Neo Industrial Plc STOCK EXCHANGE RELEASE July 31, 2012 at 2.00 pm
Carbatec Ltd, the technology company of Neo Industrial’s Viscose Fibre Segment, has signed a letter of intent with a large Chinese textile fibre manufacturer for licensing its paper pulp viscose technology (PPV® technology) to viscose fibre plants in China.
“Signing this letter of intent is an important step towards full-scale commercialization of our technology. The uncertain prospects on the dissolving pulp market increase the interest towards technologies for using alternative raw-materials, especially in China with its fast-growing viscose fibre industry. Efficiency, quality and environmental factors are the key targets of our technological development projects – and are in strong demand on our global market” says Heikki Hassi, Managing Director of Carbatec Ltd.
PPV® technology brings great advantages to viscose fibre manufacturers
The PPV® technology, patented by Carbatec Ltd, has been developed and applied in industrially scale at Avilon Ltd’s viscose fibre plant in Valkeakoski. This technology enables the usage of paper pulp in viscose fibre manufacturing, offering a considerable competitive edge for viscose fibre manufacturers, as the price of the paper pulp is lower than dissolving pulp. PPV® technology improves also the fibre quality.
The present market potential of PPV® technology on the viscose fibre and cellophane film industry is about 1, 000,000 capacity tons per year, resulting in savings of approximately 350 million dollars in raw-material costs of PPV customers, estimated by the average price or raw-material.
CellMark Ab, the global supply chain service company selling and marketing the PPV® technology and licenses developed by Carbatec Ltd (release on March 7, 2012) is the third party of this letter of intent.
Neo Industrial Plc
Markku E. Rentto
Managing Director
Further information:
Markku E. Rentto, Managing Director, tel. +358 207 209 191
Heikki Hassi, Managing Director, Carbatec Ltd, tel + 358 20 7800 506
www.neoindustrial.fi
Neo Industrial's strategy is to invest mainly in industrial companies with similar synergic benefits. The aim of investments is with active ownership to develop the purchased companies and establish additional value. Returns are sought through both dividend flow and an increase in value. Neo Industrial's class B shares are listed on the NASDAQ OMX Helsinki Stock Exchange. Neo Industrial's business segments are Cable and Viscose Fibers.