Accsys Technologies, the manufacturer of the world-leading modified wood, Accoya, will significantly increase its production capacity over the next five years thanks to a licensing, financing and marketing agreement announced between Accsys Technologies and Solvay Acetow.
Under the new agreement, Accsys is set to double the existing manufacturing capacity of its plant in Arnhem, Netherlands, to produce 80,000 cubic metres of Accoya per annum. An initial increase of 20,000 cubic metres is expected to come on stream as early as mid-2017, funded via fees and loans from Solvay together with Accsys’ resources.
As part of the deal, Solvay has agreed to purchase under an off-take agreement a minimum of 76,000 cubic metres of Accoya from the Arnhem plant over the next five years for distribution within Solvay’s licensed European markets.
The deal also provides for Accsys to deliver sales and marketing support to Solvay in respect of Solvay’s exclusive licensed territories, and for Accsys to market and sell directly into more than 20 European countries previously ear-marked exclusively for Solvay.
As global demand for Accoya increases, the enhanced collaboration between Accsys and Solvay is set to reassure customers across Europe and the rest of the world about the long-term supply of Accoya.
Welcoming the new agreement between the two companies, Paul Clegg, CEO of Accsys said: “We are pleased to be able to cement our relationship with Solvay through this agreement to expand our Accoya manufacturing capacity and Solvay’s commitment to purchase significant volumes from Accsys over the coming years. This is an exciting step in the development of our business and is further evidence of the fruits of our strategy to maximise returns from our technology platform and resultant product offerings.
“Our new agreement will allow the market development of Accoya to continue as well as optimising the roll-out of manufacturing capacity. This will increase the certainty of supply for Accoya customers and users whilst allowing Accsys to continue to develop global markets effectively, building on the expertise that it has developed over the last few years.”
Continued global demand for Accoya has resulted in increased revenue growth of 21% to €26.3 million for Accsys Technologies and EBITDA of €1.3 million to the end of September 2015, as revealed in the company’s six months interim results, published on 30 November.
Paul Clegg added: “These latest set of results confirms that our manufacturing process generates increasing returns and gives us greater confidence to progress with our objective of ensuring we maintain a share in this new manufacturing capacity. Our enhanced relationship with Solvay will enable us to ensure that the ever-increasing demand for our products can be met in the future.”
Created using Accsys Technologies’ propriety acetylation technology, Accoya delivers a range of performance improvements including outstanding levels of durability and dimensional stability.
Made from FSC or other certified woods from legal, manageable and sustainable forests, Accoya is an attractive wood product which is Cradle to Cradle Gold certified and perfect for a variety of uses from windows and doors to external cladding, structural projects and decking.
