Alexium International Group (ASX:AJX, AX:AJX, OTC QX:AXXIY) is in current negotiations with one of the larger commission finishers in the U.S. to deliver production scale quantities of its Alexiflam™ Fire Retardant for scale up production work on FR finishes.
This potential customer has multiple finishing facilities in the U.S. and provides finishing treatments including FR to fabric producers in markets from transportation, construction, and medical to apparel, military and home furnishings.
Alexium is currently negotiating a one-year exclusive licence for the use of Alexiflam™ in commission finishing of decorative fabrics for the home furnishings sector, which may include co-branding and set price points.
Co-branding would greatly increase Alexium's brand recognition and exposure in decorative fabrics for suppliers and home furnishings for end users whilst assisting brand recognition into the transportation, contract, military and other adjacent markets.
This adds to its co-branding strategy with another potential customer in the outdoor tent market in the U.S. and Asia and with iTextiles for work wear in Europe.
Alexium hopes to complete negotiations in the near term and to be in position to name the new client publicly following the signing of the licence agreement.
FR formulation sales solely for decorative fabrics in the U.S. alone is part of the larger FR textiles market, currently estimated to be in excess of US$100 million.
This marks the first potential customer of Alexium considering the use of its FR products across a wide spectrum of different fabrics, not just a single purpose specific fabric.
"We believe this interest by a large commission finisher in exploring our product under an exclusive arrangement is a strong validation of the performance our products can provide and at price points that are clearly applicable across an extremely wide range of fabrics and markets," president Dirk Van Hyning said.
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