Melbourne, Australia-based Style Limited has signed a Patent License Agreement with Tarkett to manufacture a new range of green flooring products in Europe using Style’s proprietary strand-woven wood technologies. The cooperative Patent License Agreement provides Style with access to the major European markets for its ecologically sustainable floors.
Style has developed a newly patented strand-woven wood technology that processes inexpensive, fast-growing and replenishable timber species into wood floors with superior strength and durability, Style said. Under the Patent License Agreement, Style will license its proprietary strand-woven wood technologies to Tarkett to manufacture and sell multilayered flooring products within specific markets on a non-exclusive basis.
Initially, Style will produce for Tarkett its patented “wear layer” products at Style’s Chinese manufacturing facility as Tarkett completes development of its own manufacturing facilities in Europe. Once Tarkett’s facilities are completed and functional, Tarkett will manufacture the defined Style products under the Patent License Agreement. It is anticipated that the first products under the Patent License Agreement will be available in the market in late calendar year 2010 and accordingly the earnings contribution will occur in financial year 2011 and beyond.
“Today’s agreement provides Style with the final step towards full-scale commercialisation of our proprietary strand-woven wood technologies, and lays the foundation for Style and Tarkett to further innovate and develop a range of sustainable flooring solutions,” Style’s CEO Peter Torreele said.
“This agreement with a company of the caliber and market reach of Tarkett provides a major boost in enabling Style to capitalize on our industry-first strand-woven wood patents with the strongest possible entry into one of the world’s most vibrant and fast-growing flooring markets,” he added. “The Patent License Agreement will initially provide manufacturing volume and earnings to Style commencing in financial year 2011 and a valuable royalty earnings stream in subsequent years. This type of business will underpin Style’s continued penetration into the European market and provide a platform to exponentially grow our own business and consequently Style’s earning profile.”
Patrick Mathieu, president of Tarkett Western Europe and World Exports, said, “We are delighted to develop this partnership with Style that will reinforce Tarkett’s position as a global and innovative leading solutions provider. With this agreement, Tarkett demonstrates its strong commitment to further develop green flooring product ranges.”