21st Mar 2006 14:37
Zotefoams PLC21 March 2006 21 March 2006 Commercial agreement between Zotefoams plc ("Zotefoams") and Sekisui ChemicalCompany Limited and its subsidiaries ("Sekisui Group") With immediate effect, Zotefoams and Sekisui Group have agreed to terminatetheir commercial agency relationships in Europe and North America. Sekisui willcontinue to act as distributor for Zotefoams' products in Asia until 30 April2006. During 2000 and 2001 Zotefoams entered into a number of worldwide sales andmarketing alliances for polyolefin foams with Sekisui Group, who act asexclusive agent and distributor for Zotefoams in Continental Europe (throughtheir European subsidiary, Alveo AG ("Alveo")) and Asia respectively. SekisuiGroup also act as an agent for certain of Zotefoams' customers in North Americathrough its American subsidiary, Voltek LLC. On 15 December 2005 and on 14 March 2006, Zotefoams announced that it had, forsome time, been in negotiations with Sekisui Group in relation to certain of itsobligations under two of these agreements. Zotefoams announced that while it wasstill open to a resolution by other means, it had instigated arbitrationproceedings. Termination of these arrangements was agreed subject to Zotefoams plc payingAlveo a reduced termination fee of euro 1.4 million as well as dropping alldisputes due to be heard in arbitration. Zotefoams will assume directresponsibility for all customer matters in all regions with plans to increasedirect sales resource to support this, although it is envisaged separateagreements may be appropriate in Asia in the medium term. In 2005, Zotefoams paid Sekisui Group approximately euro 1.5 million in agent'scommissions (principally to Alveo) under these arrangements. From 20 March 2006,no further commissions will be earned by Sekisui Group. Zotefoams is pleased that these disputes have been resolved with Sekisui andlooks forward to working directly with its customers. Enquiries: Zotefoams plc 0208-664-1600David Stirling, Managing DirectorClifford Hurst, Finance Director Financial Dynamics Limited 0774-602-739 / 0207-831-3113Sarah MacLeod / Deborah Scott This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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