Zotefoams inks five-year deal with Chinese firm Shincell

7th May 2024 11:14

(Sharecast News) - Cellular materials specialist Zotefoams announced a strategic alliance agreement with Suzhou Shincell New Materials of Suzhou, China on Tuesday.

The London-listed firm said Shincell, established in 2019 by Dr Xiulei Jiang, specialises in sustainable foaming technologies, using nitrogen and carbon dioxide gases to expand plastics, creating environmentally-friendly lightweight foam materials through a purely physical foaming process.

It said the alliance included comprehensive agreements on technology licensing, development, market cooperation, and regional product distribution.

Shincell's technologies would augment Zotefoams' knowledge in nitrogen-expanded foams, the board explained, broadening the scope of products in both new and existing markets.

Under the terms of the agreement, Zotefoams would pay technology licensing fees totaling CNY 80m (£9m) over the five-year term.

"I am very impressed by Dr Jiang and the technology developed by his Shincell company," said group chief executive officer David Stirling.

"Their goal of environmentally friendly foaming using physical blowing agents aligns perfectly with Zotefoams' vision and markets.

"This alliance is an exciting opportunity to enhance the growth potential of our specialist foams business with sustainable solutions."

At 0950 BST, Zotefoams shares were down 1.62% at 525p.

Reporting by Josh White for Sharecast.com.