Axe descends on woodchip plant despite previous £14.6m funding deal
Accsys, a supplier of wood building materials, says it will discontinue the Tricoya plant in Saltend, Hull, owned by Tricoya UK – a wholly owned entity of Accsys set up for the construction and operation of the facility.
The Accsys Board says it has “thoroughly evaluated all available strategic and funding options for Tricoya UK.”
This review has now been completed and the Board has decided it is in the best interests of Accsys and its shareholders to not go ahead with the Tricoya plant.
Accsys said it had struck a new loan agreement with Tricoya UK, under which Accsys would lend up to €17m/£14.6m to Tricoya UK to be used towards the plant construction project alongside existing funding in place.
But today, Accsys confirms that a final exceptional non-cash impairment charge of around €20m/£16.8m and an exceptional cash cost of circa €4.5m/£3.8m will be recognised in the company’s H1 FY25 results for the discontinuation and winding up of the Tricoya plant.
Accsys adds that it retains the intellectual property for Tricoya and will continue producing materials for the Tricoya product range from its production site in Arnhem, in The Netherlands to meet growing demand from existing customers.
Dr Jelena Arsic van Os, CEO of Accsys Technologies PLC, said: “Whilst this is a difficult decision, the Board is confident this is the right course of action for the company and its shareholders.
“Discontinuing the Hull plant further de-risks and simplifies our business and enables us to fully focus on maximising returns from our existing assets.
“Today’s actions, alongside our expansion in Arnhem and newly opened Kingsport facility, underpin our confidence in delivering profitable growth as we progress towards our target of 100,000m³ production by the end of FY27.”
