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Fabric tech outfit soars on US military prospects Rania Spooner

Zoom  Zoom Issue Date:2012-05-03   Source:business day   Browse:868

Australia's Alexium International has risen almost 15 per cent on the ASX today after receiving a letter of intent from US textiles distributor Duro to use its flame retardant treatment on a nylon range for military and industrial work wear.

 

Alexium chief technology officer Bob Brookins said the company had developed an eco-friendly flame retardant treatment for synthetic fabrics, which extinguishes a flame without the fabric melting.

 

The companies have agreed to key terms of a commercial agreement, which they hope to formalise in the coming weeks, Alexium told the market this morning.

 

Advertisement: Story continues below Although the finer details of the agreement remain confidential, the deal would include an upfront license fee, development cost sharing, machine sales, milestone payments and royalties.

 

Alexium chief operating officer and executive director Stefen Susta said the company was currently looking to secure similar partnerships in Australasia, Europe and Asia.

 

Duro is part of private equity firm Patriach Partners, which has an asset pool worth $7 billion across more than 70 companies.

 

The partnership has targeted a market opportunity they believe is worth more than four million linear yards of nylon.

 

Alexium's main office is in Perth, while its production facility is in South Carolina.

 

Its shares had risen 14.9 per cent in recent trade to $0.10 after opening at $0.09.

 
 
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