Itaconix Plc (LON:ITX) shares surged on Tuesday after it signed an exclusive global agreement with Nouryon, formerly AkzoNobel Specialty Chemicals to supply it with its bio-based polymers with chelating properties for the detergents market.
The deal follows Itaconix's announcement in May 2018 that Nouryon had notified its desire to enter into a joint marketing effort after completing a successful technical and regulatory evaluation of the AIM-listed firm’s polymers.
WATCH: Itaconix seeing commercial momentum building and expansion of revenue potential
The group noted that this is the first supply agreement resulting from a joint development agreement signed by the companies in 2017 to explore opportunities for polymers made from bio-based itaconic acid using Itaconix's technology.
Under the terms of the supply agreement, Itaconix will produce and supply certain proprietary polymers with chelating properties that Nouryon will market to its customers in household, institutional, and industrial detergent and cleaner applications.
In addition, the parties will work together to transition many of Itaconix's current detergent customers to Nouryon.
READ: Itaconix shares jump as it inks licence agreement to develop non-phosphate dishwasher detergent formula
John R. Shaw, Itaconix’s CEO commented: "Our novel polymers offer great value as replacements for phosphates in detergents, which are being phased out due to environmental concerns. After our success in gaining initial use of our polymers through direct efforts, I am excited that our joint work with Nouryon over the last year has created this global opportunity for our polymers.
"We expect the supply arrangement will support a significant part of our forecast detergent revenues for 2019 and beyond."
In early morning trading, Itaconix shares were 39.5% higher at 5.65p.
Back in December, Itaconoix jumped after it signed a licence agreement with Canadian firm New Wave Global Services Inc to develop a non-phosphate dishwasher detergent formula.
The speciality plastics manufacturer said the formula, based on its water-soluble CHT polymer, would be used by New Wave to produce and market a new triple-chamber automatic dishwasher (ADW) detergent sachet for North American retailers in the private label market.