News

SPDG to Receive Spanish Grants of up to Euro 3.2 million

26 June 2006

SPDG Technologies plc is pleased to announce that it has received confirmation of a €1.973 million non-refundable grant from the Spanish Federal Government representing 18% of the total costs of €10.75 million for its proposed natural fibre project in Albacete, Castilla-La Mancha. In addition, the Company has received indications that a further €1.3 million of non-refundable grants may be available to the project from regional bodies.  Combined, the grants should cover 30% of the project development costs.

Michael Cunningham, Chief Executive Officer of SPDG Technologies plc, commented:
“We are delighted to have received this support from the Spanish Federal Government. The manufacturing facilities we are looking to build will not only provide an important boost to the local economy but will be a flagship site for the production of natural fibre and bio-composite materials for the automotive, construction and electronics industries throughout Europe.”

With building due to start later this year, the Company is planning to construct a fibre processing plant and a bio-composite materials manufacturing facility at the 9 hectare site it has secured outside Albacete - the land having already been re-zoned, prepared and permitted for commercial development.

The planned facilities will initially be able to process up to 10,000 tonnes a year of locally grown kenaf for the production, on site, of materials based on natural fibre.

Michael Cunningham added:
“The EU’s environmental legislation is creating significant new market opportunities within key areas of European industry. For example, as of this year, all new cars sold in Europe must be 85% recyclable. Our new facilities in Spain will allow us to expand our presence in these rapidly expanding markets.”

In 2004, the annual market in Europe for natural based products was over €15 million with the use of plant fibres in the European auto industry having increased from 10,000 to 70,000 tonnes between 1996 to 2003. (Source Nova Institut report – September 2004.)