Cleantech Building Materials PLC plans to build the first Accoya® Wood factory in China with Jiangsu Sopo Group (“SOPO”), a Chinese state-owned chemical group.
SOPO currently has an annual capacity to produce 1.4 million tons of acetic acid, and its derivative product, acetic anhydride, which is the key chemical used in producing Accoya® wood. In preparation for the construction of an Accoya® wood factory at SOPO’s facilities, over the past six months engineering representatives from both companies have undertaken detailed joint studies, which are now at an advanced stage.
Cleantech Building Materials and SOPO are discussing ways to leverage the Chinese group’s extensive experience in building and operating chemical factories to reduce the time and cost required to build the proposed Accoya® wood factory.
SOPO and its local banking partners are also in discussions to participate in the equity and debt financing of the Accoya® wood factory. The start of construction of the new Accoya® wood factory in China is expected to begin at the end of 2017 upon completion of all final agreements between the parties and the securing of the required financing.
