(Alliance News) - Symphony Environmental Technologies PLC on Monday said it has signed a manufacturing agreement with UAE-based Ecobatch Plastic Factory, strengthening its presence in the Middle East.
Shares in the plastics and rubber technology developer were up 6.0% to 18.02 pence each in London on Monday around midday.
Under the agreement, Ecobatch will produce Symphony's biodegradable d2w masterbatch, primarily for supply into the Middle East. Production is expected to begin during the third quarter of 2022.
Symphony said that Ecobatch has received state funding to set up its masterbatch manufacturing facility, which is already producing white, black and coloured masterbatch products for the plastics industry in the UAE and Saudi Arabia.
It added that the Middle East is one of its "prime" markets and that the agreement is expected to reduce costs, improve efficiencies and increase sales. Further, it will minimise carbon dioxide emissions from lengthy transport systems, in line with Symphony's environmental, social and governance strategy.
"Ecobatch has sufficient capacity to support a substantial increase in demand in the region, which is anticipated due to wider enforcement of regulations which support the d2w type of biodegradable technology," Symphony added.
By Sophie Rose; sophierose@alliancenews.com
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Symphony Env. (SYM)