INEOS Technologies and Accsys Technologies form a 50:50 Joint Venture

INEOS Technologies and Accsys Technologies have formed a 50:50 Joint Venture to further develop and commercialise Tricoya® technology on a world wide basis. The new business will trade under the name of Tricoya® Technologies Ltd.

As part of the agreement Accsys will grant the Joint Venture exclusive global rights to its proprietary acetylation technology for the production and licensing of Tricoya® for use within medium density fibreboard (MDF), particle board and wood plastic composites.

The Tricoya technology gives engineered wood products, such as MDF, a level of durability and dimensional stability that is comparable with or superior to non-wood products, while offering all of the advantages of wood – including excellent mechanical and machining properties and a high strength to weight ratio. Significantly, Tricoya® enables MDF wood to be competitive with non-wood materials, opening up markets in a huge number of new applications.
INEOS Technologies will bring significant resources, including its process technology, licensing expertise and global reach to commercialise the Tricoya® process across the worldwide panel products market - currently estimated to be worth more than EUR 60 billion annually.

All future licensing agreements for Tricoya® wood elements will now be carried out by the new Tricoya® Joint Venture. Earnings generated by the new JV will be split to reflect the relative interests and contributions of the two parties. As part of this deal, INEOS Industries Holdings Limited has subscribed for new shares in Accsys and received a warrant instrument allowing the opportunity to purchase further shares at certain times during the course of the next four years. Further details linked to the formation of the JV remain confidential at this time.

Peter Williams Chief Executive Officer of INEOS Technologies says: “We are delighted to have joined Accsys in this new field. The outstanding durability and stability of Tricoya® offers the building industry valuable new options for the application of high-performance, cost-competitive, and more sustainable, wood based materials. Our skills complement those of our partner, and together we will realise important synergies for the new company. We are looking forward to the joint venture accelerating the commercialisation of this new materials technology around the world.”

Paul Clegg, Chief Executive Officer of Accsys, commented: "2012 is proving to be a year of tremendous progress for Accsys and this joint venture has confirmed the advances that we have made in recent years. Forming this partnership with INEOS, a global petrochemical and polymer player, and leader in the field of technology development and licensing, reinforces our ability to meet the expectations of our customers, partners and shareholders. We are confident that our combined resources will ensure that Tricoya becomes the ubiquitous product that its performance mandates it should. The investment that INEOS has made, both into the joint venture and separately as a new shareholder into Accsys, strengthens our position as the undisputed world leaders in wood modification technology and enhances our ability to deliver value from our technology platform.”

Accoya® wood production and licensing and all other acetylation technology shall continue to be exploited by Accsys outside of the scope of this JV. Accoya® - created via acetylated wood modification - matches or exceeds the durability and stability of tropical hardwoods.
ENDS.

Source: INEOS