11th Dec 2007 07:01
Accsys Technologies PLC11 December 2007 11th December 2007 AIM: AXS NYSE Euronext Amsterdam: AXS Accsys expands capacity volume and new exclusive territorial rights in UAE with Al Rajhi Accsys Technologies PLC ("Accsys" or "the Company") announces that its 100%owned subsidiary, Titan Wood Ltd. ("Titan Wood"), has expanded its licenseoption agreement with Al Rajhi Holdings W.L.L. ("Al Rajhi"), in respect of therights to manufacture Accoya(R) in all six GCC1 (Gulf Cooperation Council)countries to a nameplate Accoya(R) production capacity of 150,000 cubic metres. The terms of the modified license option agreement include increasing the Optionrights to 150,000 cubic metres of production capacity and adding the United ArabEmirates to the regional exclusivity agreed with Titan Wood. Terms also include a premium payment of €150,000 and four months exclusivity forall six GCC countries: Kuwait, Bahrain, Qatar, Oman, the Kingdom of Saudi Arabiaand the United Arab Emirates. As announced previously, this exclusive periodwill be extended on the exercise of the option. The terms of the license includelicense fee payments of €200 per cubic metre of nameplate capacity (€30,000,000in total) and €22 per cubic metre of production royalties for twenty years. Willy Paterson-Brown, Executive Chairman of Accsys commented, "With Al Rajhi'sstrength in the region and their belief in the potential for Accoya(R)throughout the Gulf countries, the expansion of our agreement is the naturalnext step in our relationship." Yaser Alsharifi, Head of Corporate Finance at Al Rajhi Holdings W.L.L., added, "Our sights are set on additional regions and higher capacity volumes. Weanticipate exercising this option within the next 120 days and moving forwardwith a full license agreement. We believe that Accoya(R) wood will be wellreceived throughout the Middle East and beyond". Al Rajhi Holdings W.L.L. currently owns approximately 5.8% of the Company'sissued ordinary share capital. 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 8144 2510 Executive Chairman Collins Stewart Europe Limited Tim Mickley / Michael O'Brien +44 (0) 20 7523 8000Parkgreen Communications Justine Howarth / +44 (0) 20 7851 7480 Bex Sanders-HewettCitigate 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') representthe business interests of Sheikh Abdulrahman Saleh Al Rajhi and his immediatefamily 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. 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 is a registered trademark owned by Titan Wood Limited This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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