Accsys Technologies (AIM/EURONEXT: AXS) announced it had signed an agreement with Diamond Wood China for the full license to manufacture
Accoya wood in The People's Republic of China ('PRC') for an annual nameplate capacity of 500,000 cubic metres of production.
Diamond Wood will pay Accsys Technologies an initial sum of €9.5 million for three years exclusivity. An additional €90 million in aggregate, will be payable at certain milestones, including approval, planning, construction and commissioning periods of each project.
The payments are in line with Accsys Technologies standard €200 per cubic metre of nameplate capacity. Diamond Wood will also pay €22 per cubic metre of production royalties for twenty years.
Willy Paterson-Brown, Executive Chairman of Accsys commented, 'We are obviously delighted to announce our first full license agreement, with Diamond Wood China. This is not only the culmination of a huge amount of work by both parties, but it is also a step-change for Accsys as it underwrites significant licensing volume and propels Accsys into new levels of commercial expectations.'