RCS - Eco Buildings Group - Update on First Production of Modular Housing

Eco BuildingsAnnouncement

15/06/2023 07:00

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RNS Number : 7612C  Eco Buildings Group PLC  15 June 2023

15(th) June 2023

Eco Buildings Group plc

("Eco Buildings" or the "Company" or "the Group")

Update on First Production of Modular Housing

Highlights

·      New purpose-built factory building in Albania completed close to
the new port terminal at Durres

·      All plant, equipment and vehicles previously operated in Dubai
now located in Albania

·      Operational team relocated from Dubai to Albania

·      Reassembly and commissioning of plant and equipment proceeding
apace at the new factory

·      Two supply and manufacturing contracts signed in place ready to
be fulfilled valued at €114 million

Eco Buildings is pleased to provide an update on the ongoing works currently
being undertaken in Albania ahead of first production and sales of its modular
housing product. The purpose-built 3,000m² factory building, located near the
new commercial port of Durres in Albania has been completed. All the plant and
equipment required for production, which was previously operated in Dubai, has
now been shipped and hauled to the new factory site. The team that operated
the factory in Dubai and decommissioned the plant and equipment there has now
relocated to Albania and is leading the local workforce in the reassembly and
commissioning in Durres. Progress is continuing apace. Eco expects the factory
to be operational and fully commissioned in Q3 this year. This will enable the
Company to commence production and sales under two existing supply and
manufacture contracts with a value of €114 million.

Sanjay Bowry said:

"We are pleased to announce the completion of the factory building, and the
safe arrival of all the plant and equipment at our new factory in Albania, one
of the lowest cost production environments in Europe. It is very encouraging
to see the joint team formed and working ahead rapidly to commission the
factory production line for commercial output in the near future. This will
enable the production of Eco modular buildings to commence later this year
against our contracted €114 million order book of single dwelling units
deliverable within the next three years.

We are currently well advanced in several further negotiations in other
markets where our fast, green building system is generating significant
interest as a tool to address the acute social deficit in affordable housing.
Following the successful completion of the RTO, we are now well positioned to
conclude these discussions and I look forward to providing updates on
additional contracts over the coming weeks."

 

Further information is available on Eco Buildings website:
www.eco-buildings.net (http://www.eco-buildings.net)

 

For more information contact:

 Eco Buildings Group plc                               Tel: +44 (0) 207 380 0999

 Sanjay Bowry, Chief Executive Officer

 Fiona Hadfield, Finance Director

 Spark Advisory Partners Limited (Nominated Adviser)   Tel:  +44 (0) 203 368 3550

 Matt Davis / James Keeshan

 Tavira Securities Limited (Broker)                    Tel:  +44 (0) 203 192 1739

 Oliver Stansfield / Jonathan Evans

 

 

Notes

The Company has acquired proven and innovative prefabricated modular
technology which has been in development and commercial use since 2006. Eco
Buildings' range of modular housing products from glass fibre reinforced
gypsum ("GFRG") provides a solution for the construction of both affordable
and high-end housing, with Eco Buildings' products being up to 50% cheaper,
two-thirds lighter and five times faster to deploy than conventionally built
homes.

Eco Buildings has already secured two sales contracts with major construction
companies, one in Albania, the other in Kosovo, which are expected to generate
gross sales revenue of approximately up to €38 million in total per annum
over the first three years (approximately €114 million in total) following
Admission.

In addition, the Group has entered into a manufacturing and licence agreement
with North Eco, a third-party company proposing to build modular housing in
the United Kingdom utilising the intellectual property of Eco Buildings. Under
the terms of the agreement with North Eco, Eco Buildings will receive 30% of
the gross receipts of each unit sold by North Eco. The Company is also in
ongoing discussions with potential additional customers for its modular
housing product.

Modular housing market share is expected to grow significantly over the coming
years as developers and nations seek to address the substantial shortage of
stock and issues surrounding quality and affordability.

 

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