Coil Signs Agreement to Leverage Its Technology and Its Brand in China
| PRESS RELEASE Brussels, 14 February 2024 (17.45) | World leader in aluminium anodising |
COIL SIGNS AGREEMENT TO LEVERAGE ITS TECHNOLOGY AND ITS BRAND IN CHINA
COIL, world leader in aluminium anodising, announces the signing of a collaboration agreement with a Chinese company to leverage its advanced technology in the PRC and Eastern Asia.
The agreement focuses on the construction of a new factory in Fuzhou, Jiangxi province, in the People's Republic of China. This plant will include the installation of a state-of-the-art continuous anodising line for the architectural market. The Chinese company has secured a comprehensive package of funding for the construction of the factory and working capital for the new business.
Under the terms of the agreement, the Chinese company will leverage COIL's advanced technology, including technical assistance and engineering support for the construction of the production line. All third-party purchases related to the construction of this line will be for the account of the Chinese company.
COIL will also grant the Chinese company an exclusive and permanent license to use the technology and the brands of COIL in the People's Republic of China, Southeast Asia, and Northeast Asia.
In return, COIL will receive upfront and milestone payments for the construction of the production line and the exploitation of its technology. Coil will receive royalties on future sales by the Chinese company. In addition, as part of the technological and commercial licensing agreement, Coil will acquire a 5% stake in the Chinese company.
COIL has been selling its products to customers in Asia for many years. However, the Company has not been able to create a business model to exploit the full potential of this market due to the long logistics chain and costs associated with supplying this market from Europe. By stocking high quality European anodising quality metal – homologated by Coil - in the PRC, the new company will be able to anodise at lower prices locally and ship rapidly to order. Further the new company will be able to establish and police the highest quality standards in the local market.
In a changing global environment, this collaboration agreement should help accelerate the development of the COIL brand in Asia and realize its significant potential through an adapted industrial and commercial model that creates value for COIL.
About COIL
COIL is the world's leading anodiser in the building and industrial sectors and trades under the ALOXIDE brand name.
Anodising is an electrochemical process (electrolysis) which develops a natural, protective oxide layer on the surface of aluminium and can be coloured in a range of UV-proof finishes. It gives the metal excellent resistance to corrosion and/or reinforces its functional qualities. Anodising preserves all the natural and ecological properties of aluminium; it retains its high rigidity and excellent strength-to-weight ratio, its non-magnetic properties, its exceptional resistance to corrosion. The metal remains totally and repeatedly recyclable through simple re-melting. Anodised aluminium is used in a wide variety of industries and applications: architecture, design, manufacturing, and the automotive sector.
COIL deploys an industrial model that creates value by leveraging its unique know-how, its operational excellence, the quality of its investments and the expertise of its people. COIL has around 110 employees in Belgium and Germany and generated a turnover of €21,8 million in 2023.
Listed on Euronext Growth Paris | Isin: BE0160342011 | Reuters: ALCOI.PA | Bloomberg: ALCOI: FP
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Contact
| COIL Tim Hutton | Chief Executive Officer | Tel.: +32 (0)11 88 01 88 | CALYPTUS Cyril Combe | Tel.: +33 (0)1 53 65 68 68 |
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