Diamond Wood China Limited and Nantong Acetic Acid Chemical Company Ltd Announce Joint Venture
July 09, 2019 at 06:14 am EDT
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Cleantech Building Materials PLC announced the signing of a legally binding Investment Agreement to build the first Accoya® wood factory in China. Under the terms of the agreement, a Joint Venture will be formed between CBM’s subsidiary, Diamond Wood China Limited (“Diamond Wood China”) and Nantong Acetic Acid Chemical Company Ltd. (“NTAAC”), an international Chinese chemical group, to construct an Accoya® factory with an initial design capacity of 160,000 m3, and ultimate target annual capacity of 480.000 m3. The initial financing is for circa USD 50 million. Accoya® wood is currently only available from the Titan Wood factory in Arnhem, Netherlands, and is principally sold to small construction projects. The new CBM-NTAAC Joint Venture plans to industrialise the production of Accoya® wood on a large scale. By leveraging significantly lower costs in chemical, wood and other key inputs, the planned China Joint Venture will supply Accoya® wood to high-volume wood-product manufacturers in China and Asia, which dominate global markets in windows, doors, flooring and outdoor furniture. Representatives from CBM and NTAAC have been in discussions for over twelve months to conduct a feasibility study for an Accoya® wood factory in China, and to work through the engineering, government permitting and contractual details of the project.
Nantong Acetic Acid Chemical Co., Ltd. is principally engaged in the research and development, production and sale of fine chemicals. The Company's products include food and feed additives, such as potassium sorbate and dehydroacetic acid; pharmaceutical and pesticide intermediates, such as dehydroacetic acid and cyanopyridine, and dye and pigment intermediates, such as acetoacetanilide series products. Products are mainly used in the preservation of food and feed, production of pharmaceutical and pesticide, as well as production of dye and pigment. In addition, the Company also produces and sells other organic chemicals.