NASDAQ FIRST NORTH: CBM
26 April 2017
Cleantech Building Materials plc
Cleantech Building Materials and SOPO Group plan to build the first Accoya®factory in Asia
Cleantech Building Materials PLC (“Cleantech Building Materials”) is pleased to announce today its plan to build the first Accoya® Wood factory in China with Jiangsu Sopo Group (“SOPO”), a Chinese state-owned chemical group with 2016 revenues of approximately €1.5 billion. SOPO is amongst China’s top petrochemical companies and a “National High-Tech Enterprise” with approximately 4,000 employees and a vast chemical complex in Zhenjiang Jingang Industry Park, outside Shanghai.
SOPO currently has an annual capacity to produce 1.4 million tons of acetic acid, and its derivative product, acetic anhydride, which is the key chemical used in producing Accoya® wood. In preparation for the construction of an Accoya® wood factory at SOPO’s facilities, over the past six months engineering representatives from both companies have undertaken detailed joint studies, which are now at an advanced stage.
Cleantech Building Materials and SOPO are discussing ways to leverage the Chinese group’s extensive experience in building and operating chemical factories to reduce the time and cost required to build the proposed Accoya® wood factory.
SOPO and its local banking partners are also in discussions to participate in the equity and debt financing of the Accoya® wood factory. The start of construction of the new Accoya® wood factory in China is expected to begin at the end of 2017 upon completion of all final agreements between the parties and the securing of the required financing.
On December 23, 2016 Cleantech Building Materials acquired Diamond Wood China Ltd, a Hong Kong company with subsidiaries in Shanghai and Nanjing China, and the shares of Cleantech Building Materials were admitted to trading on the Nasdaq First North market in Copenhagen. Diamond Wood, the operating company, has an exclusive license from Accsys Technologies plc (AIM:AXS) to produce and sell Accoya® wood in China and the ASEAN countries.
Jason Wang, CEO of Cleantech Building Materials, said: “We are pleased to be able to further strengthen our relationship with SOPO through these ongoing discussions, which are at an advanced stage, and are excited by the plans to build our first Accoya® manufacturing facility in Asia.”
Greg Lee, Chairman of Diamond Wood China, said: “This is a significant step in the development of our business, and is further evidence of the fruits of our strategy to maximise returns from our technology license and commercial relations across China and Asia.”
Mr. Shao ShouYan, Vice President of SOPO Group said: “Accoya® is a premium, long-lasting wood with excellent market prospects in China. SOPO will be able to provide significant expertise in the construction and operation of the planned Accoya® factory, and will extend SOPO’s acetyls value chain to supply acetic anhydride, the key raw material used to produce Accoya®.”
THE DIRECTORS OF CLEANTECH BUILDING MATERIALS PLC ACCEPT RESPONSIBILITY FOR THE CONTENTS OF THIS ANNOUNCEMENT.
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