TIDMAXS
RNS Number : 0641J
Accsys Technologies PLC
11 July 2013
AIM: AXS
NYSE Euronext Amsterdam: AXS
11 July 2013
ACCSYS TECHNOLOGIES PLC
('Accsys' or the 'Company')
ACCSYS JV SIGNS TRICOYA LICENCE AGREEMENT WITH MEDITE
First Tricoya licence agreement through JV with INEOS
Accsys, the environmental science and technology company whose
primary focus is on the production and technology licensing of
Accoya(R) wood and Tricoya(R) wood elements, today announces that
its joint venture with INEOS, Tricoya Technologies Limited ('TTL'),
has entered into a joint development, production and distribution
Licence Agreement with Medite Europe Ltd ('Medite') tobuild and
operate a plant to manufacture, market and sell Tricoya(R) (the
'licence agreement').
Key details of the licence agreement are:
-- TTL has granted Medite a licence to build and operate a plant
to manufacture an initial capacity of 30,000 metric tonnes per
annum of Tricoya(R) (equivalent to approximately 42,000m(3) of
Tricoya(R) MDF panels), with a time limited option to increase
capacity upon payment of additional fees
-- Medite has secured exclusive rights to market and sell
Tricoya(R) MDF in Ireland, The Netherlands and the United Kingdom
and non-exclusive rights to market and sell Tricoya(R) MDF or
Tricoya(R) wood elements, subject to certain restrictions, in other
territories
-- The licence is conditional on Medite obtaining approval from
its Board of Directors prior to proceeding with construction of the
plant; Board approval is targeted for mid-2014 with mechanical
completion of the plant targeted by the end of 2015
-- The licence has been granted in return for a series of
technology-based licence payments that Medite will begin making to
TTL upon signature of the agreement, and royalty fees payable per
metric tonne of production
-- TTL is responsible for producing a detailed engineering plan,
called a Process Design Package ('PDP'), that scopes out the core
areas of the plant; part of the PDP is expected to be delivered
prior to the licence becoming unconditional following Medite Board
approval, with the final PDP delivered after approval
-- Medite will provide, in exchange for certain conditional
future payments from TTL, both technical support services and, if
required, a guaranteed proportion of its output to support other
prospective Tricoya(R) licensees
It is anticipated that Accsys will provide significant and
increasing volumes of acetylated material during the pre-start-up
period, both to support Medite's market development and to enable
Medite to provide seeding material for other prospective licensees
in different regions.
Background to the licence agreement
Accsys and Medite initially entered into a Joint Development
Agreement ('JDA') in June 2009. Following Accsys entering into its
JV with INEOS, TTL and Accsys signed Heads of Terms with Medite in
December 2012 for the JDA to be transferred to TTL and amended to
reflect progress made and the licensing Medite now wishes to engage
in. Medite has been producing Medite Tricoya "Extreme Durable MDF"
since the end of 2011 and selling into countries including Germany,
Ireland, the Netherlands and the United Kingdom. Sales in all
markets in which Medite Tricoya(R) has been launched has met or
surpassed expectations, with customers willing to pay a significant
premium over conventional MDF material due to the greatly enhanced
properties of Medite Tricoya(R) . This material provides all of the
inherent advantages of MDF, such as ease of cutting, forming and
fixing, relatively low density, smooth surface properties and
attractive surface finishing options, with durability and
dimensional stability that match or exceed almost all known
commercial alternatives for exterior applications (whether wood,
metal, plastics, composites or fibre cement).
The Medite Tricoya(R) MDF produced and sold to date has been
manufactured using acetylated material provided by Accsys. While
manufacturing in this manner has been essential in order to seed
markets and establish demand for the product, it was always
envisaged that long term production by Medite would be through a
dedicated, co-located production plant in Clonmel, Ireland. The
licence agreement is for a new, continuous production process
developed by Accsys with the input and support of INEOS, one of the
largest licensors of chemicals process technologies in the world,
through the TTL JV. The process is based on the same underlying
acetylation technology principle as Accsys uses to manufacture
Accoya(R) .
In the period prior to the plant being operational, in addition
to TTL producing the PDP, it will continue to work closely with
Medite to market and promote Medite Tricoya(R) in order to drive
further market penetration.
Commenting, Paul Clegg, CEO of Accsys and Chairman of TTL,
said:
"Our relationship with Medite is long standing and I am
delighted that TTL has been able to cement it by formalising this
licence agreement. The work carried out and sales volumes achieved
by Medite have already proved there is a strong and growing market
for Tricoya(R) and I look forward to a continuing successful
collaboration with Medite as we move towards the licence becoming
unconditional and plant construction commencing."
"The agreement provides further evidence of the progress that
Accsys has made in marketing, selling and licensing its
award-winning products and technologies on a global basis. As
recently announced, sales of Accoya(R) increased in excess of 50%
in the first quarter of the current financial year when compared to
the same period last year and we continue to work hard on
developing further licence opportunities for Accoya(R) and
Tricoya(R) . These are exciting times for our business and
developments such as this licence agreement will help us to move
closer to our short-term goal of becoming a sustainably profitable
business."
Ends
For further information, please contact:
Accsys Technologies Paul Clegg, CEO via Blythe Weigh
PLC Hans Pauli, COO Communications
Will Rudge, FD
Nominated Adviser: Oliver
Cardigan
Corporate Broking: Christopher
Wilkinson +44 (0) 20 7260
Numis Securities Ben Stoop 1000
+44 (0) 20 7138
3204
Paul Weigh +44 (0) 7989 129658
Blythe Weigh Communications Tim Blythe +44 (0) 7816 924626
+31 20 794 4700
Frank Neervoort +31 681 734 236
Off the Grid (The Netherlands) Giedo Van Der Zwan +31 624 212 238
Notes to editors:
Accsys Technologies PLC (www.accsysplc.com) is an environmental
science and technology company whose primary focus is on the
production of Accoya(R) wood and 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 Windsor, United Kingdom, and an
American office in Dallas, Texas (via its subsidiary Titan Wood,
Inc). All group subsidiaries are ultimately 100% owned by Accsys
and trade as Accsys Technologies. 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 by NYSE Euronext,
under the symbols 'AXS'. Accsys' operations comprise three
principal business units: (i) Accoya(R) wood production; (ii)
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
(iii) the licensing of technology for the production of Accoya(R)
wood and Tricoya(R) wood elements across the globe.
Medite Europe Ltd (www.medite-europe.com), a wholly owned
subsidiary of Coillte Panel Products, produces Medite panels,
arguably Europe's most recognised brand of MDF. Available in Europe
since 1976, Medite was the pioneer in introducing MDF to European
markets. Medite products are recognised as the benchmark for
quality, consistency and performance in the MDF market. Coillte is
a commercial company operating in forestry, land based businesses,
renewable energy and panel products. The company employs
approximately 1,000 people and was established in 1988. It owns
over 445,000 hectares of land, about 7% of the land cover of
Ireland. More information can be found at www.coillte.ie.
INEOS (http://www.ineos.com) is one of the world's leading
chemicals companies; a global manufacturer of petrochemicals,
specialty chemicals and oil products. Comprising 15 businesses,
with a production network spanning 51 manufacturing facilities in
11 countries, the company produces more than 40 million tonnes of
petrochemicals. INEOS employs 15,000 people and had sales in 2011
of $42bn. Through its Joint Venture with PetroChina (petroineos) it
produces 20 million tonnes per annum of crude oil refined products
(fuels). It also operates joint ventures with BASF, PQ Corp and
Total. The investment in the new joint venture is being made by
INEOS Industries Limited.
INEOS Technologies (http://www.ineos.com) is a leading developer
and licensor of technologies for the global petrochemicals
industry. It offers the broadest range of petrochemical
technologies on the market today and also supplies catalysts,
additives and coatings that our customers require to obtain the
best possible performance from their investments.
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.
Unlike most tropical and European hardwoods, its colour does not
degrade when exposed to ultraviolet light. Moreover, the Accoya(R)
wood production process does not compromise the wood's strength or
machinability. The combination of UV resistance, dimensional
stability, durability and retained strength means that Accoya(R)
wood offers a wealth of new opportunities to architects, designers
and specifiers. For marine uses where weight is also important,
Accoya(R) wood for the first time provides boat builders with a
wood that is strong, lightweight, durable and retains its natural
beauty for far longer. For a full archive of Accoya(R) news, visit
www.accoya.com/news.asp.
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 wood based composites,
including panel products. These composites 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, a joint venture between Accsys and INEOS
Industries Holdings 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 Technologies is the trading name 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 joint venture between TWL and INEOS Industries Holdings
Limited with exclusive rights to exploit the Tricoya(R) brand.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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