Yahoo Finance Cleantech Building Materials: Signing of Comprehensive Investment Agreement with Nantong Government
18 May 2021
CLEANTECH BUILDING MATERIALS PLC, NASDAQ FIRST NORTH GROWTH MARKET, COPENHAGEN
TICKER: CBM
Cleantech Building Materials plc
Signing of Comprehensive Investment Agreement with Nantong Government
Cleantech Building Materials plc (“CBM” or the “Company” or the “Group”) is pleased to announce that the Group’s joint venture company in China, Jiangsu Dragon Wood (“Dragon Wood”), has signed a long-term contract for land, utilities, and various tax incentives with the Nantong local government’s Administration Committee of Jiangsu Rudong Yangkou Port Economic Development Zone (the “Investment Agreement”).
Dragon Wood is the joint venture company owned 51% by CBM’s subsidiary Diamond Wood China Ltd. and 49% by Nantong Acetic Acid Company (“NTAAC”).
Under the terms of the binding Investment Agreement, Dragon Wood will acquire a parcel of land in the Nantong chemical industrial zone of approximately 16 hectares for circa €6 million. The Company plans to have its first supply of China-produced Accoya® Wood available for construction firms and manufacturers of wood products by early 2023. The factory will initially produce 40,000 m3 of Accoya® Wood. The factory will be built on a plot of land adjacent to Shanghai, and is large enough to accommodate 480,000 m3 of Accoya® Wood annual production.
In addition to the terms of the land purchase, the Investment Agreement also details the local government’s committed provision of utilities and tax incentives.
Accoya® branded wooden products - such as windows, doors, decking and siding - are enjoying widespread acceptance in the European and US markets, as well as in China and Asia. It is expected that the Group’s regional manufacturer clients will be increasingly asked to fulfill that demand.
On 31 March 2021, CBM announced the signing of a joint venture agreement with NTAAC to build the first Accoya® Wood factory in Asia. Under that joint venture agreement, the equity and debt financing terms were agreed for the first phase of the Dragon Wood factory.
THE DIRECTORS OF CLEANTECH BUILDING MATERIALS PLC ACCEPT RESPONSIBILITY FOR THE CONTENTS OF THIS ANNOUNCEMENT.
Further Enquiries:
Cleantech Building Materials plc | info@cbm-plc.com |
Keswick Global AG (Certified Adviser) | info@keswickglobal.com |
IFC Advisory Limited (Financial PR) | +44 20 3934 6630 |
The information communicated in this announcement is “inside information” for the purposes of article 7 of the Market Abuse Regulation 596/2014.
