Nexam Chemical Holding AB (publ). 2013 year-end report 1 January – 31 December 2013
02/26/2014
The Quarter at a Glance
Operations:
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Successful upscaling of production and initial sale worth approx. SEK 900 thousand of products to the HICTAC Clean Sky Project, with Rolls-Royce Jet Engines as the end client.
Continued development together with the leading PET foam producer, Armacell. Armacell has announced that, in the event of successful results, they plan on initiating commercialisation of products containing Nexam’s crosslinkers in several fields of application.
Positive results in the PA 66 project with BASF, which prompted discussions on going into a commercialisation phase.
Customer project involving a special nylon for use in, for example, mobile phones and tablets has progressed. Tests in regular production on the premises of the customer is in the process of being planned for Q1 2014.
Discussions with Nexam’s partners in the PO-Cross project are ongoing which aim to continue and expand our cooperation for the purpose of commercialising the results achieved.
Nexam has intensified its cooperation with three select contract manufacturers, which have now initiated preparations for production of Nexam’s products on a larger scale.
Nexam St. Andrews has completed final delivery of products to external customers and is now focusing on manufacturing Nexam products.
Nexam’s patent application for the unique molecule MEPA was granted in Europe. This patent is important, since MEPA is key for crosslinking nylons.
Nexam’s patent application for catalysis of crosslinking was granted in the US.
Nexam entered into a cooperation agreement with a US-based company for developing a new high-temperature polyimide resin for composites for aerospace applications.
Financial & legal:
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Net turnover for the period totalled SEK 1,707 (142) thousand. Net profit/loss before tax came in at SEK –8,126 (–4,933) thousand.
Total assets at the end of the period amounted to SEK 54,396 (21,590) thousand, of which there were SEK 32,511 (7,265) thousand in cash and cash equivalents at the end of the period.
Cash flow during the period was reported at SEK –7,172 (–6,552) thousand, which was according to plan.
Key Events after the End of the Period
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BASF and Nexam Chemical have jointly decided to initiate the commercialisation phase for a new crosslinkable material based on nylon 66 and Nexam’s crosslinkers. BASF has been awarded a two-year market exclusivity, on the condition that it buys a certain minimum volume of Nexam products during the contract term.
Nexam has entered into a three-year supply agreement with Armacell, the world’s largest producer of PET foam. Armacell has exclusivity for the use of Nexam’s crosslinkers for PET foam, on the condition that it buys a certain minimum volume of Nexam products during the contract term.
Customer project involving special nylon for applications such as mobile phones and tablets have progressed. Positive test results have been achieved and a larger volume of test materials have been produced and delivered to the customer for full-scale production tests in the end of February. The customer has announced that, in the event of successful results in the production runs, it will begin using the material commercially in the near future.
More in-depth discussions concerning cooperation agreements and forms of cooperation for commercialising crosslinkable polyolefin, such as polyethylene for pipes etc. is ongoing with one of the participants in the PO-CROSS Project.
Nexam has contracted an agent in Europe to sell Nexam products to converters, for applications such as upgrading recycled PET and polythene. Many interesting business opportunities have already been identified together with potential customers.
Nexam’s cooperation with three selected contract manufacturers continues with high intensity and preparations for production of Nexam’s products on a multi-tonne scale are ongoing.
Nexam’s patent application for the production of EBPA granted in Europe. This patent is important, since EBPA is key for the hightemperature resin Rolls Royce is evaluating.
Nexam’s patent application for the unique molecule MEPA granted in South Africa.
The Board of Directors of Nexam has decided to begin preparing the Company for changing its listing from NASDAQ OMX Stockholm First North to NASDAQ OMX Stockholm Small Cap.
Lund, 26 February 2014Board of Directors
These financial statements have not been audited by the Company’s auditor. Note: This report has been translated from Swedish.The Swedish text shall govern for all purposes and prevail in case of any discrepancy with the English version. Read the PDF for the complete report