Alexium secures R&D partnership, purchase order
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Manufacturing player Alexium (ASX:AJX) has secured an ongoing R&D partnership with one of the larger players in the flame retardant industry – just as it starts to diversify from the textile industry.
The ASX-listed AJX told the market this morning that it has secured an ongoing partnership with New York Stock Exchange-listed Israel Chemicals Limited (ICL) through a South Carolina government initiative.
The state government is putting in $232,000 into the partnership for AJX, with the research team reportedly looking at the development of flame retardant products for a $150 million military and specialty fabric industries.
The continuation of the partnership with ICL is a boon, with the Israeli company a major force in the industry with sales reaching $6.1 billion last year.
It also comes hot on the heel of news that it had secured a purchase order from the plastics market, a market which AJX had not been playing in before.
AJX told investors late last week that it had received a purchase order from the plastics market, although the size and potential value of the order were not disclosed.
It represents a diversification from AJX which had focused on the textile and military industries previously.
AJX has estimated the flame retardant chemical market outside of textiles to be worth $6.6 billion by 2019.
It also said that it had been in discussions with other companies about scale-up and potential purchase orders into the future.
Meanwhile, it also confirmed that it has won a second major US bedding client, bringing expected revenue from the two customers up to $6.8 million per year.