LONDON – Accsys Technologies PLC, an environmental science and technology company, has signed a comprehensive heads of terms for a 50/50 joint venture agreement with INEOS, a global manufacturer of chemicals, to develop and commercialize Tricoya wood elements technology. The heads of terms, which are not legally binding, outlines that all future licensing agreements for Tricoya wood elements for use within MDF, particleboard and wood plastic composites will be entered by a new joint venture between Accsys and INEOS.
Upon completion of the agreement, INEOS will add significant resources, licensing and product development expertise and global reach to increase Tricoya’s penetration into the growing worldwide panel wood products market. In addition, INEOS will make a significant investment in the joint venture over the initial three years and will in addition subscribe for new equity in Accsys. All revenue generated by the joint venture will be split between both parties taking into account the value that each brings to the venture, including the significant IP value contributed by Accsys. Accsys will continue to produce and license all other acetylation technology including Accoya® outside of the scope of the joint venture.
Tricoya is based on the same proprietary acetylation technology used to create Accoya wood, the world’s first commercially available acetylated wood. The process, studied by scientists for more than 80 years, alters the wood’s reaction with water by permanently replacing free hydroxyls within the wood with stable acetyl groups that will not bond with water. Acetyl groups are naturally present in all wood species, which means that nothing toxic is added into the wood. The altered cell structure of the wood makes it an unrecognizable food source, preventing fungal decay and insect attack, as well as increasing its strength and dimensional stability. All Accoya wood comes from sustainable certified sources including FSC- and PEFC-certified forests.
"Our heads of terms is an important step forward for Accsys Technologies and represents a major commitment by INEOS,” said Paul Clegg, CEO of Accsys Technologies. “It also demonstrates INEOS’ recognition of Tricoya’s growth potential and improves the likelihood for commercial success. The investment by both companies will greatly facilitate the roll-out of new license agreements and support long-term revenue growth.”
Currently, Medite Europe Ltd manufactures Tricoya as an MDF product with durability and stability properties for exterior use. It is suitable for a variety of applications including siding, facades, signage, and much more.
This new agreement follows many recent and global growth announcements for Accsys Technologies, including an Accoya wood conditional license agreement with Solvay-Rhodia, the launch of Medite® Tricoya® with Coillte Panel Products in Europe, a Tricoya option license agreement in Latin America and a strategic collaborative relationship with BP.
Accsys Technologies PLC is listed on the London Stock Exchange AIM market and on Euronext Amsterdam under the symbols 'AXS'. Its products are available throughout North America, Europe, Asia and many other part of the world through a network of distributors. For more information about Accsys Technologies and its products, visit www.accsysplc.com.
Source: Accsys Technologies