COMMERCIAL LICENCE OPTION AND FACILITIES ACCESS AGREEMENT FOR ALEXIUM’S RST TECHNOLOGY
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Perth, WA and Greer, SC -November 22nd, 2010- Alexium International Group Limited (“Alexium”) (ASX: AJX) (AX: AJX) has agreed commercial terms with SSM Industries Inc. (“SSM”) of Spring City, Tennessee for an option for SSM to licence in Alexium’s Reactive Surface Treatment (“RST”) technology, including an agreement for Alexium to access SSM’s integrated textile manufacturing facility, comprising knitting, weaving, finishing and dyeing plant and textile mill support.
An Alexium RST microwave unit has been installed at the SSM facility and has been used over recent weeks to treat commercial quantities of textiles. Under the Agreement, SSM will evaluate the RST technology initially for racing suits, re fuelers coveralls and flame retardant gloves for sale in the United States on an exclusive basis. The Option term is 12 months. The Licence financial terms are commercial in confidence but include royalties to Alexium on gross sales of RST treated product under the Licence.
The Licence may also be expanded to include oil repellency on Hi Visibility work wear and Fire Retardant work wear.
During the term of the Agreement Alexium will maintain the RST unit in SSM’s Spring City facility and provide technical support and training to SSM employees. Subject to SSM’s production schedules, SSM will permit Alexium to operate the RST unit utilising SSM’s textile mill for Alexium’s own requirements in producing commercial quantities of treated textiles for US Department of Defence and commercial partner testing.
Alexium CEO Steve Ribich said the Company is delighted to announce this agreement with SSM Industries, an acknowledged leader in personal protection textiles.
“This relationship, developed over the past two years has been invaluable in preparing our technology for large scale textile applications,” he said.
Scott Hilleary of SSM said “We have jointly identified a number of areas where we believe RST technology can significantly enhance the performance characteristics of personal protection apparel. This agreement will enable SSM to pursue these opportunities commercially in addition to its existing business as a leading manufacturer in the US for flame resistant apparel for military, fire and rescue, industrial and automotive racing use.”
Alexium and SSM would like to add a note on thanks to the Office of Textile & Apparel (OTEXA) from the US Department of Commerce for introducing the parties.
For more information visit: www.alexiuminternational.com
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