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Zirax plc 

('Zirax' or the 'Company') 

 

Update on Rosignano 

Zirax, the AIM quoted speciality chemical company focused on the development, production and sale of oilfield process chemicals and de-icing solutions, today announces that it has together with Solvay S.A. ('Solvay') initiated a process of renegotiation of the existing supply and licensing agreements at the Rosignano plant in Italy. The common aim of both parties is to revisit the provisions of those agreements, in particular with regard to the technical performance of the production unit.

As part of this process, both parties have agreed the return to Zirax of the advance payment that Zirax made pursuant to the supply agreement for a total of €2.2m (€2.0m in advance payment costs originally paid to Solvay, plus an additional €0.2m in interest payments), and this payment has been received by Zirax.  Zirax will continue to source product from the Rosignano plant while the renegotiations take place. Both companies are confident they can reach a mutually acceptable adaptation of the supply and licensing agreements.

The Company believes that the outcome of the renegotiations will provide Zirax with greater commercial clarity, so that it can continue with its strategy to expand the business internationally and meet continued customer demand for its premium grade products.

Commenting on the announcement, Fenlon Dunphy, Chief Executive Officer of Zirax, said: 'Zirax remains in a position of having more demand for its products than can currently be supplied, however, we remain committed to expanding production, and in turn substantially growing the size of our increasingly international business; either through acquisition, license agreements or the development of existing and new plant facilities. As the Company continues to undergo significant change, opening up new revenue streams and new markets, the medium to long term outlook remains positive, and I look forward to updating you more on our progress at the preliminary results in June.'

 

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About Zirax 

Zirax is a speciality chemical company manufacturing and supplying oilfield process chemicals and de-icing solutions to a global customer base. Zirax is the second largest supplier of calcium chloride pellets globally and the leading supplier in the Eastern Hemisphere. Zirax is quoted on AIM section of the London Stock Exchange (ticker: ZRX), is headquartered in London and has supply sources based in Western Europe and Russia. More information is available at http:// www.zirax.com

 

Enquiries: 

 

Zirax	Fenlon Dunphy, CEO	T: +44 (0)20 7868 1694
Hanson Westhouse Limited	Tim Metcalfe	T: +44 (0)20 7601 6100
	Richard Baty
Cardew Group	Tim Robertson	T: +44 (0)20 7930 0777
	David Roach
	Daniela Cormano

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