Business
Agreement
Agreement.
About this update from Accsys Technologies Plc
[{"type":"text","content":"\n Accsys Technologies PLC\n25 June 2007\n\n\n25th June 2007 AIM: AXS\n\n\n Accsys announces 500,000 cubic metre Agreement with Skanfore\n\nAccsys Technologies PLC ('Accsys' or 'the Company') announces that its 100%\nowned subsidiary, Titan Wood Ltd., has signed a licence agency agreement with\nSkanfore S.A. ('Skanfore'), who will take the rights for a nameplate capacity of\n500,000 cubic metres of production of Accoya(TM) wood.\n\nTerms of the agreement include Skanfore paying a premium of €10 million in\nconsideration for the right to market Accoya technology in certain markets,\nprincipally outside Europe and North America. The premium is equivalent to 10%\nof the total technology fee, at list prices, for half a million cubic metres of\nAccoya(TM) wood production capacity. Skanfore will identify, introduce and lead\nnegotiations for licence agreements for Titan Wood's proprietary Accoya(TM) wood\nproduction process and develop new markets for the Company. The agreement\ninvolves sales, logistics, financing options, regional product marketing and\noff-take requirements. The agreement is expected to broaden the scope and\ncapability of the uptake of Accoya(TM) technology around the world.\n\nWilly Paterson-Brown, Executive Chairman, of Accsys commented, 'Accsys has\nentered a new phase of growth and this agreement solidifies a relationship that\nwe have built over the past couple of years. Skanfore offers us a faster route\nto market both for relationships with licensees but also the development and\nawareness of the Accoya wood brand across a large geographic spectrum. I am\nparticularly pleased with Skanfore's significant financial commitment to our\nbusiness, emphasised by the scale of the premium negotiated for the rights which\nrepresents the first meaningful licence revenue for the Company.'\n\nDavid Popejoy, Managing Director of Skanfore, said: 'The more we looked into\nAccoya and the potential reach of this revolutionary new product, the more we\nliked it. Our business focus started in the Middle East but we now have\ndiscussions going on in a number of different countries and regions. There is no\nquestion the commercial interests in Accoya will accelerate considerably over\nthe course of the next year. We will also be working closely with Celanese to\nsecure long term commitments with Accoya(TM) licensees'.\n\nThe C...