Accsys Tech Regulatory News (AXS)

3 Sep 2007 07:01

Accsys Technologies PLC03 September 2007 3rd September 2007 AIM: AXS Accsys announces 500,000 m3 License Option Agreement for China. Accsys Technologies PLC ("Accsys" or "the Company") announces that its 100%owned subsidiary, Titan Wood Ltd., has signed a licence option agreement withSkanfore China S.A. ("Skanfore China"), a subsidiary of Skanfore S.A.("Skanfore"), in respect of rights to manufacture AccoyaTM in the People's Republic ofChina for a nameplate capacity of 500,000 cubic metres of production ofAccoyaTM wood. The terms of the license option agreement provide twelve months during whichSkanfore China enjoy exclusive rights to enter into a technology license withTitan Wood Limited for the licensing of AccoyaTM production capacity within thePeople's Republic of China. Upon exercising the option, Skanfore China has onemonth to sign a Technology License for the nameplate capacity. If SkanforeChina fails to exercise its option under the agreement or does so in respect ofa smaller capacity, it loses the territorial exclusivity granted under theagreement. Skanfore China is paying a premium of €500,000 (€1 per cubic metreof nameplate capacity) in consideration of the one year exclusivity, which sumwill be deductible from the list price of €200 per cubic metre of nameplatecapacity payable under any Technology License entered into within the period ofthe license option agreement. Willy Paterson-Brown, Executive Chairman, of Accsys commented, "Accsys isdelighted by the rapid success of the agency arrangement entered into withSkanfore in June. Whilst much hard work remains to be done before the partieswill be ready to sign a Technology License, this early commitment bodes well fora substantial licensing of capacity over future years. Whilst the potentialappetite for AccoyaTM within China is enormous, Accsys is very conscious that itis imperative that its intellectual property be fully respected in all itsmarkets and this relationship gives us confidence regarding this issue". David Popejoy, Managing Director of Skanfore said: "The China market offersexceptional potential. China currently consumes huge volumes of tropicalhardwood and despite vigorous economic growth, imported volumes of tropicalhardwood are already beginning to fall as availability reduces. Skanfore Chinaoffers strategic benefits to the Chinese economy - as the use of AccoyaTM willmainly be in substitution of environmentally insensitive tropical hardwood,softwoods treated with toxic chemicals or uPVC and aluminium - in both caseshelping reduce the reliance on more energy intensive raw materials. Skanfore'sdiscussions with potential partners have rapidly led to conclude we must securemaximum rights as a matter of urgency, hence we have now committed our entireagency rights through our Chinese subsidiary and are in discussion with TitanWood to extend our commercial relationship with them." The Company officially opened the world's first commercial production facilitymanufacturing commercial volumes of AccoyaTM wood at its subsidiary in TheNetherlands in May. ENDS For further information, please contact: Accsys Technologies PLC William Paterson-Brown, +44 (0) 20 8144 2510 Executive Chairman Collins Stewart Europe Limited Tim Mickley / Michael O'Brien +44 (0) 20 7523 8000Parkgreen Communications Justine Howarth +44 (0) 20 7851 7480 Notes to Editors Skanfore LLC (www.skanfore.com) is a privately owned, diversified tradingcompany, based in Abu Dhabi, UAE, with interests in mining, engineering,construction, finance and environmental projects. Skanfore China is a subsidiaryof Skanfore S.A. a BVI company. 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 under thesymbol '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