Cleantech Building Materials plc is pleased to announce the engagement of DelMorgan Group LLC (“DelMorgan”), an internationally recognized investment banking firm, to support financing the Group’s intention to increase its planned China Accoya® Wood factory production capacity from 40,000 m3 to 240,000 m3 per annum. CBM’s average selling price during 2022 has been €1,966.85 euros per m3.
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The proposed additional financing is expected to be in the form of equity and take place in 2022. The amount of total financing required is still to be determined. In addition to allowing for the expansion of the factory, the financing will also be used to construct an advanced industrial system to fully recycle the output chemicals from the Accoya® manufacturing process, significantly decreasing the factory’s chemical purchases and increasing profit margins. This advanced industrial recycling system has the added benefit of further enhancing the Group’s high standards of sustainability and protection of the environment. Every cubic meter of Accoya® Wood produced sequesters approximately one metric ton of carbon dioxide.
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In March 2021 CBM’s Hong Kong based subsidiary, Diamond Wood China Ltd (“DWC”), entered into a joint venture, Jiangsu Dragon Wood, in which DWC has a 51% interest. Under the joint venture agreement, CBM will provide 25% of the financing, while the joint venture partners, Nantong Acetic Acid Company and Bank of Jiangsu, will provide the remaining 75%, in a combination of local debt and equity financing.
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