Business
Re Agreement
Re Agreement.
About this update from Zotefoams Plc
[{"type":"text","content":"\n Zotefoams PLC\n21 March 2006\n\n21 March 2006\n\n\n\n\n\nCommercial agreement between Zotefoams plc ('Zotefoams') and Sekisui Chemical\nCompany Limited and its subsidiaries ('Sekisui Group')\n\n\n\n\n\nWith immediate effect, Zotefoams and Sekisui Group have agreed to terminate\ntheir commercial agency relationships in Europe and North America. Sekisui will\ncontinue to act as distributor for Zotefoams' products in Asia until 30 April\n2006.\n\n\n\nDuring 2000 and 2001 Zotefoams entered into a number of worldwide sales and\nmarketing alliances for polyolefin foams with Sekisui Group, who act as\nexclusive agent and distributor for Zotefoams in Continental Europe (through\ntheir European subsidiary, Alveo AG ('Alveo')) and Asia respectively. Sekisui\nGroup also act as an agent for certain of Zotefoams' customers in North America\nthrough its American subsidiary, Voltek LLC.\n\n\n\nOn 15 December 2005 and on 14 March 2006, Zotefoams announced that it had, for\nsome time, been in negotiations with Sekisui Group in relation to certain of its\nobligations under two of these agreements. Zotefoams announced that while it was\nstill open to a resolution by other means, it had instigated arbitration\nproceedings.\n\n\n\nTermination of these arrangements was agreed subject to Zotefoams plc paying\nAlveo a reduced termination fee of euro 1.4 million as well as dropping all\ndisputes due to be heard in arbitration. Zotefoams will assume direct\nresponsibility for all customer matters in all regions with plans to increase\ndirect sales resource to support this, although it is envisaged separate\nagreements may be appropriate in Asia in the medium term.\n\n\n\nIn 2005, Zotefoams paid Sekisui Group approximately euro 1.5 million in agent's\ncommissions (principally to Alveo) under these arrangements. From 20 March 2006,\nno further commissions will be earned by Sekisui Group.\n\n\n\nZotefoams is pleased that these disputes have been resolved with Sekisui and\nlooks forward to working directly with its customers.\n\n\n\nEnquiries:\n\n\nZotefoams plc 0208-664-1600\nDavid Stirling, Managing Director\nClifford Hurst, Finance Director\n\nFinancial Dynamics Limited 0774-602-739 / 0207-831-3113\nSarah MacLeod / Deborah Scott\n\n\n\n\n This information is provided by RNS\n The company news service from the London Stock Exchange \n ","length":2568,"t...