Business
China Option Agreement
China Option Agreement.
About this update from Accsys Technologies Plc
[{"type":"text","content":"\n Accsys Technologies PLC\n03 September 2007\n\n\n3rd September 2007 AIM: AXS\n\n\n Accsys announces 500,000 m3 License Option Agreement for China.\n\n\nAccsys Technologies PLC ('Accsys' or 'the Company') announces that its 100%\nowned subsidiary, Titan Wood Ltd., has signed a licence option agreement with\nSkanfore China S.A. ('Skanfore China'), a subsidiary of Skanfore S.A.('Skanfore\n'), in respect of rights to manufacture AccoyaTM in the People's Republic of\nChina for a nameplate capacity of 500,000 cubic metres of production of\nAccoyaTM wood.\n\n\n\nThe terms of the license option agreement provide twelve months during which\nSkanfore China enjoy exclusive rights to enter into a technology license with\nTitan Wood Limited for the licensing of AccoyaTM production capacity within the\nPeople's Republic of China. Upon exercising the option, Skanfore China has one\nmonth to sign a Technology License for the nameplate capacity. If Skanfore\nChina fails to exercise its option under the agreement or does so in respect of\na smaller capacity, it loses the territorial exclusivity granted under the\nagreement. Skanfore China is paying a premium of €500,000 (€1 per cubic metre\nof nameplate capacity) in consideration of the one year exclusivity, which sum\nwill be deductible from the list price of €200 per cubic metre of nameplate\ncapacity payable under any Technology License entered into within the period of\nthe license option agreement.\n\n\n\nWilly Paterson-Brown, Executive Chairman, of Accsys commented, 'Accsys is\ndelighted by the rapid success of the agency arrangement entered into with\nSkanfore in June. Whilst much hard work remains to be done before the parties\nwill be ready to sign a Technology License, this early commitment bodes well for\na substantial licensing of capacity over future years. Whilst the potential\nappetite for AccoyaTM within China is enormous, Accsys is very conscious that it\nis imperative that its intellectual property be fully respected in all its\nmarkets and this relationship gives us confidence regarding this issue'.\n\n\n\nDavid Popejoy, Managing Director of Skanfore said: 'The China market offers\nexceptional potential. China currently consumes huge volumes of tropical\nhardwood and despite vigorous economic growth, imported volumes of tropical\nhardwood are already beginning to fall a...