Eco Factory in Albania fully automated and operational - Yields Significant Improvements in Productivity, Reduced Cycle Times and Increase in Operating Efficiency
Certain information contained within this Announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 ("MAR") as applied in the United Kingdom. Upon publication of this Announcement, this information is now considered to be in the public domain.
Eco Buildings Group plc
(the "Company" or the "Group")
Eco Factory in Albania fully automated and operational
Yields Significant Improvements in Productivity, Reduced Cycle Times and Increase in Operating Efficiency
Eco Buildings Group Limited (AIM: ECOB), the UK-listed modular housing company, after a lengthy process of innovation and equipment and software upgrades, announces that it has now achieved fully automated production at its Albanian facility. This is a significant enhancement for the production line. The fully automated production line not only delivers walls of the highest-ever quality and consistency, but equally, does so at significantly higher output per day than previously achieved. Production time has been reduced by 33% thus increasing operating efficiency.
A single production line is now capable of producing over 177,000 sqm of GFRG (glass fibre reinforced gypsum) walls per year – enough to deliver 768 houses a year based on a standard 60 sqm two story flat roof detached house plan.
These improvements have been achieved through incorporating new technology into the production process and a rigorous engineering overhaul of every component. This has yielded a reduction in cycle-time to produce a wall, vastly improved panel quality standards and increased operational efficiency and cost reduction. This upgrade will improve revenue and profit projections for the current production line in Albania, now and into the future. It will also increase the Company’s store of Intellectual Property. These innovations will be incorporated into further production lines as they are installed and as the Company expands into new markets such as the Republic of Chile.
Sanjay Bowry, CEO, Eco Buildings said, “The process to get our production line, in Durres, to this stage of fully automated continuous production has been challenging and was achieved due to the outstanding skills and innovation of our local teams. It has resulted in a significant upgrade in productivity, efficiency and output. Additionally, we have added to our IP and further differentiated ourselves from the competition. The developments made in our software systems, which will drive productivity, efficiency and increase production pushing out the need for a second line in Durres. In addition, it is important to stress that these improvements will now be standardised in all our subsequent production lines. I’d like to thank all stakeholders for their patience as we have innovated our production facility to fully automated production and look forward to now significantly accelerating our outreach to the market as the Company delivers into its existing contracts and enters new markets that are already identified.”
Further information is available on Eco Buildings website: www.eco-buildings.net
For more information contact:
Eco Buildings Group plc
Sanjay Bowry, Chief Executive Officer
Fiona Hadfield, Finance Director
Tel: +44 (0) 207 380 0999
Spark Advisory Partners Limited (Nominated Adviser)
Matt Davis / James Keeshan
Tel: +44 (0) 203 368 3550
Tavira Securities Limited (Broker)
Oliver Stansfield / Jonathan Evans
Tel: +44 (0) 203 192 1739
Notes
The Company has acquired proven and innovative prefabricated technology which has been in development and commercial use since 2006. Eco Buildings' range of prefabricated, green housing products based on glass fibre reinforced gypsum panels (“GFRG”) provides a construction solution for both affordable and high-end housing.
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 €144 million over the first three years following Admission.
The market share for factory-based building technology is expected to grow significantly over the coming years as private developers and the public sector seek to address the substantial and growing deficit in housing stock and issues of construction cost, speed and quality and housing affordability.