Companies: SYM   

Degradable plastic pioneer Symphony Environmental Technology has clinched a 15-year supply agreement with Sharjah-based Fujairah Plastics.

Under the agreement, AIM-quoted Symphony is initially to deliver 500 tons of its d2w ® degradable polymers by the end of August for distribution by Fujairah, a leading carrier bag producer in the United Arab Emirates. Later on, Fujairah will begin to produce the polymers under licence from Symphony.

Michael Laurier, chief executive officer of Hertfordshire-based Symphony, is not revealing the financial terms of the deal, though he says it is ‘quite significant’ for the company, which lost £1 million in the six months to last June. Fujairah is expected to take d2w® production to more than 500 tons a month in due course.

Laurier argues Fujairah’s decision is an encouraging endorsement of Symphony’s product, which he argues is cheaper and more effective than alternatives such as paper or starch-based material. It has perked up Symphony’s shares, which fell from 2001’s 30p float price to 2.13p last month, but have now revived to 5.25p, up 1.56p this morning, where they value the company at £5.3 million.

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Symphony Environmental Technologies	AIM	£2.89m	2.75p	-0.12p
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