Accsys Technologies PLC AGM Statement (3942R)

TIDMAXS

RNS Number : 3942R

Accsys Technologies PLC

11 September 2014

AIM: AXS

NYSE Euronext Amsterdam: AXS

11 September 2014

ACCSYS TECHNOLOGIES PLC

("Accsys" or "the Company")

Annual General Meeting Statement

Accsys, the chemical technology group, focused on the acetylation of wood, announces that in advance of the Company's Annual General Meeting, to be held at 3pm this afternoon, its Chief Executive, Paul Clegg, has made the following comments:

"I am pleased to announce that last week we held our fourth Worldwide Accoya(R) wood sales conference in Dublin, Ireland, building on the momentum following our recently reported Accoya(R) revenue growth of 37 per cent to EUR9.2m for the quarter to 30 June 2014.

"The three day conference involved around 130 participants, an increase from 90 last year and included 74 participants from 46 of our existing or potential distributors and customers from 29 countries, together with representatives from our Accoya(R) licensee, Solvay.

"Medite, the manufacturers of Medite Tricoya, and a licensee of our joint venture, Tricoya Technologies Limited ('TTL') also attended together with Masisa, TTL's licence option holder in Latin America. The conference provided an opportunity for all participants to further understand the benefits of Tricoya and included a visit to Medite's facility in Clonmel.

"In August we were pleased to announce further progress with Solvay, which they also re-confirmed to our customers at the conference last week:

-- Freiburg was confirmed as the location of Solvay's first Accoya(R) plant, expected to be operational in first half of 2016;

-- Entered binding term sheet for a global cooperation agreement in respect of a three year non-exclusive global co-operation agreement to develop Accoya(R) under which Solvay will engage Accsys to carry out targeted marketing activities to develop the Accoya(R) market outside of Europe. Accsys has granted Solvay a non-exclusive global Accoya(R) licence option for defined available regions, reflecting Solvay's interest in Accoya(R) licensing outside of Europe, under conditions that reflect the improved acceptance of Accoya(R) in the market. In addition Solvay has granted Accsys the option to invest up to a substantial minority share in both the European project and in any future Accoya(R) production projects. This would allow Accsys to benefit from future manufacturing profits of any Accoya(R) manufacturing plants that Solvay may construct under licence; and

-- Full agreements and approval of the plant construction are expected to be approved by December 2014.

"In respect of Diamond Wood, we reported in July thatthe arbitration tribunal (the "Tribunal") delivered a 'First Partial Final Award' and ruling that, in response to Diamond Wood's claim for damages in excess of EUR100 million, Diamond Wood can only claim for limited damages, if any, up to a maximum of EUR250,000. However, the Tribunal also ruledthatthe licence agreement between the two parties is to continue. The Tribunal has yet to make an award in respect of each party's respective legal costs. The arbitration remains confidential and we look forward to providing further details in due course.

"We are in the process of settling on how to proceed with the various parties involved given our belief of the opportunity for Accoya(R) in the region."

Ends

For further information, please contact:

 
 Accsys Technologies               Paul Clegg, CEO                     via Blytheweigh 
  PLC                               Hans Pauli, COO 
                                    Will Rudge, FD 
                                   Nominated Adviser: Oliver 
                                    Cardigan 
                                    Corporate Broking: Christopher 
                                    Wilkinson                         [phone] 
 Numis Securities                   Ben Stoop                          1000 
                                                                      [phone] 
                                                                       3204 
                                                                       [phone] 
                                                                       658 
                                     Paul Weigh                        [phone] 
 Blytheweigh                         Alex Shilov                       027 
 
                                     Frank Neervoort                    [phone] 
 Off the Grid (The Netherlands)      Giedo Van Der Zwan                 [phone] 
 

Notes to editors:

Accsys Technologies PLC(www.accsysplc.com) is a chemical technology group focussed on the development and commercialisation of a range of transformational technologies based upon the acetylation of solid wood (Accoya(R) ) and wood elements (Tricoya(R) ) for use as class leading, environmentally sustainable construction materials. Accsys's primary focus is on the production of Accoya(R) wood and technology licensing via its subsidiary, Titan Wood Limited, which has manufacturing operations in Arnhem, the Netherlands (through its subsidiary Titan Wood B.V.), a European office in Windsor, United Kingdom, and an American office in Dallas, Texas (via its subsidiary Titan Wood, Inc). All group subsidiaries are ultimately 100% owned by Accsys and trade as Accsys Technologies. 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 by NYSE Euronext, under the symbols 'AXS'. Accsys' operations comprise three principal business units: (i) Accoya(R) wood production; (ii) technology development, focused on a programme of continuous development of and improvements to the process engineering and operating protocols for the acetylation of solid wood and the development of technology for the acetylation of wood elements; and (iii) the licensing of technology for the production of Accoya(R) wood and Tricoya(R) wood elements across the globe.

Accoya(R) wood (www.accoya.com) is produced using Accsys' proprietary patented acetylation technology, that effectively converts sustainably grown softwoods and non-durable hardwoods into what is best described as a "high technology wood". Distinguished by its durability, dimensional stability and, perhaps most importantly of all, its reliability (in terms of consistency of both supply and quality), Accoya(R) wood is particularly suited to exterior applications where performance and appearance are valued. Unlike most tropical and European hardwoods, its colour does not degrade when exposed to ultraviolet light. Moreover, the Accoya(R) wood production process does not compromise the wood's strength or machinability. The combination of UV resistance, dimensional stability, durability and retained strength means that Accoya(R) wood offers a wealth of new opportunities to architects, designers and specifiers. These benefits result in lower maintenance and total cost of ownership while using a higher sustainable and environmental responsible building material. For a full archive of Accoya(R) news, visit www.accoya.com/news.asp.

Tricoya(R) Wood Elements(www.tricoya.com) are produced using Accsys' proprietary technology for the acetylation of wood chips, and particles for use in the fabrication of wood based composites, including panel products. These composites demonstrate enhanced durability and dimensional stability which allow them to be used in a variety of applications that were once limited to solid wood or man-made products. Exploitation of Accsys' proprietary technology relating to Tricoya(R) Wood Elements is carried out through Tricoya Technologies Limited, a joint venture between Accsys and INEOS Industries Holdings Limited. Tricoya(R) Wood Elements are lauded as the first major innovation in the wood composites industry in more than 30 years.

Wood Acetylation is a process which increases the amount of 'acetyl' molecules in wood, thereby changing its physical properties. When carried out to a sufficient level throughout the wood, this process protects wood from rot by making it "inedible" to most micro-organisms and fungi, without - unlike conventional treatments - making it toxic. It also greatly reduces the wood's tendency to swell and shrink, making it less prone to cracking and ensuring that, when painted, it requires dramatically reduced maintenance.

Accsys Technologies is the trading name of Titan Wood Limited. ACCOYA(R), TRICOYA(R) and the Trimarque Device are registered trademarks owned by Titan Wood Limited ("TWL"), a wholly owned subsidiary of Accsys Technologies PLC, and may not be used or reproduced without written permission from TWL, or in the case of the Tricoya(R) registered trademark, from Tricoya Technologies Limited, a joint venture between TWL and INEOS Industries Holdings Limited with exclusive rights to exploit the Tricoya(R) brand.

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