AXS Accsys Technologies Plc

RNS Number:8575T
Accsys Technologies PLC
28 March 2007



28th March 2007                                                 AIM: AXS



                     Accsys announces strategic partnership
                      and supply agreement with Celanese,
                   Celanese to make investment of Euro22 million


Accsys Technologies PLC ("Accsys" or "the Company") has signed a long term
exclusive supply agreement with Celanese Corporation ("Celanese"), the global
leader in acetyls, which has a market capitalization of $5 billion, and is 
quoted on the New York Stock Exchange (symbol 'CE').


Under the agreement, Accsys (www.accsysplc.com) will be able to ensure supply of
acetyls to the licensees of its proprietary Accoya(TM) wood production process,
wherever they are in the world. This will enable Accsys' licensees to
concentrate their investment spending on the core wood modification business and
is expected to accelerate the uptake of Accoya(TM) technology around the world.


Celanese (www.celanese.com) with net sales of US$6.7 billion (2006), is the
leader in the global acetyls market and is committed to maintaining its leading
position through growth and innovation. This agreement allows Celanese to
capture the growth in acetyls demand that Accsys' proprietary wood acetylation
technology is expected to generate. In addition, Celanese has taken an option to
evaluate and acquire Accsys' proprietary acetic anhydride production technology.


Celanese is further demonstrating its commitment to Accsys' business by
subscribing for new shares, subject to shareholder approval, representing
approximately 5.5% of Accsys' issued share capital (post event) at a 5% premium
to the closing share price on 27th March 2007. This equity transaction will
involve the acquisition of 8,115,883 newly issued shares at a price of Euro2.72 per
share, representing an investment in the Company of Euro22M ($29.5M). Celanese will
have an option to increase its ownership of Accsys to 29.9% in the future at the
market price at that time. If approved by Accsys' shareholders at an EGM, the
transaction at Euro2.72 per share values Accsys at approximately Euro400 million.


Willy Paterson-Brown, Executive Chairman of Accsys, commented: "This is a
significant transaction for Accsys and clearly demonstrates how far the Company
has come since listing on AIM in October 2005. The strategic partnership with
Celanese is the perfect fit, which guarantees supply of acetyls for our
Licensees, as well as our own operations in Arnhem. It also allows our Licensees
to focus their own capital investment on wood capacity, rather than chemical
support and, as a result, will have value for all concerned. We are delighted
that Celanese have chosen to take an equity stake in the Company, and welcome
their input on our Board of Directors."


Finlay Morrison, Vice President of Acetyl Intermediates at Celanese, added: "The
strategic partnership with Accsys is clearly a win-win situation. The potential
growth of Accsys over the next decade and the value that Celanese can add to
that growth will have a positive impact to both companies' performances. It is
clear that Accsys' Accoya(TM) technology creates a tremendous opportunity for
companies in the wood industry, as well as for architects, construction
companies and consumers who are looking for more environmentally sustainable
building materials."


Following the announcement earlier this month of commercial production of
Accoya(TM) wood at Accsys' 100% subsidiary, Titan Wood's (www.titanwood.com) new
30,000 m3 Arnhem facility, the Company's order books are virtually full through
to the end of 2007, with production committed into a wide range of different
product applications, from civil construction to joinery. The combination of
large-scale commercial production now underway with the security of supply of
acetyls being supplied by Celanese is expected to simplify and strengthen the
licence proposition, accelerating the take up of the technology by potential
licensees. The additional capital in the business will be focused on supporting
the growth of licensing, as well as further development of Accsys' proprietary
technologies, including wood fibre.


Willy Paterson-Brown added: "The completion of the agreement with Celanese
provides confidence in our technologies and a springboard for future commercial
development. The transaction is a major landmark for Accsys and will allow us to
review our entire chemical supply strategy in a new light. With successful
production in Arnhem, and supply of acetyls secure, we are now able to turn our
attention to licensing, which we had placed on hold while we negotiated terms
with Celanese. Although this will impact results to March 31st 2007, the first
full license should be signed in the Second Quarter and the several licence
options that are presently under negotiation are expected to mature,
accelerating our future growth."


All these agreements with Celanese are conditional upon Accsys' shareholders'
approval of the equity transaction. A Circular seeking approval, at an
Extraordinary General Meeting, will be dispatched to Accsys shareholders at the
beginning of April.



ENDS



For further information, please contact:

Accsys Technologies PLC     William Paterson-Brown,         +44 (0) 20 8122 9191
www.accsysplc.com           Executive Chairman

Collins Stewart Limited     Tim Mickley / Michael O'Brien   +44 (0) 20 7523 8000

Parkgreen Communications    Justine Howarth / Clare Irvine  +44 (0) 20 7851 7480



Notes to Editors


About Celanese

As a global leader in the chemicals industry, Celanese Corporation (NYSE: CE)
makes products essential to everyday living.  Our products, found in consumer
and industrial applications, are manufactured in North America, Europe and Asia.
Net sales totalled $6.7 billion in 2006, with approximately 60% generated
outside of North America. Known for operational excellence and execution of its
business strategies, Celanese delivers value to customers around the globe with
innovations and best-in-class technologies.  Based in Dallas, Texas, the company
employs approximately 8,900 employees worldwide. For further information about
Celanese, please visit www.celanese.com.

Titan Wood Limited (www.titanwood.com) is wholly owned subsidiary of the Accsys
Technologies PLC (www.accsysplc.com) group of companies. Accsys Technologies PLC
is listed on the London Stock Exchange AIM market under the symbol 'AXS'.

Wood Acetylation is a process, which increases the amount of 'acetyl' molecules
in wood, thereby changing its physical properties. The process protects wood
from rot by making it "inedible" to most micro-organisms and insects, without -
unlike conventional treatments - making it toxic. It also greatly reduces the
wood's tendency to swell and shrink, making it less prone to cracking and
ensuring that when painted it requires dramatically reduced maintenance.

Accoya(TM) wood (www.accoya.info) is produced using a patented process that
effectively converts sustainably grown softwoods and non-durable hardwoods into
what is best described as a 'new wood species'. Distinguished by its durability,
dimensional stability and, perhaps most importantly of all, its reliability (in
terms of consistency of both supply and quality), Accoya(TM) wood is particularly
suited to exterior applications where performance and appearance are valued.
Unlike most tropical and European hardwoods, its colour does not degrade when
exposed to ultraviolet light. Moreover, the Accoya(TM) wood production process
does not compromise the wood's strength or machinability. The combination of UV
resistance, dimensional stability, durability and retained strength means that
Accoya(TM) wood offers a wealth of new opportunities to architects, designers and
specifiers. For marine uses where weight is also important, Accoya(TM) wood for
the first time provides boat builders with a wood that is strong, lightweight,
durable and which retains its natural beauty for far longer.


ACCOYA is a registered trademark owned by Titan Wood Limited



                      This information is provided by RNS
            The company news service from the London Stock Exchange

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