TIDMAXS
RNS Number : 3881J
Accsys Technologies PLC
23 August 2021
AIM: AXS
Euronext Amsterdam: AXS
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
23 August 2021
Accsys Technologies PLC
("Accsys", the "Group" or the "Company")
Tricoya(R) plant construction update
Accsys, the fast-growing and eco-friendly company that combines
chemistry and technology to create high performance, sustainable
wood building products, today announces an update regarding the
final stages of construction towards commercial operation of the
new Tricoya(R) plant in Hull, UK, by Tricoya UK Limited ('Tricoya
UK'), Accsys' joint venture in relation to the Hull plant.
In June 2021 Accsys announced that it had taken over the project
to complete the final stages of plant construction and was
evaluating the most effective ways to do this, optimising the
associated impacts on costs and timelines.
Following an extensive gap analysis to review and validate the
remaining works, costs, timeline and people required to complete
the project, Accsys is now able to provide an updated outlook for
the completion of the project:
-- The plant is anticipated to be commercially operational by
July 2022.Work is ongoing to potentially accelerate achievement of
this milestone.
o The remaining final stages of the works are being directly
project managed by Tricoya UK with highly-experienced internal and
recently-added people and resources, without requiring the
appointment of another lead EPC contractor. Third-party expertise
and support will be brought in as and when required to complete
works safely and quickly.
o Various workstreams have safely re-commenced on the site with
a significant increase in our own project team, changes to project
governance, and the engagement and remobilisation of key
mechanical, electrical and civil contractors.
-- Demand from the large addressable market for Tricoya(R)
continues to be strong, as seen in the buoyant sales previously
reported. We continue to expect that, once operational, the plant's
production will ramp-up to full capacity over approximately three
years.
-- Following the purported termination of the EPC contract in
June 2021 by Tricoya UK's former EPC contractor, Engie Fabricom UK
Limited ('EFAB'), a Settlement Agreement has been entered into
between Tricoya UK and EFAB. Subject to the terms of this
agreement, the parties have agreed to settle and release each other
from liability for claims against each other under the EPC
contract, including any claims in respect of COVID-19 and
outstanding contractual payments.
-- The total project capital cost is expected to be an
additional EUR9m to EUR15m more than previously anticipated. The
additional costs are largely due to the extended project duration,
including the previously-reported engineering changes, delays due
to COVID-19, and time and recovery actions resulting from past
management of and demobilisation from the site. The costs also
reflect the settlement agreement with EFAB. As a result, the total
cumulative project capital cost for the plant is now anticipated to
be EUR90m to EUR96m.
-- Accsys remains committed to the safe completion and operation
of the plant to realise the potential of the Tricoya(R) product's
target 40% gross margin, large market opportunity, and ongoing high
demand.
Ends
For further information, please contact:
Accsys Technologies PLC ir@accsysplc.com
Sarah Ogilvie, Investor Relations
======================================== ======================
Numis Securities (London)
Oliver Hardy (NOMAD), Ben Stoop +44 (0) 20 7260 1000
======================================== ======================
Investec Bank plc (London)
Carlton Nelson, Alex Wright +44 (0) 20 7597 5970
ABN Amro (Amsterdam)
Richard van Etten, Dennis van Helmond +31 20 344 2000
======================================== ======================
FTI Consulting (UK)
Matthew O'Keeffe, Alex Le May +44 (0) 20 3727 1340
======================================== ======================
Off the Grid (The Netherlands)
Frank Neervoort, Yvonne Derske +31 681 734 236
======================================== ======================
Notes to editors:
Accsys (Accsys Technologies PLC) is a fast-growing business with
a purpose: changing wood to change the world. The company combines
chemistry, technology and ingenuity to make Accoya(R) wood and
Tricoya(R) wood elements: high performance wood products that are
extremely durable and stable, opening new opportunities for the
built environment and giving the world a choice to build
sustainably. Accsys transforms fast-growing, certified sustainable
wood into building materials with an up to 50-year warranty,
locking carbon stored in the wood into useful products for decades,
with performance characteristics that match or better those of
non-renewable, resource-depleting and polluting alternatives.
Accsys is listed on the London Stock Exchange AIM market and on
Euronext Amsterdam, under the symbols 'AXS'. Visit
www.accsysplc.com
Accoya(R) solid wood is sustainable, durable, and stable with
exceptional performance, finish and sustainability. Accsys'
proprietary acetylation process makes the wood more dimensionally
stable and because it is no longer easily digestible, extremely
durable. It is one of very few building materials to be Cradle to
Cradle Certified(TM) at the Gold level, with a Platinum rating for
Material Health, confirming that no harmful or toxic additives or
chemicals are present to leach out into the environment. Primary
applications for Accoya(R) wood include windows, doors, cladding
and decking, where the combination of performance and
sustainability benefits compete favorably against hardwoods,
plastics, metals and concrete. Visit www.accoya.com
Tricoya(R) acetylated wood elements are produced for use in the
fabrication of panel products such as medium density fibreboard
(MDF). Panel products made with Tricoya(R) wood elements are truly
durable and stable enough for use outdoors and in wet environments,
unlocking new possibilities for design and construction. They have
been lauded as the first major innovation in the wood composites
industry in more than 30 years and bring the flexibility of
traditional panel products and sustainability benefits of wood to a
whole new range of applications. Visit www.tricoya.com
Any references in this announcement to agreements with Accsys
shall mean agreements with either Accsys or its subsidiary entities
unless otherwise specified. 'Accsys' and 'Accsys Technologies' are
trading names of Titan Wood Limited ("TWL"), a wholly-owned
subsidiary of Accsys Technologies PLC. Accoya (R) , Tricoya (R) and
the Trimarque Device are registered trademarks owned by TWL, 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
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