19th Sep 2024 13:08
(Alliance News) - Accsys Technologies PLC on Thursday said that it will discontinue the Tricoya plant in Hull, which is owned by Tricoya UK Ltd.
Accsys is a London-based wood building products manufacturer. Tricoya is a wholly owned entity of Accsys, set up for the construction and operation of the Tricoya plant.
The decision to close the plant was taken following a review.
A final exceptional non-cash impairment charge of around EUR20 million, and an exceptional cash cost of around EUR4.5 million, will be recognised in the company's financial 2025 first half results.
Accsys retains the intellectual property for Tricoya and will continue producing materials for the Tricoya product range from its production site in Arnhem
"Whilst this is a difficult decision, the board is confident that this is the right course of action for the company and its shareholders," said Chief Executive Officer Jelena Arsic van Os.
"Discontinuing the Hull plant further derisks and simplifies our business and enables us to fully focus on maximising returns from our existing assets. Today's actions, alongside our expansion in Arnhem and newly opened Kingsport facility, underpin our confidence in delivering profitable growth as we progress towards our target of 100,000 cubic metres production by the end of FY27."
Shares in Accsys Technologies were trading 2.1% lower at 52.00 pence each in London on Thursday afternoon.
By Holly Beveridge, Alliance News senior reporter
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