Accsys Technologies (AIM:AXS) said sales volumes of Accoya wood fell around 24% year-on-year, hit by a shutdown at its Arnhem plant and added production at a new site in Hull is unlikely to start by the end of the year.
But the sustainable wood manufacturer said customer demand for Accoya remains strong and in excess of production capacity and flagged additional capacity should address the pent-up demand.
Work at the plant has now been completed and production will gradually ramp-up and will increase annual production capacity by 33%. Full capacity is expected within two years.
Meanwhile, referring to a new Tricoya site at Hull, Accsys said it is unlikely commercial operation of Tricoya will take place before end-2022 and the project cost is likely to exceed initial estimates.
Accsys said it has approved a further bridge loan facility of up to €8mln, which will allow consortium partners in Tricoya UK Limited (TUK) to continue progressing the project while funding negotiations are in progress.
The bridging loan facility is uncommitted and Accsys must approve all TUK loan utilisation requests.
As part of its US joint venture with Eastman Chemical Corporation, the company said it has continued to make good progress at its new plant construction in Accoya, USA.
Shares of the company fell 10.11% at 80.00p.