UAE Rights & Expand Capacity
Accsys Technologies PLC
11 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 license
option agreement with Al Rajhi Holdings W.L.L. ('Al Rajhi'), in respect of the
rights 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 Option
rights to 150,000 cubic metres of production capacity and adding the United Arab
Emirates to the regional exclusivity agreed with Titan Wood.
Terms also include a premium payment of €150,000 and four months exclusivity for
all six GCC countries: Kuwait, Bahrain, Qatar, Oman, the Kingdom of Saudi Arabia
and the United Arab Emirates. As announced previously, this exclusive period
will be extended on the exercise of the option. The terms of the license include
license fee payments of €200 per cubic metre of nameplate capacity (€30,000,000
in total) and €22 per cubic metre of production royalties for twenty years.
Willy Paterson-Brown, Executive Chairman of Accsys commented, 'With Al Rajhi's
strength in the region and their belief in the potential for Accoya(R)
throughout the Gulf countries, the expansion of our agreement is the natural
next 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. We
anticipate exercising this option within the next 120 days and moving forward
with a full license agreement. We believe that Accoya(R) wood will be well
received throughout the Middle East and beyond'.
Al Rajhi Holdings W.L.L. currently owns approximately 5.8% of the Company's
issued ordinary share capital.
1 Gulf Cooperation Council countries: Kuwait, Bahrain, Qatar, Oman, Kingdom of
Saudi 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 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 financial
services, infrastructure, telecoms, utilities, real estate; oil and gas. Key
investments 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 the
Accsys Technologies PLC (www.accsysplc.com) group of companies. Accsys
Technologies PLC is listed on the London Stock Exchange AIM market and on
Euronext Amsterdam by NYSE Euronext, under the symbols 'AXS'.
Accoya(R) wood (www.accoya.info) is produced using a patented process that
effectively converts sustainably grown softwoods and non-durable hardwoods into
what is best described as a 'new wood species' via acetylation. Distinguished by
its durability, dimensional stability and, perhaps most importantly of all, its
reliability (in terms of consistency of both supply and quality), Accoya(R) wood
is particularly suited to exterior applications where performance and appearance
are valued. Unlike most tropical and European hardwoods, its colour does not
degrade when exposed to ultraviolet light. Moreover, the Accoya(R) wood
production process does not compromise the wood's strength or machinability. The
combination of UV resistance, dimensional stability, durability and retained
strength means that Accoya(R) wood offers a wealth of new opportunities to
architects, designers and specifiers. For marine uses where weight is also
important, Accoya(R) wood for the first time provides boat builders with a wood
that is strong, lightweight, durable and which retains its natural beauty for
far longer.
Wood Acetylation is a process, which increases the amount of 'acetyl' molecules
in wood, thereby changing its physical properties. The process protects wood
from rot by making it 'inedible' to most micro-organisms and insects, without -
unlike conventional treatments - making it toxic. It also greatly reduces the
wood's tendency to swell and shrink, making it less prone to cracking and
ensuring 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 Exchange