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June 20, 2022



Cleantech Building Materials plc

Funding partner appointed at additional increase China Accoya® Production capacity

This press release constitutes inside information that Cleantech Building Materials plc
is required to make public under EU Market Abuse Regulation 596/2014

Cleantech Building Materials plc (“CBM”, or the “Company” or the “Group”) is pleased to announce the commitment of DelMorgan Group LLC (“DelMorgan”), an internationally renowned investment bank, to support the financing of the Group’s intention to increase the planned production capacity of its China Accoya® Wood plant by 40,000 m3 at 240,000m3 per year. The average sale price of CBM in 2022 was 1,966.85 euros per m3.

The proposed additional financing is expected to take the form of equity and take place in 2022. The amount of total financing required is yet to be determined. In addition to enabling the expansion of the plant, the funding will also be used to build an advanced industrial system to fully recycle output chemicals from the Accoya® manufacturing process, significantly reducing the plant’s chemical purchases and increasing profit margins. This advanced industrial recycling system has the added benefit of further enhancing the Group’s high standards for sustainability and environmental protection. Each cubic meter of Accoya® wood produced sequesters approximately one metric ton of carbon dioxide.

In March 2021, CBM’s Hong Kong-based subsidiary Diamond Wood China Ltd (“DWC”) entered into a joint venture, Jiangsu Dragon Wood, in which DWC holds a 51% stake. Under the joint venture agreement, CBM will provide 25% of the financing, while joint venture partners, Nantong Acetic Acid Company and Bank of Jiangsu, will provide the remaining 75%, in a combination of local debt and equity financing. .

About DelMorgan

Based in Santa Monica, California, DelMorgan is an internationally recognized investment bank and financial advisor. With more than three decades of experience and more than $300 billion in successful transactions, DelMorgan professionals provide world-class financial advice and assistance to businesses, institutions, governments and individuals around the world.

About Accoya® wood

Accoya® wood is a high performance solid wood that is both durable and non-toxic to the environment. It is produced by improving sustainably grown Radiata Pine into an ideal material for windows, doors, shutters, decking, siding and general construction.

Architects and fabricators have traditionally chosen Accoya® wood primarily for its guaranteed durability of over 50 years, its dimensional stability and its excellent insulating qualities. However, in recent times there is an increased awareness that the materials that Accoya® competes with (such as aluminum, steel, uPVC, tropical hardwoods) are intensely resource depleting and/or or are very carbon polluting. Accoya® wood “locks in” carbon for over 50 years of its life. For every cubic meter of Accoya® produced, 944 kg of CO2 is sequestered, against 88 kg of CO2 issued. For this reason, Accoya® is the only structural building material to have received Cradle to Cradle™ Gold certification. CBM is building the first Accoya® wood factory in China to support this transition to sustainable building materials.

Accoya® brand wood products are widely accepted in European and American markets, as well as in China and Asia. The CBM Group has already put in place several Asian purchasing agreements and the group has started to receive inquiries about Accoya® wood produced in China from all over the world. The Nantong, China site in the Rudong Industrial Park is potentially capable of supporting up to 480,000 m3 of annual production.

Paul Richards, President of CBM, said“CBM is at the forefront of environmentally friendly companies with enormous capacity for growth, and as such is becoming increasingly attractive to investors with Environmental Social Governance criteria. DelMorgan is a perfect fit for the company as we seek to capitalize on this opportunity. »

Francois K.wherenig, general manager at DelMorgan said: “We are extremely excited to work with CBM to help them identify and secure the capital needed to rapidly expand Accoya® production capacity in China. The company’s focus on sustainability, coupled with its ambitious long-term growth potential, is exactly the type of business that DelMorgan’s experience can help and support to achieve its goals. We look forward to partnering with the company as it grows towards its very attractive profitability potential in the years to come. »

Greg Lee, President of Diamond Wood China, said: “The urbanization of China and the Asian region continues to drive demand for high-performance building materials derived from sustainable and carbon-neutral sources. The Chinese government, Bank of Jiangsu and our local joint venture partner are all aligned with our goal to build the largest Accoya® wood factory in the world.


Further information can be found on the company’s website at

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