Middle East deal bagged by Symphony
Symphony Environmental has announced an exclusive 15-year distribution and manufacture agreement with the Fujairah Plastics Group of Sharjah, United Arab Emirates, for the manufacture and distribution of its newly developed d2w degradable polymers used in carrier bags.
The Herts-based degradable plastics and waste-to-energy group said the deal, which will see the degradable polymers distributed by Fujairah in the UAE, Bahrain, Kuwait, Oman, Egypt, Libya, Syria and Jordan, was the largest d2w polymer distribution order to date, lifting its shares price almost 27 per cent, up 1p to 4.75p.
The agreement is in two phases. The first is the supply phase, which is expected to be for a period of up to nine months and will see Symphony deliver d2w polymers directly to Fujairah’s newly established operating company in the UAE, Ecopolymers Company. Under the second phase whereby Fujairah will commence its own production under licence.
A minimum commitment has been received from Fujairah for 500 tons of d2w polymer for delivery between June and August this year. Once the production phase is established, Fujairah is expected to produce volumes of more that 500 tons of d2w polymer monthly.
“The demand for a competitive eco-friendly product is expected to be substantial and in the past week our volumes have nearly doubled with the award of a new contract by the Sharjah Co-operative for d2w carrier bags,” said Khalid Al Kaabi, managing director at Fujairah Plastic Group.