Alexium International receives approval to sell flame retardant technology in US
Alexium’s patent-pending flame retardant chemical treatment has now been approved for manufacture and sale in the United States.
South Carolina-based chemicals company Alexium International Group (ASX: AJX) has been granted approval to manufacture and sell its flame retardant technology Alexiflam NF in the United States.
The company today announced it has received US Environmental Protection Agency (EPA) approval under the Toxic Substances Control Act, which regulates the introduction of new chemical products in the US.
It follows the completion of the EPA’s risk assessment of hazards associated with the manufacturing, processing and use of Alexiflam NF, a patent-pending chemical treatment developed to provide flame retardancy for cotton and cellulose-based textiles.
According to Alexium, the US is the world’s largest market for flame retardant cotton, representing almost half of the global market.
The company said based on the provisions of the approval, it can now produce the volumes of Alexiflam NF required to support its sales targets for military and industrial application in the country.
Global distribution deal
The approval also builds on Alexium’s recently announced memorandum of understanding with specialty minerals and chemicals company ICL.
Under the MoU, announced earlier this month, ICL has been granted sole global marketing and sales rights for Alexiflam NF.
The agreement follows a long cooperation with ICL dating back to 2014 when the companies collaborated on a South Carolina/Israeli research and development program.
“We are excited by the potential we see in leveraging Alexium’s unique, proprietary chemistry for the FR treatment of cellulosic materials with the efficiencies afforded by ICL’s unrivalled global manufacturing, marketing, and sales distribution infrastructure,” Alexium chief executive officer Dr Bob Brookins said.
“Additionally, Alexiflam NF is a platform technology with applications beyond textiles including wood and adhesive applications, and partnering with ICL can accelerate these additional routes to market,” he added.
Now that the company has delivered on both milestones of EPA approval and the sales agreement, Dr Brookins said it is “well placed to drive the commercialisation of Alexiflam NF and deliver on the global opportunities we see for our unique textile technology”.
Development agreement
Last month, Alexium also announced the signing of a mutually exclusive development agreement to provide its technology to Pine Belt Processing for the treatment and supply of nylon/cotton fabrics for military uniforms.
The deal’s key terms cover the provision of sampling, pricing, testing and the timetable of delivery of Alexium-treated uniforms by Pine Belt to the US military for a “wear trial”.
Following successful completion of the development agreement, the companies are expected to move into a supply agreement for the final commercialised process and treatment.
Alexium shares were up 14.81% to $0.155 on today’s news by midday trade.