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Alexium International Sales Streamline To Mexico And Central America

Alexium International Group's (ASX:AJX, AX:AJX, OTC QX:AXXIY) global revenue growth opportunity continues with the company now entering the Mexico and Central American markets.

The move comes through Outdoor Industrial Fabric Applications with Alexiflam NF™ Fire Retardant (NYSE:FR) Treatments.

The footprint is to accommodate a new customer's purchase order for a scale-up production run trial in the outdoor industrial fabric market.

The annual market for fire retardant formulations for cotton textiles in outdoor industrial fabrics is estimated at US$50 million.

The initial revenue opportunity for Alexiflam NF™ formulation has the potential for US$2 million to US$5 million annually.

Nicholas Clark, CEO and executive director, commented:

"This exciting development for Alexium not only establishes the value and performance of our Alexiflam NF™ series for natural fibers but also enables us to build a footprint in the Central American marketplace, as well as extending on the outdoor industrials market.

"What we are happy to see, is that our new customers continue to invest in Alexium by purchasing chemistry, whilst our existing customers are increasing their orders."

Potential market expansion

An additional benefit of Alexiflam NF is that it can also be used as an FR finish on cotton textiles blended with nylon, polyester, or other blends, which is a larger market again.

A $7 billion market

The fire retardant market includes sales of 40 million tonnes annually with an estimated market value of $7 billion in 2014, with some forecasts having the market growing to $10 billion by 2019.

Europe and North America account for close to half of this market.

Analysis

The demand for Alexium's Fire Retardant Treatments has now expanded to Mexico and Central America, further enhancing the company's potential sales pipeline.

The move is to accommodate a new customer's purchase order for a scale-up production run trial in the outdoor industrial fabric market.

This new semi-durable finish on industrial cotton fabric is applicable across various markets representing a very significant opportunity for Alexium with immediate revenues.

Growth potential:

There is also the ability to grow as the market moves towards environmentally friendly and performance enhancing fire retardant solutions.

This deal further adds to the sales and revenue pipeline growth for Alexium, which importantly expands across different products and countries, providing a diversified income.

Well-funded:

The company remains well-funded with $12 million in cash at the end of May 2015.

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