Tricoya Plant Construction Update
Accsys, the fast-growing and eco-friendly company that combines chemistry and technology to create high performance, sustainable wood building products, today announces an update regarding the final stages of construction towards commercial operation of the new Tricoya® plant in Hull, UK, by Tricoya UK Limited (“Tricoya UK”), Accsys’ joint venture in relation to the Hull plant.
In June 2021 Accsys announced that it had taken over the project to complete the final stages of plant construction and was evaluating the most effective ways to do this, optimising the associated impacts on costs and timelines.
Following an extensive gap analysis to review and validate the remaining works, costs, timeline and people required to complete the project, Accsys is now able to provide an updated outlook for the completion of the project:
– The plant is anticipated to be commercially operational by July 2022.Work is ongoing to potentially accelerate achievement of this milestone: The remaining final stages of the works are being directly project managed by Tricoya UK with highly-experienced internal and recently-added people and resources, without requiring the appointment of another lead EPC contractor. Third-party expertise and support will be brought in as and when required to complete works safely and quickly. Various workstreams have safely re-commenced on the site with a significant increase in our own project team, changes to project governance, and the engagement and remobilisation of key mechanical, electrical and civil contractors.
– Demand from the large addressable market for Tricoya® continues to be strong, as seen in the buoyant sales previously reported. We continue to expect that, once operational, the plant’s production will ramp-up to full capacity over approximately three years.
– Following the purported termination of the EPC contract in June 2021 by Tricoya UK’s former EPC contractor, Engie Fabricom UK Limited (‘EFAB’), a Settlement Agreement has been entered into between Tricoya UK and EFAB. Subject to the terms of this agreement, the parties have agreed to settle and release each other from liability for claims against each other under the EPC contract, including any claims in respect of COVID-19 and outstanding contractual payments.
– The total project capital cost is expected to be an additional €9m to €15m more than previously anticipated. The additional costs are largely due to the extended project duration, including the previously-reported engineering changes, delays due to COVID-19, and time and recovery actions resulting from past management of and demobilisation from the site. The costs also reflect the settlement agreement with EFAB. As a result, the total cumulative project capital cost for the plant is now anticipated to be €90m to €96m.
– Accsys remains committed to the safe completion and operation of the plant to realise the potential of the Tricoya® product’s target 40% gross margin, large market opportunity, and ongoing high demand.
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
Matthew O’Keeffe – FTI Consulting – Media Contact – +44 (0) 20 3727 1340
Source: Accsys Technologies PLC