25th Mar 2008 07:01
Accsys Technologies PLC25 March 2008 25th March 2008 AIM: AXS NYSE Euronext Amsterdam: AXS Accsys Signs Full License Agreement in Middle East Accsys Technologies PLC ("Accsys" or "the Company") announces that its 100%owned subsidiary, Titan Wood Ltd. ("Titan Wood"), has signed a full licenseagreement with Al Rajhi Holdings W.L.L. ("Al Rajhi"), in respect of theexclusive rights to manufacture Accoya(R) wood in all six GCC1 (Gulf CooperationCouncil) countries for an annual nameplate Accoya(R) wood production capacity of150,000 cubic metres. The terms of the agreement, which follow Titan Wood's standard payment terms,provide for technology fees and annual royalties. Having already paid an optionfee of €150,000, Al Rajhi will make an immediate down payment of €2,850,000.Additional fees will be paid subject to the timing and phasing of theconstruction period, with royalty payments commencing upon commercialproduction, expected to start in 2010. Al Rajhi has exclusive rights for the region for a period of four years withrights to increase the length of exclusivity subject to committing to increasedAccoya(R) wood production licenses. Willy Paterson-Brown, Executive Chairman of Accsys commented, "We areunderstandably delighted to reach agreement with Al Rajhi for exclusive Accoya(R) wood production rights throughout the Gulf countries. We will now jointlyfocus on developing the market both within and beyond the region to explore theadditional potential of Accoya(R) wood". Yaser Alsharifi, Head of Corporate Finance at Al Rajhi Holdings W.L.L., added, "We are extremely excited by the potential of this transaction. We are alreadylooking at increased volumes and additional territories as we realise the valueof the exclusive nature of our agreement with Titan Wood. Our region is ripe forthis outstanding new product, Accoya(R) wood, which for the first time will beable to access a high quality, environmentally friendly modified wood topenetrate a very lucrative market". 1 Gulf Cooperation Council countries: Kuwait, Bahrain, Qatar, Oman, Kingdom ofSaudi Arabia and the United Arab Emirates. ENDS For further information, please contact: Accsys Technologies PLC William Paterson-Brown, +44 (0) 20 8150 8836/ Executive Chairman +44 (0) 20 8144 2510 Collins Stewart Europe Limited Tim Mickley / Michael O'Brien +44 (0) 20 7523 8000 Parkgreen Communications Justine Howarth / +44 (0) 20 7851 7480 Bex Sanders-Hewett Citigate First Financial B.V. Wouter van de Putte / Laurens Goverse + 31 (0) 20 575 4080 Notes to Editors: Al Rajhi Group Al Rajhi Holdings W.L.L. and Al Rajhi Partners (together 'Al Rajhi') represent the business interests of Sheikh Abdulrahman Saleh Al Rajhi and his immediate family in Saudi Arabia. Al Rajhi has substantial interests, comprising investments in financialservices, infrastructure, telecoms, utilities, real estate; oil and gas. Keyinvestments include Bank Al Bilad, DanaGas, Saudi Telecom, and Saudi Cement.Khalid al Rajhi, CEO of Al Rajhi, is a director of each of these companies. Al Rajhi Holdings W.L.L. currently owns approximately 6.5% of the Company'sissued ordinary share capital. Titan Wood Limited (www.titanwood.com) is a wholly owned subsidiary of theAccsys Technologies PLC (www.accsysplc.com) group of companies. AccsysTechnologies PLC is listed on the London Stock Exchange AIM market and onEuronext Amsterdam by NYSE Euronext, under the symbols 'AXS'. Accoya(R) wood (www.accoya.info) is produced using a patented process thateffectively converts sustainably grown softwoods and non-durable hardwoods intowhat is best described as a 'new wood species' via acetylation. Distinguished byits durability, dimensional stability and, perhaps most importantly of all, itsreliability (in terms of consistency of both supply and quality), Accoya(R) woodis particularly suited to exterior applications where performance and appearanceare valued. Unlike most tropical and European hardwoods, its colour does notdegrade when exposed to ultraviolet light. Moreover, the Accoya(R) woodproduction process does not compromise the wood's strength or machinability. Thecombination of UV resistance, dimensional stability, durability and retainedstrength means that Accoya(R) wood offers a wealth of new opportunities toarchitects, designers and specifiers. For marine uses where weight is alsoimportant, Accoya(R) wood for the first time provides boat builders with a woodthat is strong, lightweight, durable and which retains its natural beauty forfar longer. Wood Acetylation is a process, which increases the amount of 'acetyl' moleculesin wood, thereby changing its physical properties. The process protects woodfrom rot by making it "inedible" to most micro-organisms and insects, without -unlike conventional treatments - making it toxic. It also greatly reduces thewood's tendency to swell and shrink, making it less prone to cracking andensuring that when painted it requires dramatically reduced maintenance. ACCOYA(R) and the Trimarque Device are registered trademarks owned by Titan WoodLimited and may not be used or reproduced without written permission. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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