Purchase of Assets for Accoya Color Production
Accsys, the fast-growing and eco-friendly company that combines chemistry and technology to create high performance, sustainable wood building products, announces that it has entered into a sale and purchase agreement with Lignia Wood Company Limited (“Lignia”) and its administrators, to acquire certain assets, equipment and technology at its 50,000 sq ft (4,650 sq m) manufacturing plant in Barry, Wales for a consideration of €1.2m, including approximately €0.5m for raw wood inventory.
Accsys will repurpose the equipment to convert Accoya® wood into its new Accoya® Color product. Accoya® Color combines the benefits of Accoya® wood with colour all the way through the wood from surface to core, achieved through a patented process developed over the last ten years. With limited initial production and supply possible, it has so far only been launched into two European markets.
The purchased assets will enable Accsys to grow production and availability of Accoya® Color more rapidly, accelerating the launch of the product into more geographic markets and for more product applications. Lignia, a modified wood company, had produced its modified wood products through a resin impregnation method; Accsys does not intend to continue production of Lignia products.
Accsys will operate the colouring process on the existing site in Wales under a new lease entered into with the landlord for the land and buildings, and with added expertise of former Lignia staff. Once repurposed and integrated, the site will be expected to be able to produce up to 12,500 m3 of Accoya® Color per annum with expansion in future being possible.
The acquired raw wood will be used for production of Accoya® at our plant in the Netherlands.
The purchase will be funded from Accsys’ existing cash resources and will enhance the product mix offered to customers, with an expectation of higher average selling price across the mix from the added value of Accoya® Color in particular from FY23. The integration of the assets with the existing Accoya® business will be led by a dedicated integration team working separately from Accsys’ other strategic projects.
Rob Harris, Accsys CEO, said:
“We are pleased to announce the purchase of these assets, which will enable us to meet the strong demand for our fast-growing Accoya® Color product. Since launching Accoya® Color in the DACH region in Europe last year, we have seen very strong demand from our customers and are looking forward to increasing its availability as a high value, highly desirable product. Onsite due diligence confirmed that these assets can be converted to provide cost-effective near-term expansion for Accoya® Color production. This is expected to allow us to accelerate our plans to grow Accoya® Color both in its current markets and into more markets as part of our ongoing global growth strategy.”
About Accsys Technologies PLC
Accsys (Accsys Technologies PLC) is a fast growing business with a purpose: changing wood to change the world. The company combines chemistry, technology and ingenuity to make high performance wood products that are extremely durable and stable, opening new opportunities for the built environment and giving the world a choice to build sustainably. Accsys transforms fast-growing, certified sustainable wood into building materials with characteristics that match or better those of man-made, intensely resource-depleting and heavily carbon-polluting alternatives. The company’s primary focus is on the production of Accoya® wood and Tricoya® wood elements, as well as technology licensing via its subsidiaries Titan Wood Limited and Tricoya Technologies Limited. Accsys has its head office in London, UK, production operations in Arnhem, the Netherlands, an American office in Dallas, Texas, and is constructing the world’s first Tricoya® plant in Hull, UK. Accsys is committed to a more sustainable world, and uses abundantly available wood sources that are certified as sustainable. With our business model already aligned with several UN Sustainable Development Goals, Accsys is currently working on identifying further strategic ESG priorities to have an even greater positive impact on the world. Any references in this announcement to agreements with Accsys shall mean agreements with either Accsys or its subsidiary entities unless otherwise specified. Accsys Technologies PLC is listed on the London Stock Exchange AIM market and on Euronext Amsterdam, under the symbols ‘AXS’. More information about Accsys can be found at www.accsysplc.com
Sarah Ogilvie – Investor Relations – email@example.com
Source: Accsys Technologies PLC