Accsys Tech Regulatory News (AXS)

20 Nov 2007 07:15

Accsys Technologies PLC20 November 2007 20th November 2007 AIM: AXS NYSE Euronext Amsterdam: AXS Accsys Signs Full License Agreement in China Accsys Technologies PLC ("Accsys" or "the Company") announces that its 100%owned subsidiary, Titan Wood Limited, has signed a full license agreement withDiamond Wood China Limited ("Diamond Wood"), in respect of rights to manufactureAccoyaTM wood in The People's Republic of China for an annual nameplate capacityof 500,000 cubic metres of production of AccoyaTM. The terms of the license agreement include an initial payment of €9,500,000 andthree years exclusivity. The total 500,000 cubic metres nameplate capacityagreed between the two companies will include both Diamond Wood's ownmanufacturing capacity as well as sub-licensing agreements within China. Furthertechnology fees, in the amount of €90,000,000 in aggregate, will be payable asDiamond Wood develops project plans and secures regulatory approval. Paymentswill be over the planning, construction and commissioning periods of eachproject. These license fee payments reflect €200 per cubic metre of nameplatecapacity. In addition there will be €22 per cubic metre of production royaltiesfor twenty years. Diamond Wood acquired the rights to China, following Titan Wood's exclusiveoption agreement with Skanfore China, announced in September. Willy Paterson-Brown, Executive Chairman of Accsys commented, "We are obviouslydelighted to announce our first full license agreement, with Diamond Wood China.This is not only the culmination of a huge amount of work by both parties, butit is also a step-change for Accsys as it underwrites significant licensingvolume and propels Accsys into new levels of commercial expectations. We lookforward to working very closely with Diamond Wood to assist its development andalso in conjunction with them to protect the intellectual property surroundingour wood acetylation technology". Greg Lee, President, Diamond Wood, added, " We see enormous opportunities forAccoyaTM wood in the Chinese market, one of the fastest growing markets in theworld, and have moved fast to secure exclusive production rights. The agreementwith Titan Wood reflects the scale and timing of our commitment to the Accoyaproduction technology. We are planning a series of projects with differentvolumes and are currently preparing details for our first project in Nanjing, inconjunction with Nanjing Chemical Industry Park (NCIP). Further projects arealready being planned in other regions of China. We anticipate securing approvalfrom Chinese regulatory authorities for the different projects, and to haveapproval in respect of the entire 500,000 cubic metres capacity within threeyears. Our expectation over a five year period would be to increase thatcapacity further, agree to increased volumes and extend our exclusive rights fora longer period of time". - ENDS - For further information, please contact: Accsys Technologies PLC William Paterson-Brown, +44 (0) 20 8114 2510www.accsysplc.com Executive Chairman Collins Stewart Europe Limited Tim Mickley / Michael O'Brien +44 (0) 20 7523 8000Parkgreen Communications Justine Howarth / +44 (0) 20 7851 7480 Bex Sanders-Hewett Citigate First Financial B.V. Wouter van de Putte / Laurens Goverse + 31 (0) 20 575 4080 Notes to Editors: Diamond Wood China Limited (www.diamondwoodchina.com) is a privately heldcompany based in Hong Kong. Titan Wood Limited (www.titanwood.com) is a wholly owned subsidiary of theAccsys Technologies PLC (www.accsysplc.com) group of companies. AccsysTechnologies PLC is listed on the London Stock Exchange AIM market, and onEuronext Amsterdam by NYSE Euronext, under the symbols 'AXS'. Wood Acetylation is a process, which increases the amount of 'acetyl' moleculesin wood, thereby changing its physical properties. The process protects woodfrom rot by making it "inedible" to most micro-organisms and insects, without -unlike conventional treatments - making it toxic. It also greatly reduces thewood's tendency to swell and shrink, making it less prone to cracking andensuring that when painted it requires dramatically reduced maintenance. AccoyaTM wood (www.accoya.info) is produced using a patented process thateffectively converts sustainably grown softwoods and non-durable hardwoods intowhat is best described as a "new wood species". Distinguished by its durability,dimensional stability and, perhaps most importantly of all, its reliability (interms of consistency of both supply and quality), AccoyaTM wood is particularlysuited to exterior applications where performance and appearance are valued.Unlike most tropical and European hardwoods, its colour does not degrade whenexposed to ultraviolet light. Moreover, the AccoyaTM wood production processdoes not compromise the wood's strength or machinability. The combination of UVresistance, dimensional stability, durability and retained strength means thatAccoyaTM wood offers a wealth of new opportunities to architects, designers andspecifiers. For marine uses where weight is also important, AccoyaTM wood forthe first time provides boat builders with a wood that is strong, lightweight,durable and which retains its natural beauty for far longer. ACCOYA is a registered trademark owned by Titan Wood Limited This information is provided by RNS The company news service from the London Stock Exchange