Accsys Technologies Sees Sales Boost in Second Half Year

ACCSYS, THE MODIFIED WOOD building products manufacturer, in an update on its financial year ending 31 March 2023 reports growth in its Accoya modified wood product sales of 6% on the prior year at 63,344m³.

The results came as sales increased in the second half of the year by 64% on the first half, to volumes of 39,387m³ compared to 23,957m³ in H1.

Hull Plant Review

At the company’s Hull plant in the UK, manufacturing its MDF panel product Tricoya, Accsys is continuing with its review, assessing its economics and capabilities.

The business reports “all funding options remain under evaluation”, as discussions with potential third-party partners continue. This is as the Accsys board says it will “consider all relevant commercial factors in deciding whether or not to proceed with the Hull plant and if so, on what basis”.

Accsys Technologies

In the United States, Accsys reports it is making progress with the construction of the 43,000m³ Accoya plant in Kingsport, Tennessee with its partner, Eastman. However, mechanical completion has experienced some delay and cost inflation and as a result, commercial operations are now expected to commence in mid-2024.

Progress to date includes the completion of ground works, ongoing steelwork and main warehouse construction, installation of the reactors on site, placement of multiple large sub-contracts and procurement of more than 80% of major equipment. The company states, “both joint venture partners continue to be fully engaged in delivering this strategically important project”.

In Arnhem, Netherlands, growth in sales volumes reflect increased capacity at the plant located there, after returning to full production following the completion of a fourth reactor 4 in September, its new production and some unwinding of higher inventory levels. Fourth quarter production was the highest ever delivered at the plant.

The company expects it will deliver EBITDA moderately ahead of its previous guidance of doubling underlying EBITDA year on year.

With a net debt of €44m at 31 March 2023 the company achieved a reduction of €8m compared to 31 December 2022, driven by growing EBITDA and a focus on working capital management, including a reduction in inventory levels. Preliminary results for FY 2023 will be announced on 27 June 2023.

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