Business
UAE Rights & Expand Capacity
UAE Rights & Expand Capacity.
About this update from Accsys Technologies Plc
[{"type":"text","content":"\n Accsys Technologies PLC\n11 December 2007\n\n\n\n\n\n11th December 2007 AIM: AXS\n\n NYSE Euronext Amsterdam: AXS\n\n\n Accsys expands capacity volume and new\n exclusive territorial rights in UAE with Al Rajhi\n\n\n\nAccsys Technologies PLC ('Accsys' or 'the Company') announces that its 100%\nowned subsidiary, Titan Wood Ltd. ('Titan Wood'), has expanded its license\noption agreement with Al Rajhi Holdings W.L.L. ('Al Rajhi'), in respect of the\nrights to manufacture Accoya(R) in all six GCC1 (Gulf Cooperation Council)\ncountries to a nameplate Accoya(R) production capacity of 150,000 cubic metres.\n\nThe terms of the modified license option agreement include increasing the Option\nrights to 150,000 cubic metres of production capacity and adding the United Arab\nEmirates to the regional exclusivity agreed with Titan Wood.\n\nTerms also include a premium payment of €150,000 and four months exclusivity for\nall six GCC countries: Kuwait, Bahrain, Qatar, Oman, the Kingdom of Saudi Arabia\nand the United Arab Emirates. As announced previously, this exclusive period\nwill be extended on the exercise of the option. The terms of the license include\nlicense fee payments of €200 per cubic metre of nameplate capacity (€30,000,000\nin total) and €22 per cubic metre of production royalties for twenty years.\n\nWilly Paterson-Brown, Executive Chairman of Accsys commented, 'With Al Rajhi's\nstrength in the region and their belief in the potential for Accoya(R)\nthroughout the Gulf countries, the expansion of our agreement is the natural\nnext step in our relationship.'\n\nYaser Alsharifi, Head of Corporate Finance at Al Rajhi Holdings W.L.L., added, \n'Our sights are set on additional regions and higher capacity volumes. We\nanticipate exercising this option within the next 120 days and moving forward\nwith a full license agreement. We believe that Accoya(R) wood will be well\nreceived throughout the Middle East and beyond'.\n\nAl Rajhi Holdings W.L.L. currently owns approximately 5.8% of the Company's\nissued ordinary share capital.\n\n1 Gulf Cooperation Council countries: Kuwait, Bahrain, Qatar, Oman, Kingdom of\nSaudi Arabia and the United Arab Emirates.\n\n\n\nENDS\n\nFor further information, please contact:\n\nAccsys Technologies PLC William Paterson-Brown, +44 (0) 20 8144 2510\n Executive Chairman\n\nCollins Stewart Europe ...