5th Feb 2015 08:32
LONDON (Alliance News) - Environmental Recycling Technologies PLC saw its shares rise early Thursday after it said it had granted a non-exclusive licence for its patented powder impression moulding process to Earth Enterprises Inc in the US.
The licence allows for the manufacture and sale of flat sheet products within the US. Colorado-based Earth Enterprises will pay Environmental Recycling a licence and knowledge transfer fee of USD150,000 as well as an annual royalty based on the volume of products sold.
The initial scale of the Earth Enterprises powder impression moulding production plant is scheduled to produce 40,000 units a year, Environmental Recycling said, with built-in capacity to expand as sales increase. Earth Enterprises has secured a Colorado state capital grant of USD933,000 to invest in the machinery required for the powder impression moulding process, the company added.
"This is another positive step in the roll out of our flat sheet capability in North America where our existing licensee is focused on engineered product for specific industrial applications. Earth Enterprises is known for its focus on new manufacturing opportunities for materials that are normally viewed as being un-recyclable," Environmental Recycling Managing Director Lee Clayton said in a statement.
The company's shares were up 9.5% at 0.520 pence early Thursday, making it one of the best-performing stocks on the AIM All-Share index.
By Steve McGrath; [email protected]; @stevemcgrath1
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
ENRT.L