Alexium International Group Ltd (ASX:AJX) has received new purchase orders from two new customers in the bedding industry.
The two new clients represent US$2 million in annual revenue and are headquartered in the U.S and Europe.
Alexium’s new orders are part of the rapid global expansion of Alexicool™, Alexium’s phase change technology and follow recent purchase orders from South Asia and the Middle East.
Dirk Van Hyning, president, commented: “We have strong momentum with international sales of Alexicool™, as this follows on from our recently announced order of Alexicool™ from iTextiles, our partner in South Asia”.
“We remain on track to meet projected revenues of US$18.5 million for calendar year 2016.”
Alexium holds over 20 patents across nine countries for environmentally friendly chemistries and a process developed initially by the U.S. Department of Defense, which allows surfaces to become fire retardant, water proof and oil proof.
Applications under development include but are not limited to textiles, paints, and packaging, glass and building materials.
Alexium’s fire retardant chemical treatments are currently marketed for different fabric markets under the Alexiflam™, Ascalon™, Nycolon™, Nuvalon™, Polytron™, Omnitron™, Bactron™ and Alexicool™ trademarks.
Alexicool™ is a phase change material that makes fabrics that ordinarily retain heat, feel cool to the touch after treatment with Alexicool ™ whilst also ensuring durability of the fabric.
In addition to bedding, Alexicool™ has applications for apparel, performance fabrics and other sizable markets.
Alexium is adding manufacturing locations worldwide to meet rising demand for Alexicool™.
Growth and sales
August has been a period of both client and geographical expansion with orders from Asian distribution partner, iTextiles, and the two bedding orders.
Further prospecting by the U.S sales team is underway with 240 new leads focused on Alexicool™.
Furthermore, the rapid development of chemical formulations for nylon and cotton is opening up new markets for Alexium globally.
These two new purchase orders show that the expansion of manufacturing and production capacity undertaken in 1H16 is proving to be a good investment by Alexium.
The company now stands prepared to meet the expected rapid ramp-up of customer orders in 2H16.
These new purchase orders and two new clients are positive for the company and will support Alexium as it strives to achieve its US$18.5 million revenue guidance for CY16.
Alexium is strategically positioned within the evolving flame retardant industry.
There is a fast growing movement in this industry to move away from outdated flame retardants that are now being phased out or banned and employ safer, environmentally friendly alternatives such as Alexium products.
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