REG - Zotefoams PLC - Zotefoams and Shincell Global Alliance

ZotefoamsAnnouncement

07/05/2024 07:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240507:nRSG3367Na&default-theme=true

RNS Number : 3367N  Zotefoams PLC  07 May 2024

 

Zotefoams plc

("Zotefoams" or "Group")

 

Zotefoams and Shincell Global Alliance

 

7 May 2024 - Zotefoams, a world leader in cellular materials, announces that
it has signed a Global Alliance Agreement with Suzhou Shincell New Materials
Co., Ltd ("Shincell") of Suzhou, China.

Shincell and Zotefoams are industry-leading foaming companies with
complementary technology and market interests. This global alliance matches
Zotefoams' 100-year history in nitrogen-expanded foams with Shincell's latest
innovations in foaming technology.

Shincell, based in Suzhou, China, was founded in 2019 by Dr Xiulei Jiang, who
has over 20 years' experience in physical-gas foaming research and technology.
Shincell is a company dedicated to developing sustainable foaming technologies
and manufacturing clean, environmentally friendly lightweight foam materials.
The company uses nitrogen and carbon dioxide gases commonly found in the air
to expand plastics and form a large number of micro and nano bubbles inside, a
purely physical foaming process.

The alliance consists of agreements on technology licensing from Shincell to
Zotefoams, development and market co-operation, and regional product
distribution agreements, where certain products from Shincell's unique
technology will be marketed alongside Zotefoams' existing and future product
range. With a shared commitment to sustainability and innovation, the two
companies will co-operate on product development and are confident that this
alliance is a significant step forward for the foaming industry.

Shincell's complementary technologies extend Zotefoams technical capability,
enabling a wider scope of products in both new and existing markets and
enhancing the Group's technology platform for new products to deliver growth.

Zotefoams will pay technology licensing fees of RMB 80million (approx. £9m,
including capitalised deal costs*) over the 5-year term of the agreement,
which will support the further development of the technology and Shincell
business.

 

Dr Jiang, Shincell CEO, comments, "This alliance is a great example of
combining cutting edge foaming technology and global marketing expertise to
not only enhance innovation efficiency but push environmental awareness to a
higher level. We are very optimistic that the collaboration with Zotefoams
will bear more sustainable fruits."

David Stirling, Zotefoams Group CEO, comments, "I am very impressed by Dr
Jiang and the technology developed by his Shincell company. Their goal of
environmentally friendly foaming using physical blowing agents aligns
perfectly with Zotefoams' vision and markets. This alliance is an exciting
opportunity to enhance the growth potential of our specialist foams business
with sustainable solutions."

 

* Zotefoams policy for amortisation of technology-related intangible assets
can be found in Note 2.(vi) of the 2023 Annual Report

 

-ENDS-

 

 

Enquiries:

 

 Zotefoams plc                         +44 (0) 208 664 1600
 David Stirling, Group CEO

 Gary McGrath, Group CFO

 IFC Advisory (Financial PR & IR)      +44 (0) 203 934 6630
 Graham Herring

 Tim Metcalfe

 Zach Cohen

 

 

About Zotefoams plc

Zotefoams plc (LSE - ZTF) is a world leader in cellular materials technology
delivering optimal material solutions for the benefit of society. Utilising a
variety of unique manufacturing processes, including environmentally friendly
nitrogen expansion for lightweight AZOTE(®) polyolefin and ZOTEK(®)
high-performance foams, Zotefoams sells to diverse markets worldwide.
Zotefoams uses its own cellular materials to manufacture T-FIT(®) advanced
insulation for demanding industrial markets. Zotefoams also owns and licenses
patented microcellular foam technology to reduce plastic use in extrusion
applications and for ReZorce(®) mono-material recyclable barrier packaging.

Zotefoams is headquartered in Croydon, UK, with additional manufacturing sites
in Kentucky, USA and Brzeg, Poland (foam manufacture), Oklahoma, USA (foam
products manufacture and conversion), Massachusetts, USA and Stilling, Denmark
(microcellular foam technology) and Jiangsu Province, China (T-FIT).

www.zotefoams.com (http://www.zotefoams.com)

AZOTE(®), ZOTEK(®), ReZorce(®) and T-FIT(®) are registered trademarks of
Zotefoams plc.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  ALLSSFFUMELSESI