accsys will be able
to sell Accoya(R) directly into central Europe and Scandinavia
approximately 9 months earlier than previously provided for.
Under the terms of the Termination Agreement, payments to Accsys
include fees of EUR3.2 million, to be applied to and set-off
against the loan from Cerdia agreed in 2015, which currently
amounts to approximately EUR8.6 million. As a result, Accsys' net
debt will be reduced and the Cerdia loan will remain in effect
until maturity in 2025.
Accsys is now liaising with European Accoya(R) customers and
other stakeholders to ensure a smooth transition of direct
Accoya(R) sales and marketing relationships from Cerdia, effective
from 1 April 2020.
With Accoya(R) demand continuing to exceed capacity, the
Termination Agreement reflects Accsys' strategic plans to increase
its own global manufacturing capacity and distribution network,
with further expansion at its Accoya(R) production facility in
Arnhem now in the advanced stages of planning, and discussions
progressing with Eastman Chemical Company in relation to a
potential new Accoya(R) plant in North America. The Termination
Agreement also follows Cerdia's own renewed focus on its core
chemicals businesses following its sale by Solvay to Blackstone in
2017.
Accsys looks forward to continuing to work with Cerdia both
during this period of transition and thereafter, exploring with
Cerdia other areas of potential cooperation.
Accsys confirms that trading is in-line with the Board's
expectations and no changes are being made to the Board's
expectations for the full year.
Ends
For further information, please contact:
Accsys Technologies Robert Harris, CEO via FTI Consulting
PLC William Rudge, FD
Numis Securities Limited
-Nominated Adviser Oliver Hardy (NOMAD)
and Ben Stoop
Joint Broker Oliver Cox +44 (0) 20 7260 1000
Carlton Nelson
Investec Bank plc - James Rudd
Joint Broker Alex Wright +44 (0) 20 7597 5970
Matthew O'Keeffe
FTI Consulting Alex Le May +44 (0) 20 3727 1340
Frank Neervoort +31 681 734 236
Off the Grid (The Netherlands) Yvonne Derkse +31 622 37 96 66
Notes to editors:
Accsys Technologies PLC ( www.accsysplc.com ) is a chemical
technology group whose primary focus is on the production of
Accoya(R) wood and Tricoya(R) wood elements, technology licensing
via its subsidiary, Titan Wood Limited, which has manufacturing
operations in Arnhem, the Netherlands (through its subsidiary Titan
Wood B.V.), a European office in London, United Kingdom, an
American office in Dallas, Texas (via its subsidiary Titan Wood,
Inc.) and technology licensing associated with the acetylation of
wood elements via its subsidiary Tricoya Technologies Limited. Any
references in this announcement to agreements with Accsys shall
mean agreements with either Accsys or its subsidiary entities
unless otherwise specified. Accsys Technologies PLC is listed on
the London Stock Exchange AIM market and on Euronext Amsterdam,
under the symbols 'AXS'. Accsys' operations comprise four principal
business units: (i) Accoya(R) wood production; (ii) building and
operating of Tricoya(R) wood chip acetylation plant in Hull; (iii)
technology development, focused on a programme of continuous
development of and improvements to the process engineering and
operating protocols for the acetylation of solid wood and the
development of technology for the acetylation of wood elements; and
(iv) the licensing of technology for the production of Accoya(R)
wood and Tricoya(R) wood elements across the globe.
Tricoya(R) Consortium In March 2017, Accsys announced the
formation of the Tricoya(R) Consortium to fund, build and operate
the Tricoya(R) plant in Hull, UK. M embers of the consortium
include BP and the leading manufacturer of sustainable wood-based
panels, MEDITE Europe DAC. Tricoya Ventures UK Ltd (TVUK), a
subsidiary of Accsys, owns and will operate the Tricoya (R) plant.
TTL exploits all Tricoya(R) related intellectual property and
benefits from any Tricoya(R) related revenues other than those
generated by the Tricoya (R) plant. The Tricoya (R) plant is
expected to have an initial capacity of 30,000 metric tonnes of
Tricoya(R) chips per annum, enough to produce approximately
40,000m(3) of Tricoya(R) panel products per annum. The Tricoya (R)
plant is expected to reach EBITDA breakeven at approximately 40%
design capacity and to take approximately four years to reach full
capacity following completion. The location of the Tricoya (R)
plant at Saltend Chemicals Park in Hull allows for expansion when
market conditions dictate.
Accoya (R) Wood ( www.accoya.com ) is produced using Accsys'
proprietary patented acetylation technology that effectively
converts sustainably grown softwoods and non-durable hardwoods into
what is best described as a "high technology wood". Distinguished
by its durability, dimensional stability and, perhaps most
importantly of all, its reliability (in terms of consistency of
both supply and quality), Accoya(R) wood is particularly suited to
exterior applications where performance and appearance are valued.
Moreover, the Accoya(R) wood production process does not compromise
the wood's strength or machinability. The combination of
dimensional stability, durability and retained strength means that
Accoya(R) wood offers a wealth of new opportunities to architects,
designers and specifiers. These benefits result in lower
maintenance and total cost of ownership while using a higher
sustainable and environmental responsible building material. For a
full archive of Accoya(R) news, visit www.accoya.com/news .
Tricoya(R) Wood Elements ( www.tricoya.com ) are produced using
Accsys' proprietary technology for the acetylation of wood chips
and particles for use in the fabrication of panel products such as
medium density fibreboard and particle-board. These products
demonstrate enhanced durability and dimensional stability which
allow them to be used in a variety of applications that were once
limited to solid wood or man-made products. Exploitation of Accsys'
proprietary technology relating to Tricoya(R) Wood Elements is
carried out through Tricoya Technologies Limited. Tricoya(R) Wood
Elements are lauded as the first major innovation in the wood
composites industry in more than 30 years.
Wood Acetylation is a process which increases the amount of
'acetyl' molecules in wood, thereby changing its physical
properties. When carried out to a sufficient level throughout the
wood, this process protects wood from rot by making it "inedible"
to most micro-organisms and fungi, without - unlike conventional
treatments - making it toxic. It also greatly reduces the wood's
tendency to swell and shrink, making it less prone to cracking and
ensuring that, when painted, it requires dramatically reduced
maintenance.
'Accsys' and 'AccsysTechnologies'aretrading names of Titan Wood
Limited. ACCOYA(R) , TRICOYA(R) and the Trimarque Device are
registered trademarks owned by Titan Wood Limited ("TWL"), a wholly
owned subsidiary of Accsys Technologies PLC, and may not be used or
reproduced without written permission from TWL, or in the case of
the Tricoya(R) registered trademark, from Tricoya Technologies
Limited, a subsidiary of TWL with exclusive rights to exploit the
Tricoya(R) brand.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
AGREAPAFALLEEFA
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