Tricoya Hull Project outlook
Accsys intends to freeze current plant activity on construction and commissioning for an anticipated
period of at least six months. This will significantly reduce the FY23 cash impact from Hull on a
monthly cost run rate basis from approximately €4m earlier in CY 2022 to around €0.5m going
forward. During the Hold Period the Accsys Board will continue to assess the further work needed to
finalise construction and commissioning of the Tricoya Hull Project and the forecasting of the
remaining costs. The length of the Hold Period will be determined by the Board based on measurable
parameters and will not be for an indefinite period.
Two separate specialist firms were engaged to validate the capital costs for the remaining
construction and commissioning work required to bring the Tricoya Hull Project into operation. Noting
that the plant is the first of its kind, the specialists suggest that the additional capital cost to complete
and commission the plant is expected to be up to around €35m. This would take total project capital
cost to up to around €138m, from the previously announced expected maximum of €103m on 30 June
2022.
The monthly costs of the plant during the Hold Period will be up to approximately €0.5m (on an
average basis) for the ongoing security, maintenance and care of the site. The length of the Hold
Period, and the speed over which the completion works are delivered, will impact the total cost of the
plant to bring it into commercial operation.
The Hold Period will have the strategic benefit of delaying and preventing the Hull plant from coming
into operation during volatile and historically high gas and acetic anhydride prices:
• The Tricoya® production process requires proportionately more acetic anhydride per unit value of
wood chip produced than the Accoya® production process.
• While Accsys’ acetylation process continues to benefit from a partial natural hedge through the
sale of acetic acid by-product, commencing the operation of the Hull plant during historically high
and volatile prices for acetic anhydride would further lower the initial profitability of the plant during
its early phases of ramp-up.
• Therefore, delaying start-up of the Hull plant may improve the profitability of the operational ramp
up period and reduce funding requirements for the project.
At the end of the Hold Period, Accsys will only commit capital to complete the Hull plant if it is satisfied
that Accsys can expect to receive an appropriate return on further investment. Factors that the Board
will evaluate in this regard include:
• Greater clarity on costs to complete and commission the facility;
• Acetyls pricing, volatility and achievable margins;
• Project delivery capability, organisation and structure in place to give certainty, visibility and
assurance of the project completion; and
• Full exploration of funding options by Accsys, including consideration of trade and financial co-
investors, debt, new equity and contributions from Accsys’ cash resources.
Accsys’ financial position
The Group remains adequately capitalised and the Restructuring will not impact the cash resources of
the Group given that it is being conducted by way of the Share Issuance.
As at 30 September 2022, Accsys Group held adjusted net debt of approximately €62m (31 March
2022: €55m). The Group’s net debt figure is expected to decrease by around €9.5m as a result of the
Restructure given the reduction of the NatWest facility from approximately €15m to €6m.
Following the successful completion of the fourth Accoya® reactor expansion project, production and
resulting sales volumes are now increasing. As a result, and with reduced site activity at the Tricoya
Hull Project as set out above, the Group expects a good increase in cash generation progressively
over the remainder of the financial year.
The Tricoya Entities are currently loss making given that the plant is not yet operational (FY 2022
operating loss of €4.1m). The Tricoya Entities are currently fully consolidated into Group figures,