Accsys Technologies (AIM: AXS) has entered a distribution agreement with Enno Roggemann GmbH & Co to sell and distribute its Accoya wood into Germany and Poland, expecting sales of 40,000 cubic metres over the next five years.
Joint marketing activities will begin immediately with Enno Roggemann and Accoya jointly exhibiting at Fensterbau Frontale, an international trade fair for windows, doors and facades in Nuremberg at the end of March.
Accsys Technologies has now entered into a total of 17 distribution, agency and supply agreements worldwide, having secured 11 agreements since October 2009. The company also has working relationships with another 10 distributors and agents in key markets with presence in the US, Canada, the UK, Ireland, Switzerland, Austria, Italy, Greece, Norway and Denmark, as well as in India and South East Asia.
Roggemann expressed confidence that the product had a great potential for penetration in both the German and Polish markets.
“Whilst we have been working with Enno Roggemann for some time, we are thrilled that they have committed to taking Accoya sales to the next level in Germany and Poland. Global demand for Accoya wood continues to grow and our rapidly expanding network of distributors is testament to that. With distributors such as Universal Forest Products in the United States, Arnold Laver and James Latham in the UK and now Enno Roggemann in Germany and Poland, we are confident that Accsys is well placed for further growth as global markets begin to emerge from recession,” said Accsys chief executive Paul Clegg today.
Accsys has developed a process - called Wood Acetylation - to treat sustainable softwoods to give them properties demanded by end-users of more expensive woods including hardwoods. It makes revenues through the production of its proprietary Accoya wood at its plant in Arnhem in the Netherlands and technology licensing via its Titan Wood unit.
Accsys last month completed a €17 million fundraising that was announced in December 2009 to support production and sales of Accoya wood out of the plant in Arnhem.
In a trading statement last week, Accsys said its Arnhem facility continued to benefit from the process improvements implemented earlier in the financial year. This allowed it to meet the increasing demand from distribution partners such that sales volumes of Accoya wood for the period from October 1 2009 to January 31 2010 increased by 36 percent compared to the same period last year.
"We are also encouraged by the increased interest expressed by companies across the world to explore the possibilities of licensing our technologies to produce both Accoya wood and Tricoya panel products, although we are aware that many are at an early stage and may or may not be furthered by either party. We are continuing to work with our current licensees and our joint development partner, Medite, and look forward to reporting further progress," the group said last week.
Clegg also commented: "We are starting to see improvements in the trading environment and are making good progress on all fronts. The restructuring that was implemented earlier in our financial year is starting to show positive results and we continue to make improvements to best position the company for the challenges ahead as we exploit the markets for our products".
Disclosure: The author holds no positions in the company