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LONDON (Alliance News) - Active Energy Group PLC Monday said it has achieved a third Turkish woodchip supply contract and has entered into a new port and logistics operations agreement.
The European supplier of woodchip and timber products for green energy biomass power generation said it has signed a new contract to supply its MDF-quality wood chip to Kastamonu Entegre AS, a Turkish MDF manufacturer. MDF is medium-density fibreboard used in construction and home furnishing.
The company said the deal is to supply 87,000 metric tonnes of the wood chip throughout 2014 which is expected to generate roughly USD9 million for the company.
The new follows an announcement by the company on January 13 that it secured two other major MDF supply contracts in Turkey which were expected to generate an additional USD24 million for the company in the full year 2014.
Active Energy also announced that it has entered into a full-service logistics agreement with TransInvest Service, designed to streamline its port and loading operations to handle the increased demand for its MDF-quality woodchip.
The company said it believes the new deal will allow it to deliver significant improvements to its loading and delivery capabilities, increasing operational efficiencies and driving down processing costs.
"The group is on now track to produce and deliver approximately 475,000 tonnes of wood chip in 2014 for both the MDF manufacturing and Biomass fuel markets, a considerable uplift over the 80,000 tonnes that we achieved in the last six months of 2013 via our legacy port operations," Chief Executive Officer Richard Spinks said in a statement.
Active Energy shares were up 14% at 2.49 pence early Monday, putting it among the top-10 AIM risers.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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