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Alexium International commences first major commercial sector contract

Last updated: 09:46 20 Jan 2015 GMT, First published: 10:46 20 Jan 2015 GMT

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Alexium International Group (ASX:AJX, AX:AJX, OTC QX: AXXIY) has hit a milestone with the commencement of its first major ongoing commercial sector account to supply its fire retardant chemistries to an unnamed customer.

The contract is expected to generate significant monthly revenues from this quarter with indicative annual revenues of between US$1 million and US$1.5 million.
    
Chief executive officer Nicholas Clark said this is a major step for Alexium in the commercial sector and a very positive start to 2015 with its first sustained client

“This will now add, (along with our progress in the military sector) to our very strong progress in the commercial sector where we expect additional accounts in a range of markets this year,” he added.

“I am very pleased that our FR products will now be used by end consumers in one of the commercial fields for which we are currently undertaking commercial production trials with a number of product manufacturers in sectors including apparel, furnishings, transport and outdoor goods.”

The company noted the while it would continue to inform the marketplace of new contracts as and when signed, most customers in the commercial sector will require industry standard “commercial in confidence” terms to protect their competitive advantage in the market place.


Flame Retardant Market


Recently, Alexium cited an independent market analysis by US based MarketsandMarkets that estimates the global chemical flame retardant market could be worth US$10 billion in 2019. 

The report cites the market was worth about US$7 billion in 2014 and is forecast to increase by an average CAGR of 5.7% per year.

Of particular interest, organophosphorus flame retardants – the category which Alexium’s proprietary Alexiflam chemistries belong to - are expected to have the highest rate of annual growth of 7.5% over the next five years.



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