9 July 2019, Diamond Wood China Limited (“DWC”) is pleased to announce the signing of a legally binding Investment Agreement to build the first Accoya® wood factory in China. Under the terms of the agreement, a Joint Venture will be formed between Diamond Wood China Limited and Nantong Acetic Acid Chemical Company Ltd (“NTAAC”), an international Chinese chemical group, to construct an Accoya® factory with an initial design capacity of 160,000 m³, and ultimate target annual capacity of 480.000 m³. The initial financing is for circa US$50m.
Accoya® wood is currently only available from the Titan Wood factory in Arnhem, Netherlands, and is principally sold to small construction projects. The new DWC-NTAAC Joint Venture plans to industrialise the production of Accoya® wood on a large scale. By leveraging significantly lower costs in chemical, wood and other key inputs, the planned China Joint Venture will supply Accoya® wood to high-volume wood-product manufacturers in China and Asia, which dominate global markets in windows, doors, flooring and outdoor furniture.
