Nexam Chemical and Armacell have jointly agreed to extend the exclusive supply agreement regarding Nexam’s products into PET-foam
Nexam Chemical and Armacell have jointly agreed to extend the exclusive supply agreement regarding Nexam’s products into PET-foam, which was signed between the parties in February 2014.
The extension is due to the fact that the implementation of the supply agreement has been delayed by approximately 1 year as a result of a strategic decision made by Armacell to switch from virgin PET to recycled PET as the main raw material base.
Armacell had accomplished good test results with Nexam’s products in virgin PET and is optimistic about the outcome in recycled PET. However Armacell needs to reformulate and thereafter reconfirm test results using Nexam’s products with recycled PET instead of virgin PET. The reformulation work using Nexam’s products in recycled PET has already begun at Armacell.
Both parties wish to retain the good and close working relationship they have developed and have therefore agreed to extend the exclusivity period. This is believed to be the fastest way to a successful outcome for both parties.
For Armacell to retain the exclusive right, it needs to purchase a minimum amount of Nexam’s products. According to the now agreed amendment to the original agreement the minimum volume for 2015 is 10 tons of Nexam’s products and for 2016 respectively 2017, 75 and 150 tons.