Business
Commercial Agreements with Cerdia Produktions GmbH
Commercial Agreements with Cerdia Produktions GmbH.
About this update from Accsys Technologies Plc
[{"type":"text","content":"\n \n \n RNS Number : 8180D\n Accsys Technologies PLC\n 24 February 2020\n \n \n \n \n AIM: AXS\n \n \n Euronext Amsterdam: AXS\n \n \n \n \n \n 24 February 2020\n \n \n Accsys Technologies PLC\n (\"Accsys\", the \"Group\" or the \"Company\")\n \n Commercial Agreements with Cerdia Produktions GmbH\n(formerly known as Rhodia Acetow)\n \n \n \n Accsys, the fast-growing and eco-friendly company that combines chemistry and technology to create high performance, sustainable wood building products, announces that it has entered into an agreement with Cerdia Produktions GmbH (\"Cerdia\"), under which Accsys will take on responsibility for commercial activities under agreements with Cerdia relating to Accoya® wood, which will terminate on 1 April 2020 (the \"Termination Agreement\"). The original agreements, being a licence agreement entered into in 2012, alongside supporting sales and marketing, offtake and exclusivity agreements entered into in 2015, allowed for early termination in certain circumstances in November 2020, with the offtake agreement originally due to expire in December 2020. In bringing forward termination to 1 April 2020, Accsys will be able to sell Accoya® directly into central Europe and Scandinavia approximately 9 months earlier than previously provided for.\n Under the terms of the Termination Agreement, payments to Accsys include fees of €3.2 million, to be applied to and set-off against the loan from Cerdia agreed in 2015, which currently amounts to approximately €8.6 million. As a result, Accsys' net debt will be reduced and the Cerdia loan will remain in effect until maturity in 2025. \n Accsys is now liaising with European Accoya® customers and other stakeholders to ensure a smooth transition of direct Accoya® sales and marketing relationships from Cerdia, effective from 1 April 2020. \n With Accoya® demand continuing to exceed capacity, the Termination Agreement reflects Accsys' strategic plans to increase its own global manufacturing capacity and distribution network, with further expansion at its Accoya® production facility in Arnhem now in the advanced stages of planning, and discussions progressing with Eastman Chemical Company in relation to a potential new Accoya® plant in North America. The Termination Agreement also follows Cerdia's own renew...