The licenced territory includes 47 states in the Council of Europe, but excluding Belgium, Ireland, Luxembourg, the Netherlands and the United Kingdom which are reserved to Accsys. The licence agreement also grants Solvay the option to build additional Accoya® production plants in Europe, with the first plant having a total capacity of 63,000 cubic metres of finished Accoya® output, expected to be operational in the course of 2016.
In return, Accsys will receive a series of licence payments, which have already commenced and will be made during the phased construction of the plant, and with royalty payments per volume of Accoya® produced thereafter.
The two companies have also signed an amendment to the licence agreement which now includes the possibility of Solvay constructing the plant in Arnhem on land Accsys currently owns, adjacent to the Company’s existing manufacturing facility and in a phased manner. Solvay is now reviewing the two options for the optimal plant location, being either Arnhem, the Netherlands or Freiburg, Germany.
The decision on the plant and its location will be made by Solvay in the next few months.
In addition the two companies have agreed to examine the best ways to provide coordinated operational and maintenance services to both plants, and to review the best form of cooperation between the two companies going forward.
Further to the licence agreement becoming unconditional, Accsys and Solvay have entered a transitional phase in which Accsys will continue to sell to Accoya distributors in Solvay’s region while working to transfer the relationships to Solvay.
Commenting, Paul Clegg, CEO of Accsys, said: “I am delighted that we have been able to formalise what has been a highly progressive, long standing relationship with Solvay. Finalising the licence agreement with a company of Solvay’s undoubted reputation and status is an excellent endorsement of our proprietary industrial process and Accoya® wood.
“Our ongoing discussions with Solvay hold the potential to result in an extended business offering from Accsys, with the licence agreement enhanced through operational and maintenance contracts that would add an additional revenue stream to our business.
“While no final decision has been taken, locating the plant in Arnhem could provide financial and operational advantages to both parties.”
