Key details of the licence agreement are:
- TTL has granted Medite a licence to build and operate a plant to manufacture an initial capacity of 30,000 metric tonnes per annum of Tricoya® (equivalent to approximately 42,000 cubic metres of Tricoya® MDF panels), with a time limited option to increase capacity upon payment of additional fees.
-Medite has secured exclusive rights to market and sell Tricoya® MDF in Ireland, The Netherlands and the United Kingdom and non-exclusive rights to market and sell Tricoya® MDF or Tricoya® wood elements, subject to certain restrictions, in other territories.
-The licence is conditional on Medite obtaining approval from its Board of Directors prior to proceeding with construction of the plant; Board approval is targeted for mid-2014 with mechanical completion of the plant targeted by the end of 2015.
- The licence has been granted in return for a series of technology-based licence payments that Medite will begin making to TTL upon signature of the agreement, and royalty fees payable per metric tonne of production.
-TTL is responsible for producing a detailed engineering plan, called a Process Design Package (‘PDP’), that scopes out the core areas of the plant; part of the PDP is expected to be delivered prior to the licence becoming unconditional following Medite Board approval, with the final PDP delivered after approval.
- Medite will provide, in exchange for certain conditional future payments from TTL, both technical support services and, if required, a guaranteed proportion of its output to support other prospective Tricoya® licensees
It is anticipated that Accsys will provide significant and increasing volumes of acetylated material during the pre-start-up period, both to support Medite’s market development and to enable Medite to provide seeding material for other prospective licensees in different regions.
Commenting, Paul Clegg, CEO of Accsys and Chairman of TTL, said: “Our relationship with Medite is long standing and I am delighted that TTL has been able to cement it by formalising this licence agreement. The work carried out and sales volumes achieved by Medite have already proved there is a strong and growing market for Tricoya® and I look forward to a continuing successful collaboration with Medite as we move towards the licence becoming unconditional and plant construction commencing.”